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Ep. 5: Dr. Sindhu Joseph: Cutting Through the Noise to Leverage AI for Growth
9 Plays9 months ago
Seemingly overnight, artificial intelligence went from science fiction to reality. It’s one of the most talked about technology topics in recent memory, causing many RIAs to wonder just how, and how much, it will impact their businesses.
Given all the information – and misinformation – circulating about AI, should RIAs view it as a helpful tool or a threat?
In this episode Dr. Sindhu Joseph, Founder and CEO of CogniCor, joins guest host Ryan Neal, Senior Editor at TradePMR, to dive into this question.
Listen as they explore:
• The realities of AI and what it brings to the table for advisors
• How RIAs are beginning to use AI to support the growth of their businesses
• What advisors and firm leaders may want to think about as they consider whether, and how, to leverage AI as they strive to build enterprise value
Subscribe now, and connect with us on social media:
• YouTube
Get the transcript for this episode, with sources, at
https://synergize.advisorevolutionsciences.com/
About Dr. Sindhu Joseph
Sindhu is the Founder and CEO of Cognicor Technologies, a business automation platform designed to deliver operational efficiency and a conversational experience for wealth management firms.
In 2023, Sindhu was named one of the Ten to Watch by wealthmanagement.com (1) and in 2022 she received Wealth Solutions Report’s Top Women Leader in Wealth Management award. (2) She holds a PhD in artificial intelligence from the Universitat Autonoma de Barcelona.
More About Sindhu: LinkedIn: https://www.linkedin.com/in/sindhujoseph/ Website: https://www.cognicor.com/
If you want to join the conversation or connect with us, please visit us at synergize.advisorevolutionsciences.com.
This content is provided for general informational purposes only. The views expressed by non-affiliated guest speakers are their own, and do not necessarily reflect the opinion of TradePMR or its affiliates. TradePMR and its affiliates do not endorse any guest speakers or their companies, and therefore give no assurances as to the quality of their products and services. This channel is not monitored by TradePMR.
TradePMR does not provide investment advice, tax advice or legal advice. TradePMR is a Member of FINRA and SIPC. Trade-PMR, Inc. is registered with the Securities and Exchange Commission (SEC) and the Municipal Securities Rulemaking Board (MSRB). TradePMR provides brokerage and account services to registered investment advisors. Custodial services provided by First Clearing. First Clearing is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company. Copyright 2024 Trade-PMR, Inc.
For a transcript of this episode, with sources, visit synergize.advisorevolutionsciences.com
1 - Dr. Sindhu Joseph_TenPeopleToWatch2023_Wealthmanagement_Copywright 2024
2 - WSR Pathfinder Awards–TopWomenLeadersInWealthManagement_Julius
Buchanan_March 2022
Recommended
Transcript
Introduction to Synergize
00:00:01
Speaker
Welcome to Synergize, unscripted conversations where we explore the evolving role of the financial advisor in an emerging AI-driven world.
Collaboration for RIA Success
00:00:11
Speaker
Join us as we bring together thought leaders across a range of disciplines and industry experts, sharing insights designed to help RIAs thrive in the industry of tomorrow.
00:00:22
Speaker
And now, here's your host, Bill Capell.
Exploring Growth Opportunities at Trade PMR Conference
00:00:26
Speaker
Hi, this is Bill Capell, and welcome to Synergize.
00:00:30
Speaker
The Trade PMR team was in Las Vegas recently to host our 2024 Synergy Conference, Limitless.
00:00:37
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It was well attended.
00:00:39
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In addition to representation from the RIA community, industry thought leaders as well as subject matter experts were present to provide insights aimed at helping RIAs capitalize on the growth opportunity that lies ahead.
00:00:54
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While I wasn't able to attend, my colleague, Ryan Neal, senior editor at Trade PMR, caught up with a number of notable conference attendees to capture their thinking.
00:01:05
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There was a lot of activity on the conference floor, so you may hear a bit of background
AI's Role in Wealth Management - Interview with Sindhu
00:01:09
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noise.
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That said, you won't want to miss what this guest had to say.
00:01:14
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Enjoy the conversation.
00:01:16
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Welcome to the Trade PMR Synergize podcast.
