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At the outset of Designed Securities, there were many numbers of possible avenues in which to find success. As an independent dealer, by all definitions, we sit on an island all on our own. We had taken considerable steps to ensure our view of independence was loud and clear, but to differentiate means more than defining one element of our value proposition. As time has passed, we have found meaningful ways to connect with our target advisor audience. Our commitment to transparency and accountability with advisors has had a tremendous impact on the transitioning of experienced advisors who have years of ideas to share, and who are engaged in pushing the industry forward.
Our millennial advisors are resonating with our commitments to flexibility and collaboration as they seek to build for the long term. Our progressive thinking is another area the permeates through our culture, and there is nothing more progressive than embracing Artificial Intelligence (AI) in our business model, and our progress and pivot thinking are putting us as the leader of the pack.
In the 1990’s, Michael reflects on the introduction of the internet when business was slower paced, with less immediate access to information and fewer opportunities to grow organically. Until now, there has been no other major inflexion point. While search engines help find simple information, AI assists us in the context of our work environment. Yes, technology has developed, but AI is a significant advancement that helps us summarize documents, catch up on communications, generate drafts of emails and documents, transcribe meetings, etc. Widespread societal acceptance still needs to shift significantly to bring the entire value chain into alignment. As an example, there is still some resistance to digital signatures, virtual meetings, and other things that improve efficiency and productivity despite that those advancements have been in place for decades. Additionally, virtual infrastructure foundations are not entirely established. In essence, there is no turnkey package on adding AI to your roster.
At Designed, we adopted AI first as a cultural shift. No AI tool, idea or strategy will result in meaningful impact if there is no buy-in from the team. “Thinking” is hard to change which is why we choose to take intentional steps to explore as a team. Our team can approach AI with their own curiosity and gain personal insight to share, while also gaining tangible experience with AI applications. In turn, mindset can pivot, which is a huge part of AI acceptance. We’ve taken steps forward only to take several steps back as we see AI unfold. Just as “email” was once a progressive form of communication, we’re putting staff in the hot seat to help support the next generation of wealth managers and their teams with ideas for integrating the technology of the future.
AI readiness does not mean AI is used as a chat bot, or human interaction is being replaced at Designed. With commitments to high service, and a desire to interact and collaborate with advisors, AI isn’t about replacing those engaging experiences. It’s about comfort in the hands of those who can use it to enhance those engagements. Imagine being able to do much of your job in half the time. The other half of the time can be used to explore fresh ideas and tend to all the little things we never have time for. The things that take creativity and critical thinking. AI readiness means cultivating those thinking habits, not replacing humans with robots.
Much of the industry is, however, doing just that. We’ve seen a jump to AI to the exclusion of real people. Chat bots become the new service option all too soon. Answers are inconsistent, user experience is poor, and advisors seeking help are faced with a black hole. We don’t argue that chat bot functionality isn’t part of the future, but it fails to look at AI holistically, and only highlights a dinosaur dilemma. The changing investment industry landscape needs real consideration, not fast conclusions.
We also perceived conflict to need a new lens. The impacts of AI on conflicts are not well understood in the investment landscape. At what point should clients be made aware of the use of AI? What are the new perspectives of conflicts that need to be captured? For instance, did AI generate this article? If it did, should we have to tell anyone?
As with the 2023 convergence of the industry regulators to create CIRO, Designed was the first dual registered firm approved in Canada, and while all takes time, no change is too soon to embrace. The keys to AI implementation are adaptation and learning. At Designed, we are positioned well to be the dealer of the future.
