NewsNTech
The advisory model in wealth management prices information asymmetry. Clients retain advisors because financial analysis requires credentials and professional judgment they cannot efficiently generate themselves.
Large language models are now available to those clients directly, and the question the industry is confronting is which parts of the advisory value chain survive when clients begin doing preliminary analysis on their own.
A general-purpose large language model runs on a consumer device, at any hour, without the fee structure that advisory relationships carry.
What it delivers at that cost point is financial framing that advisors have historically charged to provide. Wealth managers are not competing against a rival firm.
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