00:01:20
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I'm Ryan Neal, Senior Editor here at Trade PMR, and I'm filling in for Chief Client Growth Officer Bill Capel, who couldn't be here with us this week.
00:01:29
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But we are at the Four Seasons in Las Vegas for our Synergy 24 conference.
00:01:35
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Sindhu is the founder and CEO of Cognacore, a business automation platform designed to deliver operational efficiency and conversational experiences for wealth management firms.
00:01:46
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I had a chance to meet Sindhu at Synergy24 and talk to her about the realities of AI and what it brings to the table for advisors, and what REAs really need to know about this technology going forward.
00:01:57
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Here's some of our conversation.
00:01:59
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Sindhu, you're an executive of a company that in our space is among the cutting edge of advisor fintech right now.
00:02:06
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So broadly speaking, what do you think RIAs need to know about AI and the impact it's currently having on the broader wealth management
Revolutionizing Client Experiences with AI
00:02:15
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industry?
00:02:15
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If you look at industries like retail, Amazon, or travel, Uber,
00:02:21
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The friend and experience is very, very seamless.
00:02:23
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Like within a couple of clicks, you are able to get your item in your doorstep without any hassle.
00:02:32
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And imagine the backend efficiency.
00:02:35
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It is able to move a physical thing from place A to place B within a few hours.
00:02:40
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So that's kind of the experience even from Uber and other industries that we get.
00:02:46
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But when it comes to wealth, something so fundamental to our existence, everything breaks down, both the engagement as well as the behind-the-scenes efficiencies.
00:02:56
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This is kind of a broader theme as well.
00:02:59
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If you look at the population here in the U.S., a lot of people work hard, and maybe two jobs, three jobs, and they know to make money.
00:03:10
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But the reverse is not true, which is how to put money to work for them.
00:03:15
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and i believe the that's the gap between the wealthy and the poor so if we need to have all of the people to you know kind of get them onto the wealth kind of experience then the tools that enable them to do that should be seamless efficient and intuitive habit forming so if you have let's say 500 in your bank account
00:03:41
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you would probably think of buying a Taylor Swift ticket rather than buying an annuity product.
00:03:47
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And that is really the difference between having that efficient, seamless experience.
00:03:52
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So that's where the industry is today, wealth industry is today.
00:03:56
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And I believe it's a historical opportunity for us to revolutionize that industry and that space.
00:04:03
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And Ender AI, I believe, is a golden opportunity for the industry assets to make that happen.
Adoption and Demand for AI Tools
00:04:10
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The tools are here.
00:04:12
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AI is here in a big way.
00:04:14
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And just to give you a little bit of historical background.
00:04:18
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Yes, please.
00:04:19
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AI has been around since almost 1950.
00:04:22
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So it's been, it's a very, very old technology.
00:04:26
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It used to be called expert systems and later on like machine learning caught up.
00:04:32
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So anything that a human would do with their own intelligence, if a machine can mimic that experience,
00:04:41
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That is what we call artificial intelligence.
00:04:43
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We are able to create a sense of intelligence.
00:04:46
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For RIAs, it is, you know, your daily practice management, your activities, your, you know, setting up meetings with your clients, looking for prospects, getting, you know, a beneficiary change for your clients, or even moving money or things like that.
00:05:07
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So all of these activities, you can actually instruct
00:05:11
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AI system to do it for you and it will take you through that process.
00:05:16
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Right.
00:05:16
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And I'm sure because I know you've been an academic in this field for quite some time.
00:05:21
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We could probably talk a lot about and I've also been writing about as a former position as a journalist writing about AI and sure we could talk about, you know,
00:05:29
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the different levels that are out there and people who debate what is AI and what isn't.
00:05:33
Speaker
But rather than go down that road and the academic road, which maybe we can do later, let's instead drill down a bit more into some of those specifics you just talked about with AI and wealth management.
00:05:45
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And I'd love it if you can give some ideas around...
00:05:49
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Where in RIA businesses are advisors using this today, if at all?
Personalized Service through AI Insights
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And what impact is it having on how they're growing their business?
00:05:58
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So RIAs are approaching AI with, of course, a little bit of caution.
00:06:04
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Sure.
