By Teresa Leno, CEO and Founder of Fresh Finance
The intersection of Generative Artificial Intelligence (AI) and social media has become a hot topic in wealth management. As technology advances rapidly, wealth firms must understand Generative AI and how its use to create content may impact their business.
First, let’s define what generative AI is. Simply, it is a type of AI that can create new content, whether text, images, or videos, by learning from existing data. Rather than relying on pre-programmed rules and instructions, generative AI can independently think and generate new content.
Social media platforms are constantly inundated with vast content, making it difficult for firms to stand out; Generative AI can help. However, as simple as using AI may be, it’s more complex than one expects when used in a regulated industry like wealth management.
Advantages of Using Generative AI
Wealth firms can create content for their social media channels by leveraging generative AI to create infographics, videos, and even written content that caters to their target audience’s specific interests and needs and assists in attracting new clients. AI can create content that helps enhance wealth firms’ credibility and thought leadership.
Another aspect to consider is the tone of voice used in social media content. With generative AI, wealth firms can customize and refine the tone of voice used in their social media posts, which is beneficial when targeting different demographics and age groups. For example, posts directed towards the younger demographic may require a more casual and conversational tone, while posts aimed at older individuals may require a more formal and professional tone.
Moreover, generative AI can also assist with social listening, which involves monitoring and analyzing social media conversations related to wealth management. By understanding the sentiment and discussions surrounding a particular topic, wealth firms can tailor their content to address any concerns or misconceptions of their target audience.
However, wealth firms must note that while generative AI can enhance their social media presence, it should not replace the human touch. Firms must still have a team of professionals to curate content alongside AI-generated content to ensure compliance; in other words, AI still has a long way to go in the wealth industry.
Disadvantages of Using Generative AI
Wealth firms must be aware of privacy and ethical considerations when using generative AI to ensure that the data used by AI is collected ethically and transparently and that the content generated does not infringe upon any privacy laws.
AI can enhance writing content, but problems exist if the chat GPT tool doesn’t override red-flag words with compliant ones. Therefore, wealth firms must seek a tool either developed for the industry or capable of adapting quickly (learning) based on the user’s directive in correcting the AI-generated content.
Using generative AI images remains challenging due to the complexity of compliant versus non-compliant imagery. For example, images depicting currency (in any form) from the U.S. and foreign governments are prohibited. Golden eggs in a nest and suggestive photos that may persuade an investor are not allowed.
In conclusion, generative AI and social media can be powerful for wealth firms looking to elevate their online presence and attract potential clients. With the ability to create personalized and tailored content, firms can effectively communicate their uniqueness and connect with their target audience. However, it is crucial to utilize generative AI ethically and with human knowledge to achieve the best results. As generative AI technology advances, wealth firms must stay informed and adapt according to industry standards so that whatever they create for social media is compliant.
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Teresa Leno worked as a financial advisor and experienced firsthand the importance of financial education to help clients make more informed decisions before a crisis. Through her experience, Fresh Finance was started as a financial content marketing solution to help advisors validate their expertise through sharing content.
