It’s generally accepted that financial and retirement plan advisors are typically well behind the technology curve—preferring a late adopter approach to avoid (among other things) compliance and litigation exposure.
While once understood—and accepted—artificial intelligence (AI) is making it much more complicated. The sheer magnitude of the technology’s impact and the rapid change it’s causing means a conservative, wait-and-see approach is no longer feasible.
“Advisors who don’t adopt this technology are going to find themselves way behind very quickly,” Daniel Satchkov, President of New York-based fintech firm RiXtrema, said. “This will not take years because the technology is not new.”
Satchkov’s firm is taking advantage of large language models (LLM) like ChatGPT to offer plan advisors a serious productivity upgrade, going so far as to claim 10 times the advisor output by employing two of its products.
The first, 401kAI contains data on 850,000 retirement plans, with “information on all current laws, regulations, and legal cases, and is integrated with compliance tools.” Satchkov said it can summarize dozens of plans with one click, help write custom emails, and create compelling calling pitches for a plan.
Employing LLM, 401kAI can also supposedly analyze any plan in two minutes and offer an executive summary. Each summary incorporates all of a plan’s filings, with 401kAI choosing the most critical points. Advisors control the length and style of the summary and can regenerate summaries for a plan as many times as needed to get a perfect one.
“If an advisor were to analyze a plan themselves, the filings alone could be 50 pages long,” Satchkov said. “To summarize a plan could take hours. Now imagine you have hundreds of plans that you prospect. 401kAI allows advisors to access all the data about qualified plans in the US. Once logged into 401kAI, they simply go into a plan and say, ‘Summarize this plan for me.’ The algorithm goes through all of the data and filings and in just minutes, gives you all the key points about the plan in one executive summary. When one of our clients saw that, they said it’s like getting three hours of work done in 10 minutes.”
AdvisorAI is a tool for advisors to improve productivity with portfolio analysis and creation of custom emails and calling pitches, he explained.
The tool summarizes portfolio risk, creates custom emails for each lead, learns in detail about each lead’s financial situation, knows services the advisor can offer to get a meeting, and is integrated with their compliance tools.
AdvisorAI can draft “eloquent emails, saving hours each month.” Every email incorporates client-specific portfolios, financial information and detailed analytics on each investment. Every email can incorporate the advisor’s services and highlights of the biography. Emails can focus on plan problems, recent legal cases, and regulations. Emails can focus on portfolio risks, asset contributors to risk, personal financial situation and risk capacity, and advisor competencies.
AdvisorAI analyzes portfolio risk and the client’s situation “in minutes” and offers an executive summary. Each summary incorporates investments, contributors to risk, top scenarios where a portfolio loses money, and the client’s financial situation. The advisor controls the length of the summaries and can regenerate summaries focusing on different aspects of risk and client situations.
“With AdvisorAI, if you have a statement or document from a client that you need to read or summarize, you can upload it into AdvisorAI and select the option ‘Summarize this document for me,” continued Satchkov. “'Give me all the mutual funds that are mentioned in this document. Give me their expense ratios.’ Instead of an advisor reading through and working with these documents, client statements, or filings, with AdvisorAI, they can summarize the data in minutes.”
