AI News: AI in wealth management & its potential to disrupt the space

Wealth management services business is not easy to start in India as financial literacy is low. Most people are not even aware of how they need to create wealth and then manage it.

Only a few understand the importance of wealth management, and they seek the services of financial advisors to manage their money.

Financial advisors do a great job at managing clients’ money, but in the end, they are humans, and making an error is natural. You do not want any errors when it comes to your money, do you?

Hence, we seek help from technology – AI has come out as a perfect technology that is helping us manage money, invest money, and much more.

Some companies use it to handle low-value tasks, while others give AI the power to manage everything from end to end.

Wealth Management & AI

Wealth management is a broad term and includes services like financial advice, tax guidance, estate planning, and even legal assistance.

It looks at multiple factors that impact your overall finances before providing recommendations to maximize your wealth. The financial advisory has always been a costly affair. With AI, the cost has significantly come down, and it has been found that AI-based systems are better at making decisions.

Below are some areas under management where AI is helping:

Investment advice: AI-based systems can study customers’ financial position, financial history, and habits and deliver advice accordingly. Customers do not have to spend hours with advisors to provide inputs before investing – it is done in minutes.

Tax planning: Tax planning for businesses, HNIs, and other similar clients has always been a complicated process. They are spending big on tax planning. Today, we have AI-based tax planning systems that can autonomously compare tax assumptions, projections, and configurations. They can also analyse past data and other financial sources. Based on the analysis, the system recommends optimal tax planning.

How is AI helping in wealth management?

There is a lot AI is doing in wealth management to…

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