00:06:06
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The primary reaction that I always get is, am I going to be replaced?
00:06:11
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That is one of the questions that is in the back of their mind.
00:06:15
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But there is also something that has fundamentally changed in their approach.
00:06:21
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Previously, when we used to kind of talk to RIAs, they would say, even the executives of RIAs, like COO, CXO level, they would say,
00:06:32
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Advisors are very difficult to adopt a new technology.
00:06:36
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So it would take time for them to adopt.
00:06:40
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But when ChatGPT and LLMs came, the trend has reversed.
00:06:45
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They are like, you know, advisors came to know about it and they started pushing for this kind of, you know, we want these use cases.
00:06:52
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They were like, okay, we know that there are regulation out there, but we really want it.
00:06:57
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Interesting.
00:06:58
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Yeah.
00:06:58
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And some of the ways they are using in broadly categorizing it in operational efficiency, that is one of the key.
00:07:07
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I think that's one of the immediate benefits that RIAs are deriving.
00:07:12
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Sure.
00:07:12
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Things like if you want to generate content, emails,
00:07:16
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brochures, anything that is generated content that needs to be communicated to clients, that is one key area where advisors are embracing this technology.
00:07:29
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Second is
00:07:31
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I think almost competing with it is the meeting management, client review meetings, where they started with taking notes.
00:07:40
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But I think what is exciting is an entire end-to-end experience where the AI can sit on top of CRMs and then look into your client base and say,
00:07:53
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okay these are a few clients that you haven't met in a while like you're supposed to meet them every quarter or every year and why don't you do you want to meet with them and if the advisor says yes then the ai tool would go ahead and schedule this meeting using you know connecting different tools and platforms your outlook your calently and then you know further prepare agendas based on previous meeting nodes and previous agendas
00:08:23
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And then even send it across to the clients itself and then sit in meetings, take meeting notes, convert them into tasks, push them back to CRM.
00:08:33
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So that's a great use case where advisors don't need to spend a lot of time in those tasks, but they can focus on what the clients are talking about, what their big concerns are.
00:08:44
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So those are the operational tasks that our RIS are focusing on.
00:08:50
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But what I'm most excited about is the personalization potential of using an AI tool.
00:08:58
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So we pride ourselves in the industry to be providing a personalized service.
00:09:05
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And how can AI help promote that personalization and take it one step further?
00:09:11
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So this is where like an AI tool can sit again in the CRM and then analyze all of the interactions, let's say like in all of the meeting notes, all of the email communications.
00:09:22
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all of the phone conversations as well as the background of the you know portfolio planning all of those information about the client and then say okay this is what this client looks like you know 360 view of the client from a family background perspective from their interest perspective from you know what they have from a money perspective so when you're going into a client meeting it's like
00:09:47
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someone like a personal assistant, a really smart personal assistant has whispered in your ear that okay this client has these preferences like they like to play golf or things like that and you are walking into that meeting very very confidently and
00:10:04
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You can deliver a personalized engagement, but also a personalized advice because now you know that, okay, these are some of the priorities and preferences of this client.
00:10:14
Speaker
So you probably need to kind of, you know, adjust your recommendation for this client and for their life scenario.
00:10:20
Speaker
So those are, you know, some of the areas that RIS are really embracing this.
00:10:25
Speaker
Yeah, that makes sense.
00:10:26
Speaker
Do you think some of these new ways they're using it?
Evolving Client Expectations
00:10:30
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I mean, I think I know what my answer would be to this, but from your perspective, is this improving their ability to serve clients and grow their enterprise value?
00:10:39
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I strongly believe that is the case.
00:10:42
Speaker
You know, this again touches upon what I said earlier about the wealth gap.
00:10:48
Speaker
If you look at the business aspect of it, there is a lot of money left on the table with
00:10:53
Speaker
No RIA supporting it, no financial advisors supporting it.
00:10:57
Speaker
Today it is not possible because advisors, you know, it doesn't make financial sense for them to support it.
00:11:03
Speaker
But with these AI tools that you can really grow and support this, you know, enlarge your communities and, you know, have more clients and, you know, have that democratization of wealth really happen.
00:11:17
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Right.
