In an interview with WealthManagement.com, Celent analyst William Trout opines on the impact of artificial intelligence and cognitive technologies on the wealth management sector and the financial advisory space.
According to Trout, “AI is particularly powerful in cases where there is information asymmetry or a gap in knowledge between buyer and seller. This gap has historically been visible around asset classes like commodities or around certain types of stocks, like those of retailers. Satellites that can peer down on crop growth in Iowa or the Wal-Mart parking lot can deliver data that can be used to extrapolate prices or profit margins, for example. These advantages are much more difficult to realize in cases where information is closely held or unavailable, as in the case of private equity.”