Harnessing AI for ‘made-to-order’ advice
As Capgemini recommends artificial intelligence (AI) be used for hyper-personalised advice, two professionals explore the impact it is having on advisory practices.
The company’s Financial Services Top Trends 2025 report highlighted AI as a key theme set to create further transformation in advice businesses this year, through the provision of “made-to-order” investment advice strategies.
Capgemini discussed how AI can create personalised messages, experiences and offers for each client, as well as tailor product recommendations to suit individual preferences, thus generating engagement and client loyalty.
AI can also optimise tax planning strategies and offer ways to amplify returns, improving clients’ overall financial wellbeing.
Highlighting insights from its World Wealth Report 2024 last year, which tracks the wealth of global high-net-worth (HNW) individuals, Capgemini explained 64 per cent of HNW clients are concerned by a lack of personalised advice tailored to their financial situation.
“Artificial intelligence (AI) offers solutions, and wealth management executives rank intelligent insights for portfolio optimisation as the second-most significant impact of AI, after manual process automation,” it said.
Speaking on a recent Institute of Managed Account Professionals (IMAP) podcast episode, Marin Wealth managing director Pedro Marin shared how his business is harnessing AI.
“AI will play a huge part in what we do. We currently use [AI] to send out proposals, so the letter of engagement is basically written by AI. It comes straight from our file notes which are also written by AI. What used to take me probably 45 minutes to write a file note now takes around 2-3 minutes. The efficiencies are there,” he said.
According to an ASIC report last October, 61 per cent of advice licensees said they want to increase their usage of AI in the next 12 months.
Looking ahead, Marin expects AI to help advisers service upwards of 200 clients, thanks to its efficiency gains.
He continued: “Technology will help us massively scale up. I would consider 200-250 clients per adviser will be the norm because of how easy it would be for us to engage. Five years from now will be a completely different scenario from the absorption of AI.
“If you have a database of strategies, which could be endless, you can just tell AI: ‘This is the strategy I’m thinking of, this is the research that backs it up, I just need you to write the ROA’ that may take us an hour or two hours. The research is done but it’s the actual writing and editing that takes longer. That’s what AI will probably remove from our system.”
Also appearing on the podcast, former financial adviser and Coalition backbencher Bert van Manen emphasised the value of human interaction with clients coupled with the assistance of technology.
He commented: “The personal relationship [with a client] – AI will never replace that, because when you’re sitting across the table from somebody and you can see their facial expressions or their tone of speech, you can pick things up that may lead you asking a question they hadn’t even thought about themselves. That’s the value of personal relationships.”
Capgemini’s report unpacked how AI can support wealth managers throughout the investor journey, such as by:
- Prioritising client leads for onboarding success and analysing client risk factors and appetite to help build relevant investment portfolios.
- Personalising welcome screens with relevant content and actions to generate recommendations and triggers.
- Assisting with portfolio rebalancing through additional investment recommendations aligned with major life events.
- Supporting tax optimisation.
AUTHOR
Jasmine Siljic
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