The surge of Artificial Intelligence (“AI”) into our collective consciousness is akin to a G-force event. The possibilities this technology offers are blowing our collective minds. I’ve attended numerous conferences and watched audiences try to understand what AI is, how it works, and the implications of its impact on our lives.
Jamie Dimon, the CEO and chairman of JP Morgan Chase, is convinced that AI will have a historic impact on society. In his most recent letter to shareholders, Dimon said, “We are completely convinced the consequences will be extraordinary and possibly as transformational as some of the major technological inventions of the past several hundred years.”
Generative AI holds many promises, including improving productivity in our workplaces. Some people are skeptical. Others are worried. At the turn of the 19th century, English workers in the Luddite movement protested against the introduction of new machines, smashing them to prevent job loss and a decrease in wages.
One small microcosm to see this play out is in financial services. A recent survey we conducted with 8 Acre Research illuminates how wealth managers are adopting this new technology. 96% of financial advisors (FAs) acknowledge that personalization is important to the success of their practice. One said, “I am looking to use technology for higher efficiency for the practice and, more importantly, a better experience for the client.” And yet, the amount of attention given to AI is not widespread. Only 7% of FAs were giving it a lot of attention. While only 44% were giving it some attention and 49% none. 40% of advisors have no plans to use AI. Not surprisingly, age factored into the equation. 80% of advisors under the age of 45 were focused on AI, compared to 42% of advisors 60 and above. FAs who choose to ignore do so at their peril. While not the equivalent of breaking machinery, it risks their future success.
When it comes to AI, we are not mere spectators. We have the power to choose: we can either overlook its potential, acknowledge its inevitability, or embrace its transformative power. Each path carries its own implications, and it is up to us to decide which one to tread.
