Artificial Intelligence (AI) is rapidly transforming various industries, and the financial sector is no exception. Eric Kish, a Tarentum resident, has witnessed AI’s efficiency firsthand through his work at a local insurance agency. “It makes processes go quicker — 24 hours a day as opposed to 9-5 when you have to talk to someone,” he said, highlighting the reliability of AI.

AI’s ability to spot fraud has had a significant impact on the financial industry. Mandell Loman from Citizens Bank explains, “AI doesn’t eliminate fraud, but allows the system to pick up and learn how a cardholder uses their cards.” This capability helps banks identify fraudulent activity by understanding customer spending patterns.

Challenges and Governance

Despite its benefits, AI presents challenges. Trebor Evans from Dollar Bank emphasizes the need for governance over AI, especially when machines make decisions. “That’s part of the dangerous point that you have to have governance over,” he said. This concern is echoed by individuals like Cheryl Kopaczynski, who are wary of technology being used against them.

Investment Decisions and AI

AI’s role in investment decisions is evolving. While AI can assist financial advisors by handling mundane tasks, it is not yet making investment recommendations. Morgan Stanley’s AI tools, developed with OpenAI, enhance advisors’ efficiency without replacing their expertise. Vince Lumia from Morgan Stanley highlights the potential of AI to revolutionize advisors’ daily tasks.

Accessibility and Financial Planning

AI is making banking and financial planning more accessible, especially for those unable to afford traditional financial planners. Douglas Raible from Sterling Heights Financial Group believes AI democratizes financial planning by providing tools for budget conversations. “It helps the average, everyday person,” Raible said, though he emphasizes the importance of maintaining personal touch in customer service.

As AI continues to integrate into the financial industry, its role as a financial advisor remains a topic of discussion. While it offers efficiency and accessibility, human oversight and personal interaction are still valued by many.

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