AI will never replace the fundamentals of Financial Intelligence

There has been a lot of controversy about AI recently and innovations like ChatGPT have been responsible for people striking in protest and even for governments examining if a future utilising all the elements of AI is a good one.

There is no doubt that in medicine and many other fields AI and robotics have been revolutionary in assisting to advance certain industries and when it comes to finance there will be certain AI applications that will assist people to conduct better forecasts of shares and be of great assistance in certain areas of finance and accounting.

One thing that is for sure though, is when it comes to wealth creation Artificial Intelligence will never be able to change the essence of what people aspire to and why they build wealth at all. Simply making money for the sake of it is really not why most people try to get rich, there is a much more of human element to it – or an Emotional Intelligence element (E.I) if you’d like to call it that.

There is Financial Intelligence too.

Good financial Advisors understand this human element and in fact it forms the basis of constructing a good wealth profile that serves someone throughout life’s most unexpected twists and turns. We call these fundamentals of wealth creation ‘Financial Intelligence’ and the fundamentals of Financial Intelligence all revolve around human feelings and choices. Some of these are…

Long term thinking

Critical to wealth creation is adhering to the basics of compound interest and this involves deciding to invest in the long term and have the resilience to remain invested when things get tough. AI may be able to make long-term projections based on past performances, but it can’t convince someone to have the Financial Intelligence to start investing for the future as soon as possible, and stick with it.

Health and wealth preservation

One of the most basic human instincts is one of survival and Financial Intelligence means looking after your health, including having medical aid cover and Critical Illness cover. To ensure your wealth is not eroded in times of poor health it’s prudent to have income protection too.

AI may be able to assist Medical Aid providers by crunching the numbers to assess what they can afford to cover or not cover, but it can’t convince somebody to protect their and their family’s health and subsequently their wealth.

Leaving a legacy

AI may be able to assist Financial Advisors and Actuaries to calculate your wealth in a certain number of years based on your current progress etc, but the reality is that life itself is not predictable. What AI can’t do is convince a human being to at least have Life cover (which is very affordable) and the responsibility to draft a legally binding Will. Additionally, through Estate Planning, they can leave the best legacy possible for their remaining family. This kind of human decency way surpasses any kind of artificially created assistance.

Understanding that we are individuals. 

What AI dismally fails to do is to individualise its offerings, whether they be mathematical or seemingly creative it is the same information spewed out for all, regardless of who inputs it. For us in Hereford Group this is a massive flaw as we have prided ourselves over the last 30 years on understanding that every individual and business is unique and has their own specific needs and aspirations.

Talk to us about your personal requirements and let us assure you, Artificial Intelligence may be in the background assisting us as a useful tool, but we will be serving you as a human being with fundamental Financial Intelligence!


Submit a Comment

Your email address will not be published. Required fields are marked *