Charles takes time over his quarterly fund updates. Clients respond well to his personal touch and his unique voice keeps investors loyal. He can’t imagine doing it any other way.

Yet his clients are growing older. Their adult children come to talk about inheritance and they ask different questions. How sustainable is the portfolio? Do the companies he invests in do good works? What is his net zero strategy?

Charles hasn’t time to do his job, write his reports and answer these new questions. He is growing anxious about how to keep clients happy. And he’s receiving more messages about his views on interest rates, diversifying into digital, and what ESG means for oil prices. It’s overwhelming.

Peter has an idea.

—–

“We can use AI to identify market and economic trends and predict how long they’ll last. We’ll lay out a base case with charts and data and you can add an expert opinion Charles.”

“But I’ll have to rewrite it all in my own words. My clients like the way I write.”

“We’ll train the AI on all of your previous reports and it will copy your style. You’ll save loads of time because it’ll only need a simple edit.”

“But there’s so much to do to satisfy these young people. I don’t have time to get back to my best clients”

“We’ll build a chatbot to answer common queries. We can call it Charlie.”

—–

New Product Launches

Data science is nothing new. But it is expensive, both to acquire data and pay experts to crunch numbers. GPT changes that because anyone may interrogate data with well-crafted prompts.

Instead of just reading the news you may analyze it. Rather than look at charts you can assess scenarios of how things may turn out. And GPT will uncover trends and correlations that humans cannot see, freeing you to figure out if this updates an investment case.

You may develop a thesis for an asset class and launch new products.

Everyone pours over the same company data. With GPT you can combine economic, industry and company statistics and predict how each impacts the other. You’ll find a new way of approaching old problems.

Your competition is doing this today and your clients know it. How do they trust you to invest in technology stocks? Using AI in your business is a way of showing, not telling that you are in charge.

More Client Conversations

The most common client queries are about password resets, fees and charges, and reports you’ve already sent. Responses are easily automated. Imagine instead of waiting a day or two for your team to get back to them, clients receive what they want immediately.

76% of relationships end due to poor customer experience, according to Deloitte-Casey Quirk. Waiting is the worst customer experience. At least show people you care by replying and informing them when you will have an answer. AI will tell you that based on analysis of your records.

Now picture your new chatbot, powered by GPT. It is clearly automated because people prefer that to pretending there’s a human online. It has access to client records and to your views on interest rates, gold prices and this year’s elections. It responds with the same words you do, while guiding people to where they can find more information.

Your capacity to handle clients has increased tenfold. You are ready to grow.

The Next Generation

Charles now has a good grounding in GPT and his security concerns are addressed. He’s not sure that his thinking and writing can be faithfully repeated, but there’s no harm in trying. If it works he’ll have more time for strategic thinking.

Charles ponders expansion. Maybe an Emerging Markets bond fund is possible. He knows what to do but has never had time for the analysis. Peter is convinced that the grunt work will be done for him.

What type of firm will Charles leave for his successors? He sees a path to a growing business, attracting top talent and offering secure and successful services to the next generation of clients.

And to think he was worried them leaving.

Found this insightful? Learn more from Charles’ journey on AI & Digital Transformation:

An Introduction to AI for Hesitant Fund Managers

AI and Investing for the Security Conscious