By Tom Sedoric, Casey Snyder, and Erica "EK" Kelly
Picture this: It's just another workday, and you walk into your office and tell Alexa to turn on your lights, computer, and music (or, it has already executed your task via a preprogram!). You sit down at your workstation; and instead of writing your first email of the day, ChatGPT has already done so for you; it only needs to be proofread. You move onto your next task, finding reports and charts that will support you in your meetings with clients later that day — but AI has completed that task for you as well, as you have trained your algorithm to search for relevant data for you on an ongoing basis (and it is hand-delivered to your inbox!). Your work for the day is mostly completed... but not by you. In the not-so-distant future, our workplaces are gearing up for a revolutionary makeover that may look similar to this one, all thanks to the game-changing presence of artificial intelligence (AI). As AI becomes an integral part of our professional landscapes, it's not merely a “tech upgrade” but a transformative companion shaping the ways in which we work. What was once lauded as a technology that would “take over the world” (think red-eyed, glassy robots destroying major cities or the movie Spade Odyssey), now is poised to be more of a “co-pilot” in advancing humans and society into the next phase of the future.
What is AI? McKinsey & Company describes it as “a machine’s ability to perform the cognitive functions we usually associate with human minds.” Historically, machines have always been responsible for propelling human innovation forward with inventions like the wheel, printing press, and even the calculator (and then eventually, PC’s). But all these inventions lack cognitive learning, the ability to perceive, reason, problem-solve, and interact with an outside environment. This has changed with the introduction of applied AI, where machine learning is a form of artificial intelligence based on algorithms that are trained on data (vs. operating strictly on code inputs from developers). They can detect patterns and learn how to make predictions and recommendations by processing data and experiences, rather than by receiving explicit programming instructions. As a result, one can “train” their model to perform a variety of functions that benefit their process: whether it be enhancing medical imaging in the healthcare field or sourcing data faster for the financial sector, AI stands to help revolutionize all corners of the economy.
Artificial intelligence (AI) brings a multitude of benefits and positive impacts across various domains, contributing to advancements that enhance efficiency, innovation, and problem-solving – and one of the fastest areas seeing growth is in the financial sector. Arguably one of the biggest features of AI that impacts this industry is the ability to automate tasks, thereby increasing efficiency, making daily tasks more manageable and hopefully more accurate. In addition to what’s described above, AI can quickly compare portfolios (for example, a current portfolio vs. a proposed portfolio for a new client starting with a new Financial Advisor). What would take the advisor hours to compile: manually inputting the current allocation, figuring out the analytics, building a comparison portfolio with complementing analytics, side by side comparison, etc) can now be done in seconds with a few baseline prompts. Another way AI can potentially transform the landscape of finance is its ability to perform independent and improved decision-making, where models can make decisions in real time, optimizing strategies and capturing relevant charts to support its decisions. AI can also provide greater equity to citizens in low-income and rural areas that cannot support bank branches or financial institutions. Through an AI chatbot, these individuals can access financial and banking tools that were once unavailable or unattainable in their areas, with the hopes of narrowing the gap between economic and social classes.
With any innovative technology, it comes with drawbacks. Especially in its early stages, AI can be unreliable. Companies are scrambling to “train” their models, i.e., “feeding” them relevant information in relation to a specific task they want their model to emulate. This takes time and requires the user to constantly check the work of its AI counterpart, which initially can be inefficient, and if the model is in use while its being trained, could share inaccurate information. Another drawback of AI (as it stands currently) is regulation: there is none. This leads to enormous security and privacy risks. In particular, “Deepfakes,” where AI is used to create convincing images, audio, and video hoaxes, have begun to circulate on social media, fueling disinformation and even costing victims of deepfakes their livelihoods. While the Biden administration and Congress work to implement regulation at a federal level, it still leaves areas of the marketplace susceptible for fraud. A third drawback is the potential effect AI will have on employment. While AI’s presence can significantly save its user times; some fear that these models will eventually replace employees in the financial sector, i.e. “robo advisors”, etc. While the drawbacks of AI in finance demand constant and vigilant oversight, they also underscore the imperative need for responsible development, ethical deployment, and a robust regulatory frameworks to ensure that the transformative potential of AI is harnessed for the collective benefit of society. Once achieved, harnessing the power of AI could be poised to be the greatest development of the 21st century.
For better or for worse, AI is poised to be “the future” of technology. Mundane tasks automated, decision-making infused with AI insights, and a playground for innovation will completely transform the human landscape in the coming years. As companies look towards a workplace where human creativity meets the prowess of AI, this new technology is set to promise not just an efficiency upgrade, but a dynamic, personalized, and inspiring way to redefine how we approach our daily grind.
The Sedoric Group of Steward Partners
Steward Partners Global Advisory
145 Maplewood Avenue, Suite 100
Portsmouth, NH 03801
(Office) 603-427-8870
The views expressed herein are those of the author and do not necessarily reflect the views of Steward Partners or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results.
Securities and investment advisory services offered through Steward Partners Investment Solutions, LLC, registered broker/dealer, member FINRA/SIPC, and SEC registered investment adviser.?? Investment Advisory Services may also be offered through Steward Partners Investment Advisory, LLC, an SEC registered investment adviser.?? Steward Partners Investment Solutions, LLC, Steward Partners Investment Advisory, LLC, and Steward Partners Global Advisory, LLC are affiliates and separately operated.?
AdTrax 6174084.1 Exp 12/24