The Future of Financial Advising: AI and Robo-Advisors


Robo-advisors are the future of finance, providing a data-driven approach to wealth management that tracks trends in real time and allows investors to have full confidence in their analytical and computational abilities.

These AI-driven tools, having learned from top industry professionals, offer investors transparent, insightful advice to achieve financial targets. Their growing presence is evidenced by their market valuation, which according to Allied Market Research, surged from $7.9 billion in 2022 to a projected $129.5 billion by 2032.

Their accessibility and affordability have democratized financial planning, allowing even the average investor to tap into sophisticated, data-driven insights. As robo-advisors gain traction, they should be seen not as replacements but as complements to experienced human advisors.

Machine Learning’s Role in Personalized Investment Strategies

The financial landscape, often seen as a maze of numbers and strategies, is being transformed by machine learning’s meticulous precision. Investment strategies, once a balance of gut instinct and market knowledge, can be finessed with hyper-personalized plans tailored to individual settings, risk tolerances, and portfolio characteristics.

In today’s era, marked by a heightened emphasis on ESG initiatives and broader societal concerns, advisors are tasked with staying attuned to the myriad external factors that shape investment choices. But AI and machine learning, armed with vast datasets spanning demographics, preferences, and more, can gauge an investor’s current stance and discern the motivations likely steering their financial decisions.

The projection capabilities within the models, cognizant of market dynamics and potential life events, paint a colorful, data-forward picture, enabling advisors to have a granular view of their clientele.

Advantages of Robo-Advisors and AI in Market Volatility

Robo-advisors and AI are advantageous in times of market volatility, as they provide an objective evaluation of portfolios, freeing up human investors’ time to cater to customers’ deeper needs. These technologies effectively work around the clock to have full visibility on customers’ investments, pivoting when necessary—and because investors’ preferences are documented and analyzed by the tools, the technologies can operate with confidence, in accordance with both short and long term goals.

For human advisors, the technological boon of high-speed data-processing and predictive analytics is twofold. First, it provides the space for more personal interactions, fostering better relationships and client trust. Because more time is freed up, advisors have more time to manage relationships by sending out more frequent messages and making more personalized phone calls. Second, it allows for the potential for expanded outreach and new client acquisition given the increased time available. Advisors can pursue new business opportunities and spend more time following up with prospective clients.

Advisors are fans of AI tools like QadvisorGPT, one of the few generative technologies that simultaneously crafts hyper-personalized content for email marketing, newsletters, and personal correspondence, all while fetching real-time data with no lag time—a feature that even ChatGPT has yet to provide to the public. With this time-sensitive accuracy, advisors can embrace the best of data-driven processes and realtime information with confidence and ease, even during the rockiest times.

AI’s Impact on Customer Interactions and Engagement

AI-enabled customer experiences help ensure a seamless advisory session. How? A balanced division of labor—while the algorithms manage the finances, the advisors cultivate the human relationships, helping them understand clients’ aspirations and tailoring services to meet them.

The supplementary bandwidth granted by robo-advisors and automation means advisors can truly listen, adapt, and calibrate the technology to meet client needs. These systems, far from being rigid, afford advisors the agility to recalibrate strategies as landscapes evolve.

Qdeck allows advisors to login to a single system, manage their customers’ portfolios, and have a custom AI copilot that helps to craft meaningful communication. Advisors can be more focused on cadences and how to share valuable information with their customers to gain more trust and build a stronger partnership.

Advisors and clients alike can appreciate the results that come from a combined effort of human and robo-advisors. As client investments grow and become more complex, robo-advisors handle basic tasks while human advisors focus on deeper strategies.

Looking ahead, there’s potential for significant wealth growth, especially with millennials and Gen Z set to inherit and generate wealth.

The Future of Wealth Management

Robo-advisors and AI will continue to have a profound effect on the future of wealth management. Here are our predictions:

  • Machine learning personalization will thrive: It will play an increasingly critical role in creating investment strategies. Hyper-personalized investment strategies will continue to pave the way for the future, and the era of emphasizing ESG initiatives and societal impacts will continue. According to Dealroom, last year, 18% of investment in fintech went into personalized financial management.
  • There will be enhanced market resilience with robo-advisors: Machines can deal with volatility in a seamless, sober way, around the clock. These machines can pivot literally while advisors and customers sleep.
  • There will be an elevated customer experience because of AI: The AI will understand individual needs and adjust accordingly, empowering advisors to communicate meaningfully, with empathy and understanding.

The future of wealth management will continue to be marked by technology and human allyship, paving the way together to reach customers’ goals, and make the advisor experience simple and prosperous.

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