AI solutions offer a nuanced approach to managing the tariff-driven market

AI solutions offer a nuanced approach to managing the tariff-driven market, says M-Files

The tariff regime announced by Trump has sent markets reeling in the last 10 days and though the UK is not the foremost target of these measures, it’s vulnerable to ripple effects. The recent retail attacks have now grabbed headlines and businesses are being reminded that vulnerabilities can have a tangible impact on day-to-day operations.

‘The tariff fueled rift between the world’s two largest economies serves as a reminder as to how quickly sentiment can switch in markets. Given the market unpredictability and cyber disruptions, clients – unsure of their next steps – will turn to wealth managers to advise them about their strategy during this period of extreme uncertainty,’ said Yohan Lobo, Senior Industry Solutions Manager, at M-Files.

‘Advisors are already stretched thin, managing portfolios, compliance and 60-70% of their time is being spent on non-advisory activities rather than fostering positive client relationships. In a rush to manage this, firms may implement various AI solutions but these solutions can be counterproductive.

‘Areas of AI, such as valuation assumptions and adjustments are predicated on future expectations that can be highly unpredictable. In order to avoid any ill-advised portfolio adjustments in response to short-term turbulence, firms should only apply AI into necessary areas of business such as productivity or portfolio enhancing tools to improve efficiency and prevent further wealth fallout.’

While providing bespoke advice and guidance is the standout feature of wealth management firms, Yohan pointed out the bottleneck that can be created through manual tasks and customer information management stored in multiple disconnected systems.

‘Client demand and service expectations grow during uncertain periods in the markets therefore, wealth managers will need connected systems that are curated with client information management in mind so advisors can spend less time on locating or creating documents, and more on client relations.

‘Integrating AI into simple tasks such meeting summaries & emails, proposals and routine administrative duties, is a cost-effective tool that can provide efficiency gains, reduce human errors, and reduce time spent on document management. This will give advisors the capacity to focus their efforts and resources on high-impact initiatives.

Yohan continues to describe the most beneficial aspect of AI for firms; analysing both real time tariffs changes and historical data insights for more accurate advice.

‘The severity of these tariffs and breaches might cause stress and concern with clients over their future wealth, prompting clients to make panicked decisions. However, firms can use AI to monitor and understand impacts in real time and also gain insight into clients’ spending and saving patterns.

‘In doing so, advisors can create bespoke strategies to help their clients navigate uncertainties. By curating highly personalised advice, wealth managers will be able to provide regular and targeted communication that will keep emotion-based decision making at bay.’

‘AI can also be especially helpful as chatbots. In a time where market instability is the new norm, many clients have the same concerns during trade tension spikes and simply require reassurance over their wealth management. Instead of overloading advisors, AI chatbots can provide consistent responses to routine queries that are backed by firm-approved data and current economic trends. This defuses routine concerns so that human advisors can focus on more strategic, high-touch conversations.

‘For complex questions, AI chatbot can recognise and escalate the issue to a wealth manager. This ensures clients are receiving the correct information and strengthens relationships by combining efficiency with empathy.’

Yohan concludes, ‘as global order and geopolitical arenas become increasingly unpredictable, the ability to navigate these shifting dynamics will be critical for success. AI can refine customer services and workflows but the key to success lies in how it is applied. Most firms need solutions that meet you where you are and work inside the tools and workflows you already use.

With the right AI solutions, wealth managers can craft personalised financial plans and provide bespoke advice that allow firms to confidently advise clients about their strategy during this period of extreme uncertainty.’

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