00:11:18
Speaker
Serve more clients, serve a greater type of clients, more type of clients, as you said, broaden the scale of people that can make use of a financial advisor.
00:11:29
Speaker
And in fact, like, you know, this could be even an younger generation who's just starting to build their wealth.
00:11:36
Speaker
And if you steer them the right way, they're going to stick with you throughout their life.
00:11:41
Speaker
Like that is 20, 30 years of like, you know, maybe they would mass a lot of wealth and, you know, you are
00:11:47
Speaker
being part of that.
00:11:48
Speaker
And I imagine even amongst the currently wealthy and the people that our advisors are already working with, as you mentioned at the very beginning of our conversation around other apps that they're using in their life and the expectations they now have of
00:12:05
Speaker
You know, my taxi service can do this for me.
00:12:08
Speaker
My bookstore can do this for me.
00:12:10
Speaker
My clothing store can do it for me.
00:12:12
Speaker
Why can't my financial advisor that has all my money?
00:12:15
Speaker
Why can't they do it for me?
00:12:17
Speaker
So this can probably also help RAs for, you know, as you mentioned, expand their client base, but also reach those expectations for the current clients that are working.
00:12:27
Speaker
Yeah, I think there is a definite shift in expectations from client side.
00:12:33
Speaker
They were somehow content with the previous experience that the industry was delivering, but no longer because they know that there are different options available and they start to kind of become part of that.
00:12:48
Speaker
Like, I would like to understand how my wealth is managed.
00:12:53
Speaker
And one step further, I think this will definitely come in the near future, is how are you taking your health data into managing your wealth?
00:13:04
Speaker
Today, it kind of lives as two distinct islands.
00:13:08
Speaker
And you are expected to imagine that if you fall sick or have some serious illness,
00:13:17
Speaker
financial advisors are magically is going to kind of adjust to that.
00:13:22
Speaker
But that's, I think if wealth and health is fundamental to our existence and it has to come together.
00:13:29
Speaker
So, you know, these are all expectations from the client and it is going to come to us pretty fast.
00:13:35
Speaker
Yeah.
00:13:35
Speaker
We better be ready very soon.
00:13:38
Speaker
So that's something I hear a lot about is how quickly this is all coming.
Debunking AI Myths and Enhancing Relationships
00:13:42
Speaker
I'm wondering though,
00:13:44
Speaker
Do you hear when you're out there talking to firms across the wealth management industry, do you come across any myths or false narratives or misinformation that seem to permeate throughout advisors, maybe not in popular culture, but within our space?
00:14:02
Speaker
Is there any that you keep kind of hearing and have to confront that, you know, we can use our podcast today for our listeners to dispel those notions?
00:14:10
Speaker
Yeah.
00:14:11
Speaker
There is a lot of misconception about AI in general and what it can do, what it cannot.
00:14:18
Speaker
And there are different spectrum of people.
00:14:21
Speaker
On the one end, there is extreme enthusiasts who think that anything like a science fiction is going to happen.
00:14:30
Speaker
Right.
00:14:31
Speaker
And they also feel scared that that is going to replace their jobs and things like that.
00:14:38
Speaker
So there is that end of the spectrum.
00:14:40
Speaker
And the other end of the spectrum is that I do not want to use AI because it's a security threat for my clients.
00:14:49
Speaker
And I don't want to put the data into these tools.
00:14:56
Speaker
And so I'm not going to, you know, and the other thing that I have heard is very unique and but came up pretty often is that, again, wealth business is personal and our value proposition is that, you know, we have that, you know, unique engagement with our client.
00:15:17
Speaker
We understand our client at a personal level.
00:15:20
Speaker
And even if how good the AI system is, it is never going to create that, help us create that personalization, which means that I do not want to, like our brand is providing that personal touch and we won't pollute that with AI.
00:15:40
Speaker
I think these are all things that...
00:15:43
Speaker
could be busted and AI could really help both in terms of personalization, but also in the other, like, you know, in supporting the client in their activities, automating things that you don't need to really focus on and
Key Takeaways on AI's Impact
00:15:58
Speaker
so on.
00:15:58
Speaker
Great, great.
00:16:00
Speaker
Well, as we wrap up our conversation here, do you think there are three quick takeaways for our listeners?
