Last July we wrote a piece (Advice from an Empathetic Watson) looking forward to the day when an artificial intelligence front end would be integrated with a robo-advisor to create a next generation digital investing experience. Well that day has come.
This past week, Marstone, an advisor-facing robo-advisor available through Pershing, announced a partnership with IBM’s Watson for Wealth Management. According to press reports, Watson will help advisors (and then end clients) through the process of “planning and managing data, analyzing behavior, identifying trends and being predictive.”
We expect this development to be just the first step in the enriching of the wealth management experience through advanced technologies. As with other professionals like doctors and lawyers that solve specific new challenges based on large experiential data caches, wealth managers are likely to benefit from tools like Watson that become increasingly adept at just this process. It is also likely that as the artificial intelligence interface with end clients is perfected, self-directed investors will see important benefits as well.