LPL, Ameriprise wade into AI applications for advisors
The CEOs of LPL Financial and Ameriprise Financial Inc., Dan Arnold and James Cracchiolo, last month touched on the potential applications of artificial intelligence and how it could fit into their firms, which combined have more than 30,000 financial advisors working as either independent contractors or employees.
CEOs of banks, broker-dealers, registered investment advisors, custodians, asset managers and fintech providers are grappling with forming a strategy for AI — a technology many thought was science fiction just six months ago.
“This quarter, we launched a new performance optimization solution called Practice Hub,” Arnold said on LPL Financial’s July 27 conference call to discuss its quarterly earnings. “Over time, we see Practice Hub becoming a key tenet of our advisor experience, leveraging the power of artificial intelligence to operate as a co-pilot for our advisors.”
“We’re also beginning to use AI and analytics to further enhance how we engage and work with clients,” Cracchiolo said during Ameriprise’s conference call to discuss earnings, also on July 27. “With AI, we can serve up real-time information to help advisors identify a possible next best opportunity for clients based on their needs.”
Eric Reinhold, who departed Ameriprise in March after a decade and is now a registered investment advisor with Eversource Wealth Advisors, noted, “When I left Ameriprise earlier this year, the company was just starting to talk about AI and how it could be incorporated into marketing.
“I still write a monthly newsletter to clients,” Reinhold said. “My practice is less about volume. The focus is quality, not quantity.”
Securities regulators who watch over the industry are also wondering how this new technology will
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