FAQ

Generative AI FAQ

What’s generative AI and how’s it different from earlier AI?

Generative artificial intelligence (GenAI) systems represent an important evolutionary leap in AI. While traditional AI analyzes existing data to automate tasks or make predictions, generative AI can create brand new text, images, music and other content. This opens up new possibilities for wealth management firms in everything from business development to client communications to operational efficiency.

Think of traditional AI like a calculator: It follows strict rules to solve specific tasks. It can help detect fraud or recommend a purchase on Amazon, for example. As a rule-bound system, it analyzes existing data but can’t create anything new. GenAI is more like a true digital assistant. It can absorb tons of data online and elsewhere, learn patterns and create original content—everything from animated videos to business plans to computer code.

How are advisors using AI and GenAI now?

How onerous are AI solutions to implement?

How is AI accessed/rented? (Landscape of providers)

Do I need to work with a provider or is ChatGPT, Zoom’s AI, etc. adequate?

What’s the cost/benefit breakdown of AI adoption?

What happens if my AI partner/provider goes kaput?

What’s ahead as far as the next wave of use cases?

Will AI ultimately replace advisors or remain just an operational efficiency tool?

How do I separate AI hype from reality?

Should I be concerned about client info privacy and other regulatory matters?

How might AI affect the playing field between big and small firms?