Morningstar - Q2 2024 - 25

versions, ChatGPT works like a sophisticated
search engine. Its output can range from a simple
answer to an entire treatise with citations.
Here's how to get the most out of ChatGPT (or any
other chatbot system):
gCreate thorough, specific, thoughtful prompts.
Remember the adage " garbage in, garbage out " ?
ChatGPT's output will only be as good as the
prompt. For example, don't ask, " What conference
should I attend? " With that question, ChatGPT's
response was: " To recommend a conference,
I need more information. What industry or field
are you interested in? "
Instead, try: " I am a financial advisor who owns
my own practice. I am planning my conference
schedule for 2024 and want to attend the top
conferences focusing on technology for financial
advisors. Please recommend three conferences
to be held in the US during 2024. " This prompt
generated three conference recommendations but
with bare-bones information about each.
gEstablish context and ask for how you want the
answer formatted. In the above example,
let's say I want to recommend conferences to my
study group. I might say, " Please format the
response as an email I can share with my study
group colleagues recommending these
conferences. " This resulted in a formatted email
describing each conference.
gRefine until you get the response you want.
I started by asking about a conference, gave more
information to identify conferences relevant
to my needs, and then asked for a specific format
for the response.
gDon't assume that ChatGPT provides accurate
answers. Double-check all information.
gDon't claim ChatGPT's words as your own-
especially if you plan to use it for publication
or client communication. As with any
content, use the results as an input to your
work, not verbatim.
For these examples, I used the free version of
ChatGPT, which runs on GPT-3.5. You might find
the paid version, ChatGPT Plus, a worthwhile
investment at $20 a month. Powered by GPT-4,
ChatGPT Plus has a broader and more up-todate
knowledge base, and it browsed the
web using Bing. It also gives users priority access,
faster response times, and access to custom
GPT bots.
Alternatives to ChatGPT
gGoogle's GOOG Gemini, formerly Bard, operates
similarly to ChatGPT. I also asked Gemini about
advisor conferences. It provided much more
information about each conference than did
ChatGPT, including detailed descriptions,
highlights, and their 2024 dates and locations.
gChatsonic is similar to Gemini. It provided a list of
conferences with dates and locations and gave
" why attend " synopses of each.
gMicrosoft MSFT Copilot (formerly known as
Bing Chat) offers ChatGPT-4 technology for free
and integrates the Bing search engine.
How do you know which one to use? Try
them! Use more than one to compare results.
Other Types of AI Tools
Besides these chatbot-style tools, there are
other AI solutions that are also suitable for use
by financial advisors:
gSales Cloud Einstein is the turnkey AI solution
from Salesforce CRM. It provides client
data insights, leads prioritization, and analytics
to assist in the sales cycle.
gAdobe ADBE Marketo Engage claims to be
the world's largest marketing automation platform,
providing customer-driven communications
that includes email, social media, paid media, texts,
and events. The platform also enables customized
content using in-depth profiles and real-time
behavioral and demographic data. The solution
also integrates with CRM systems and provides
marketing insights.
gHubSpot covers many areas of client engagement
and internal work processes through a single hub,
including task automation, client insights,
workflow streamlining, content generation, and
data analysis.
AI Tools Specifically Built for Financial Advisors
The current crop of AI tools made for financial
advisors is the tip of the iceberg compared with
what will eventually be available. Wakeman, of
WealthTech Strategy, says advisors should consider
tools other than portfolio-management solutions
( " since advisors feel comfortable creating
portfolios " ). Instead, advisors need tools that help
with other tasks, such as prospecting, customer
engagement, and compliance.
Bruckenstein says that current AI tools are
designed to solve a single problem. " We're
at the very beginning of what AI solutions will be
developed, " he says. Bruckenstein finds two
programs especially appealing: FP Alpha and
Conquest Planning. FP Alpha provides advanced
planning by uploading client records such
as tax, insurance, and legal documents.
It produces visual reports and recommendations
advisors can use to demonstrate their value.
It claims to supplement, not replace, traditional
planning software.
Conquest, created by Mark Evans, the founder of
NaviPlan, uses a digital assistant, named SAM,
that combines client data, financial strategy best
practices, and client preferences to create
financial plans, action items, and visuals that are
updated on an ongoing basis.
Two tools that made a splash at Bruckenstein's
T3 conference in January were Sora Finance
and Powder.
Sora Finance, which won the 2024 T3 Emerging
Technology Award, allows advisors to provide clients
with full debt-management services. Sora uses
AI to predict when clients will incur debt and alerts
advisors when it might be time to refinance
debt. Most useful is the ability to scan hundreds
of lenders, choose the best offer for clients, rate
the likelihood of loan completion, prequalify clients,
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gHypotenuse AI is a writing assistant that uses an
interactive process to help users produce content
that " sounds like you. " Other content-creation
tools include Frase, Jasper, Claude, and Writer.
gMagic Design and Highcharts GPT are visualization
tools that help create graphics and charts.
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Morningstar - Q2 2024

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