Blog > Practice Management > Capitalizing on Artificial Intelligence: Opportunities to Grow Your Firm Webinar Recap

Capitalizing on Artificial Intelligence: Opportunities to Grow Your Firm Webinar Recap

About this session:

This webinar focused on the use of artificial intelligence (AI) in wealth management and investment strategies, with a particular focus on the potential opportunities and challenges it presents. It also discussed the role of Opto Investments  in providing access to private market investment opportunities, and how AI can be used to enhance these investment strategies.

Insights Surfaced:

  1. AI presents a significant opportunity in wealth management and investment strategies, particularly in the private market space.
  2. There is a lot of hype around AI, but it is not a bubble. Instead, it is a real opportunity with intrinsic value and realistic growth expectations.
  3. AI can be used to enhance existing investment strategies, particularly in the areas of profiling and communication, compliance and reporting, and data management.
  4. It is still early in the AI lifecycle and more development is needed before it can be fully integrated into wealth management systems.
  5. The regulatory environment is also a consideration, with the SEC emphasizing the need for a human in the loop and the ultimate responsibility of the human for AI actions.

Meet the Speakers

Jacob Miller, Co-Founder, Opto Investments

Jacob is a co-founder at Opto, and runs its Advisory practice. He works directly with our clients, is actively engaged in our investment committee, and drives the development of investment frameworks.

Jacob was previously at Bridgewater Associates, but has been managing money for family and friends since he was 16. While he has a background in macroeconomics and high-yield debt, he finds the challenges and opportunities in the private markets space far more interesting and important for investors.

Matt Malone, Head of Investment Management, Opto Investments

Matt is Opto’s Head of Investment Management, overseeing all its investment activities, fund structuring, and product development.

Matt has over 15 years of experience across all aspects of alternative investments. He has served as Chair of the CFA Society of Washington DC and President of the Alternative and Direct Investment Securities Association, and is a CFA charterholder and licensed attorney.

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Takeaway 1: The relevance of AI in the investment landscape

Artificial Intelligence has been creating a buzz in various industries, including investment, with its potential to revolutionize processes and create efficiency. The speakers explored the significant role of AI in the investment landscape, focusing on its potential in augmenting human capabilities, rather than replacing them entirely.

Matt Malone emphasized that AI is not about replacing human roles but about enhancing them. “We think there are many opportunities where these tools can help scale the human element by really augmenting existing capabilities versus a wholesale replacement.”

Jacob Miller further echoed this viewpoint, shedding light on how AI could potentially speed up processes and tasks that would typically be time-consuming. “We’re seeing more and more models come out that are more specific and can run more. There’s going to be a lot more compute needed to run them. So the demands are going to continue to expand for infrastructure and there are ways to try to play that through infrastructure and real estate strategies.”

Takeaway 2: The potential for major growth in AI investment

Artificial Intelligence is seen as an area with significant potential for growth and a great opportunity for investors. The panelists noted that the introduction of AI in various sectors, from biotech to defense, creates opportunities for significant returns on investment.

“There are opportunities that exist today that certainly did not exist five years ago, which is what we look for on the cutting edge of innovation, with real world use cases and value they can add to the world,” said Matt Malone.

Jacob Miller added, “So I think. We’re seeing things move in that direction. I think that it’s also an interesting time for investing because that means there’s a lot of opportunities for people to create specialized tools to create this infrastructure to build sort of the next wave of innovation.”

Takeaway 3: The regulatory implications of AI in wealth management

While AI presents promising opportunities, the speakers discussed the importance of regulatory considerations in wealth management. They highlighted that despite the advanced capabilities of AI, the human element still plays a crucial role in maintaining the fiduciary duty towards clients.

Matt Malone touched on the importance of human oversight in utilizing AI tools, stating that “the human is still necessary.” He mentioned an incident where a lawyer used AI to generate precedent cases, but failed to verify the AI’s output, leading to the citation of non-existent cases.

Jacob Miller emphasized the regulatory perspective, stating that regardless of AI’s capabilities, there is always a need for human intervention. “I think what the regulators are basically saying is no matter how good AI gets, there needs to be a human in the loop, and the human is ultimately responsible for what that AI is doing with regards to client interactions.”

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