00:16:08
Speaker
If you wanted to give us sort of three rapid fire topics that they can listen to this episode and take home with them that they need to know about AI and how it can help grow their business.
00:16:20
Speaker
One is AI is definitely here, whether we like it or not.
00:16:25
Speaker
So I think embracing AI would be the right move for anybody.
00:16:31
Speaker
It is probably going to change how we as a society live, but that's for us to figure out.
00:16:40
Speaker
But denying its existence is not going to help anybody.
00:16:44
Speaker
So I think that's the first takeaway.
00:16:47
Speaker
The second is there are a lot of questions about whether AI is going to replace me.
00:16:55
Speaker
I think the tagline should be AI is not going to replace you, but someone using AI in the right way might replace you.
00:17:05
Speaker
So you should be really be looking out for that person or persons.
00:17:11
Speaker
So if you are not using AI, that is the real fear that you should have.
00:17:16
Speaker
The last one is a little bit technical in terms of like, you know, what kind of AI tools you should use.
00:17:22
Speaker
ChatGPT is out there as well as many other tools that are, you know, open, is trained on a closed data set and will take your data.
00:17:32
Speaker
You should look at tools that are guaranteeing data privacy, security, explainability, and use those, especially when your client data is involved.
00:17:43
Speaker
So do not look at all of the AI tools in the same frame of mind.
00:17:49
Speaker
Yeah, not all AI is created equal, I suppose.
00:17:52
Speaker
Excellent.
00:17:53
Speaker
So to recap, three things that advisors and firm leaders in the space need to think about today is that AI is definitely here, like it or not.
00:18:02
Speaker
Embrace it.
00:18:03
Speaker
Can't deny it.
00:18:04
Speaker
No head in the sand, no ostrich.
00:18:06
Speaker
Two is that AI might not replace you,
00:18:09
Speaker
but someone using AI in the right way might replace you.
00:18:13
Speaker
And I love that, by the way.
00:18:14
Speaker
I think that's an awesome point.
00:18:16
Speaker
I'm going to remember that.
00:18:17
Speaker
And number three, when we're talking about, we're looking at the tools out there, not all the tools are created equal.
00:18:23
Speaker
Things like GPT that are the open internet are one thing, but for advisors, look at some of those closed data set tools that are using things like explainability and privacy concerns and have those top of mind.
00:18:36
Speaker
Once again, thank you to everyone who took time to join us here from the Synergy 24 conference.
Conclusion and Legal Disclaimers
00:18:42
Speaker
If you enjoyed this special edition of Synergize, hit subscribe wherever you get your podcasts and be on the lookout for the next episode with actionable insights for how you can grow your business.
00:18:54
Speaker
And remember, the challenge is yours to capitalize on what the future offers.
00:19:04
Speaker
If you want to join the conversation or connect with us, please visit us at synergize.advisorevolutionsciences.com.
00:19:12
Speaker
This content is provided for general information purposes only.
00:19:16
Speaker
The views expressed by non-affiliated guest speakers are their own and do not necessarily reflect the opinion of Trade, PMR, or its affiliates.
00:19:24
Speaker
Trade PMR and its affiliates do not endorse any guest speakers or their companies and therefore give no assurances as to the quality of their products and services.
00:19:34
Speaker
This channel is not monitored by Trade PMR.
00:19:36
Speaker
Trade PMR does not provide investment advice, tax advice, or legal advice.
00:19:41
Speaker
Trade PMR is a member of FINRA and SIPC.
00:19:44
Speaker
Trade PMR Inc.
00:19:46
Speaker
is registered with the Securities and Exchange Commission and the Municipal Securities Rulemaking Board.
00:19:53
Speaker
Trade PMR provides brokerage and account services to registered investment advisors, custodial services provided by First Clearing.
00:20:00
Speaker
First Clearing is a trade name used by Wells Fargo Clearing Services, LLC, member SIPC, a registered broker dealer and non-bank affiliate of Wells Fargo and Company.
00:20:10
Speaker
Copyright 2024.
00:20:12
Speaker
Trade PMR Incorporated.
00:20:14
Speaker
For a transcript of this episode with sources, visit synergize.advisorrevolutionsciences.com.