Can generative AI answer advisors’ call for personalization?

investmentnews.com:

A new survey from Totumai, a technology firm dedicated to enhancing advisor-client communications, offers a fresh perspective on the shifting financial advisory landscape, particularly with respect to using generative AI.

In a joint study with research firm 8 Acre Perspective, Totumai surveyed 100 financial advisors to understand the challenges they face and how AI could help address them.

Among the advisors they polled, around half (54 percent) find it hard to find time for each client, and a little more than two-thirds (68 percent) wrestle with scaling their practices effectively.

Amid these challenges, advisors are shifting their priorities. Only 25 percent of the respondents expressed a desire to spend more time on investment management, compared with 66 percent who prioritized client-facing activities and 45 percent who want to double down on prospecting and marketing efforts.

Tellingly, an overwhelming 96 percent of advisors acknowledging the importance of personalized interactions. In spite of that, only 10 percent said they have achieved this level of customization with all clients, and 29 percent admitted they had little or no personalization in their client engagements.

“Meeting consumer expectations for greater personalization can be challenging, but also represents an opportunity for the financial services industry to come to parity with other parts of consumers’ lives,” said Jim Neuwirth, president of 8 Acre Perspective. “Take the streaming services – they curate our experience and learn more about us as we select what we want. This is the personalized experience consumers are used to.”

Delving into advisors’ adoption of AI, the survey found only 12 percent are utilizing AI, but 48 percent have plans to