Have you ever followed a GPS detour to avoid traffic, only to end up in a line of cars—everyone taking the same route? 🚗
It felt like a unique decision, but in reality, every GPS gave the same suggestion. What seemed like a smart shortcut quickly became the default path.
The same is happening in wealth management with AI.
Firms increasingly rely on similar AI-driven tools, using the same data, models, and risk systems. While AI promises smarter investing, it can also lead to algorithmic herding—where many players make the same decisions, reducing real competitive advantage.
The Risk of Standardised Thinking ⚠️
- Over-Reliance on Algorithms – Markets may become predictable and less efficient when everyone uses AI similarly.
- Speed Beats Strategy – If investment ideas are similar, only the fastest execution wins.
- Copy-Paste Portfolios – AI should support innovation, not deliver uniform outcomes.
I once avoided traffic by taking a detour, and at first, the mix of cars seemed random. But after a few turns, something strange happened—I found myself driving through a residential area surrounded only by one brand of car. It felt like a choice, but something had sorted us out without us realising.
AI Should Drive Differentiation
AI is a tool, not a strategist. It reflects the way we train, guide, and apply it.
- Build custom AI models based on your firm’s unique approach
- Use alternative data to uncover hidden insights
- Let human expertise guide the final call
What’s Next for AI in Wealth Management? 🔮
If everyone follows the same signals, true AI innovation disappears. But when used creatively, AI can help firms move faster, make smarter decisions, and build real differentiation.
💡 The future belongs to those who train AI to think more innovatively—and differently.
Source: LinkedIn
