Hello. It’s a funny thing the Universe. What does it all mean, Life, the Universe and Everything ? If the answer is 42, then what is the question? What do you get when you multiply six by seven possibly.
There’s a lesson in there actually that might help us ponder AI and advice (as someone with little advice and AI expertise but a slight philosophical inclination in the matter). Seeing as there was a lot of it in the news last week (and copying Mark P by using Douglas Adams references folk might not understand), let me give my brief and unsolicited opinion.
Advisers perform a very human function in people’s lives. Beyond capital, advice is built on life goals, which get impacted by a nebulous number of things, people and events nobody can account for called life.
You can’t really code subjectivity. AI can imitate what it looks like but there are areas of advice that are less than simple and need someone to negotiate. Things like vulnerability, bereavement, divorce, Liz Truss, ungrateful children, ethical beliefs, etc.
AI doesn’t really know what it is to recognise a subjective reaction in someone else and provide subjective reassurance that makes them feel better in an intangible way. It might just go 42, because that’s what six multiplied by seven is.
What it will do – with delicate and overseen prompting – is produce consistent, dynamic and quick work in areas related to admin, compliance and other dullness that advisers often find gets in the way of them, y’know, advising.
I have more developed thoughts on AI and content creation, but that’s another blog.
In short, AI will not understand the complex meanings going into clients’ plans, but it can help free up the capacity of someone who instinctively empathises with the kind of meaning nobody can account for.
For more on this and other news:
LANG CAT & CLIENT MENTIONS
Can AI ever be as helpful as humans?
Nat writes on AI in advice.
Source: The Scotsman
Mark Polson: Financial planning is more an art than a science | Money Marketing
A great read from apparent Hitchhiker’s Guide fan Mark P.
Source: Money Marketing
Growing appetite for international bonds among UK advisers – International Adviser
Based on research we’ve done with Canada Life.
Source: International Adviser
Why Liontrust’s chief executive John Ions would do it all again – FTAdviser
Source: FT Adviser
Clifton Wealth Partnership offers smoothed with-profits fund to advisers – FTAdviser
The smoothed with-profits fund offers pricing, trading and smoothing on a daily basis, to ensure transparency.
Source: FT Adviser
ADVISERS
David Butcher: How to write in a way that engages your clients | Money Marketing
Some interesting numbers in here, including the alarming stat that Americans only read on average for 16 minutes a day.
Source: Money Marketing
‘Recruiting from the sector was a disaster for us’ – FTAdviser
Interesting. HomeGame 5 speaker Adrian Murphy talks about recruitment at his firm.
Source: FT Adviser
PLATFORMS
‘We’re building the best AI-ready platform for advisers’
Not that they want to boast or anything.
Source: Money Marketing
INVESTING AND WEALTH MANAGERS
HSBC on alert over fears of shadow banking crisis
I think the fact this is murkier than AI related bubbling makes it as frightening. Say, if they blow up at the same time.
Source: The Telegraph
Vince Cable: it is right that Isas should incentivise taking risk – FTAdviser
The former Lib Dem leader reckons Isas should encourage investment into the UK.
Source: FT Adviser
AI
AI can ‘absolutely’ provide empathy, but will it replace advisers? – FTAdviser
AI can provide reassurance but it cannot empathise with a client and then supply sympathy. It can identify issues related to language delivery and vocabulary and then calculate courses of action while using sympathetic language, but it’s all based on probability and not feeling.
Source: FT Adviser
The research is wrong – AI is replacing advice roles
Or maybe we’re all doomed.
Source: Money Marketing
PENSIONS & RETIREMENT
Life expectancy must not be only factor to determine state pension age – FTAdviser
The Investing and Savings Alliance warned future retirees could be in for a “double whammy” if the state pension age rises while pension tax incentives are cut.
Source: FT Adviser
Clients cutting pension contributions to invest in IHT solutions
Nearly half of advisers indicate this is happening according to research by Downing.
Source: Money Marketing
£2.5bn in unclaimed Pension Credit signals engagement crisis
According to data released by the Department for Work & Pensions, up to 1m families across the UK could be losing out on roughly £2,600 a year in pension credit.
Source: Money Marketing
TRADE & ECONOMY
Reeves faces £20bn hit to UK public finances from productivity downgrade
Yikes.
Source: FT
Tax advantage of UK self-employment at record high, analysis finds
Calls to make it fairer with the Resolution Foundation suggesting it is encouraging weaker productivity. Freelancers and self-employed people point out it represents the risks without the benefits of being employed.
Source: FT
Despite “flying blind” amid a US government shutdown.
Source: The Guardian
CRAZY CAT STORIES
Tiger, cheetah and leopard all fall ill in medical mystery at UK zoo | The Independent
Going off lang cat HQ over the past few weeks, they’re not the only cats being struck down.
Source: The Independent
OUTSIDE THE TRADE
Social landlords in England now forced to fix emergencies within 24 hours | Housing | The Guardian
A good example of the power of regional journalism as the Manchester Evening News ran a campaign promoting Awaab’s law.
Source: The Guardian
Mourning and Modernity: Reflections on Edinburgh’s Changing Face – Bella Caledonia
Interesting. A journalist rides along the No. 13 bus route and mulls over gentrification while making comparisons to London’s east end.
Source: Bella Caledonia
Not another work email with exclamation marks!
Really interesting! I must admit they are not something I use often and I still am yet to use an emoji intentionally. I’m less hardline but still skittish about serial commas (I understand they are not incorrect but for some reason I think they look ugly on the page and definitely overused.)
Source: FT
Sean McKinven is PR account executive at the lang cat
