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TECHNOLOGY Technology is revolutionising the financial services industry by enhancing efficiency, security and customer experience, and driving innovative solutions and growth. Page 9 – 14 DREAD DISEASE Cover for Dread Disease is crucial as it ensures peace of mind and access to necessary medical treatments in times of need. But do your clients fully understand its importance? Page 18 – 19 OFFSHORE INVESTING Offshore investing remains essential for diversifying portfolios and reducing risk. We take a look at what’s happening in this sphere in light of the current trading environment. Page 22 – 25
30 June 2024
@MoneyMarketingSA
First for the professional personal financial adviser
The New Paradigm: How AI is redefining financial advising BY KOBUS BARNARD CEO at Allegiance Consulting
A
I has shattered boundaries once thought exclusive to human intellect: passing the Bar and Medical Licencing exams, mastering multiple languages, and revolutionising scientific research with breakthroughs in protein folding and drug development. From defeating world champions in chess to creating stunning art and composing original music, AI’s prowess extends to strategic thinking, creative expression and beyond. Its transformative impact on financial analysis, market prediction and customer service underscores AI’s role as an unparalleled force of innovation and progress. It passed the Bar exam, the exam required to practise law in the United States. To pass the exam, the AI had to be able to do complex legal reasoning, consider ethical dilemmas and case law analysis, showcasing its ability to understand and apply intricate legal principles. This was done by a machine that passed in the 90th percentile of all lawyers. AI systems have participated in live debates with humans, constructing coherent, persuasive arguments and responding to counterarguments in real time. This demonstrates advanced understanding, reasoning, and rhetorical skills. AI models have excelled in video games such as StarCraft II and Dota 2, where strategic thinking, real-time decision-making and teamwork are crucial. These achievements highlight AI’s ability to handle dynamic environments and long-term planning.
Alice in a financial wonderland Financial services are not immune to AI. In 2001, an article titled ‘Surviving the Future’ appeared on the cover page of MoneyMarketing, where the writer envisioned a world where artificial intelligence (AI) would revolutionise financial services. At the time, the idea of AI-driven financial advisers seemed like science fiction. Fast forward to today, and that vision is becoming a reality, fundamentally reshaping the financial advisory landscape. This article explores how AI is changing the foundation of financial advising, emphasising that it is not a threat but a business imperative. It also outlines the evolving role of financial advisers and the end of the era of product pushers. The evolution of financial services In 2001, AI was in its infancy, and the notion of AIdriven financial services was speculative. Today, AI has permeated every aspect of our lives, including financial services. The ability to perform complex financial calculations, predict market trends and provide personalised advice has become a reality, thanks to advancements in machine learning, natural language processing and data analytics. The shift from an agricultural to a knowledge-based economy has been profound, and we are now witnessing the dawn of a new era in financial services.
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Laurium Capital (Pty) Ltd is an authorised financial services provider (FSP 34142).