Generative AI and the New Next Best Action

Artificial intelligence is reshaping wealth management. It fosters client engagement while driving efficiency across the advisor’s workflow, from onboarding to portfolio construction and risk management. Service homogeneity will soon succumb to greater personalization. Prospecting and segmentation will become more focused. Enhanced client profiling will boost the advisor value proposition, while customized client communications and advanced call routing create opportunities for cross-sales. At the center of generative AI and predictive AI applications is the advisor’s next best action for clients. 

The automated next best action is positioned to transform how advice is optimized and delivered. But there are risks, especially with the unpredictable nature of large language models and the generative AI response. Today, the Securities and Exchange Commission (SEC) has started to leverage penalties for RIAs that make unreasonable AI claims. As AI further penetrates the CRM and other core systems, wealth managers like BlackRock are building proprietary technology to mitigate risk. In contrast, other firms, such as Morgan Stanley, are building advisor applications directly with providers like OpenAI. In the background, new AI architectures and algorithms are bringing a greater level of precision and stability to generative and predictive AI applications. 

Key questions discussed in this report:

• What is AI-powered next best action?
• How is generative AI being deployed into the RIA tech stack?
• What RIA digital workflow solution providers will take the lead?

Companies Mentioned:

Accenture, Addepar, Advisor360, Advyzon, Altruist, Amazon AWS, Amazon SageMaker, Anthropic, APEX Fintech Solutions, Bank of America, Black Diamond Wealth Platform, BlackRock (Aladdin, eFront), Broadridge, Broadridge AdvisorStream, Charles Schwab, Conquest Planning, Databricks, DeepBrain AI, Delphia, Docupace, DocuSign, Elai.io, Envestnet, Envestnet MGP, Envestnet Tamarac, Envestnet Yodlee, Fidelity, Fidelity eMoney, Finicity, Flourish, FMG, FP Alpha, Global Predictions, Google, IBM/International Business Machines, Intuit, JPMorgan, Lambda, LangChain, Laserfiche, LPL Financial, Microsoft Azure, Morgan Stanley, Morningstar, Morningstar Advisor Workstation, Morningstar ByAllAccounts, MX, NICEActimize, Nitrogen, Ntropy, NVIDIA, OpenAI, Orion Advisor Solutions, Orion Redtail Technology, Pershing/ BNY Mellon, Pinecone, Plaid, Responsive, Salesforce, Salesforce Einstein, Snappy Kraken, Snowflake, Synthesia, TIFIN Sage, TradePMR, Wealthbox, WealthManagementGPT, Wealthscape, Weights & Biases, Wove | BNY Mellon Pershing