(Hubbis) - The recent introduction of the CFA Institute's certificate in data science for investment professionals, as well as their handbook on AI, highlights the profound impact of technology on the wealth management industry.
These developments are expected to significantly shape the landscape of talent management for years to come, reported Wealth Briefing Asia in a news article.
The subjects included in the CFA Institute's curriculum and certificate programs serve as indicators of the knowledge and expertise advisors will need in the future. For instance, in 2021, they introduced a global examination on ESG investing through a dedicated certificate program, showcasing their forward-thinking approach.
Larry Cao, Senior Director of Industry Research at the CFA Institute, explained that their organization strives to anticipate future trends and industry shifts. In recent interviews with hundreds of CFA charterholders, the majority did not foresee AI immediately replacing their jobs. However, Cao noted that AI's impact on employment in the financial advisory sector could be more significant in the long run.
To further explore the applications and best practices of AI in investments, the CFA Institute recently released its Handbook of Artificial Intelligence and Big Data Applications in Investments.
One area of interest lies in the rise of chatbots and AI-powered communication tools, which have the potential to enhance client interactions. AI can also be utilized effectively for compliance tasks by identifying adherence to specific regulations in different jurisdictions. Furthermore, AI's capabilities in data management make it valuable for developing ESG investment models.
However, Cao believes that there is still progress to be made in terms of fully integrated AI solutions in wealth management. While AI has the capacity to transform various components of the investment process, it has yet to serve as a comprehensive end-to-end solution.
The fundamental question arises as to how far AI can replicate or replace human consciousness and cognition, touching upon philosophical inquiries. Cao emphasizes that human analytical skills and the ability to construct arguments remain areas where humans excel. Therefore, in most cases, AI is not seen as a complete substitute but rather a tool that can augment and empower wealth managers to focus on high-value tasks that drive revenue.
The CFA Institute's Data Science for Investment Professionals Certificate is designed for investment professionals in roles such as investment analysis, portfolio management, and client relations, although it is not limited to these positions.
Wealth managers are grappling with the impact of AI on their roles—whether it will replace relationship managers and bankers or enhance their capabilities, enabling them to engage in more revenue-generating activities. The hope is that AI will facilitate the latter scenario, providing wealth managers with the tools to deliver greater value.
June 7, 2023
