Systems that provide automated investment advice from financial firms have been referred to as robo-advisers. While no one in the industry is particularly fond of the term, it has caught on nonetheless. However, the enhanced human advising process — augmented by machine learning — that was recently announced by Morgan Stanley goes well beyond the robo label, and may help to finally kill off the term.
How Machine Learning Is Helping Morgan Stanley Better Understand Client Needs
Systems that provide automated investment advice from financial firms have been referred to as “robo-advisers.” However, the enhanced human advising process — augmented by machine learning — that was recently announced by Morgan Stanley goes well beyond the robo label, and may help to finally kill off the term. The “next best action” system at Morgan Stanley is focused on three separate objectives — only one of which is common in the robo-adviser market. It includes providing operational alerts, as well as content on life events. If, for example, a client had a child with a certain illness, the system could recommend the best local hospitals, schools, and financial strategies for dealing with the illness. This service has the potential to help create a trusting and value-adding relationship between clients and financial advisers.