Yes to AI, but not for portfolio selection

Like most industries, wealth management has big plans for AI.

Some firms are holding out the hope that AI and similar systems will eliminate "no-joy work." Others think AI can provide timely reminders for reaching out to clients. Still others are relying on the technology to draw up quick summaries of meetings with investors.

Curiously, of the many proposals for using AI in the industry, very few seek to put it in charge of portfolio selection. Some of this reluctance doubtlessly stems from a proposed SEC rule calling on advisors to "neutralize" any conflicts of interest buried in AI-produced advice.

As Joel Bruckenstein, the president of Technology Tools for Today, or T3, pointed out: No one really understands why AI makes certain startements. So good luck discovering conflicts of interest, let alone figuring out how to neutralize them.