The launch of ChatGPT in November 2022 made artificial intelligence ubiquitous. Now, it seems like tech is on everyone’s lips, and there are countless headlines of venture capitalists and institutions making investments. For example, Stanley Druckenmiller’s family office recently put almost a half billion ($430 million) into Nvidia and Microsoft stock on a big bet for AI technology. But truth be told, artificial intelligence (AI) and machine learning (ML) have been around for decades. Google Maps’s navigation system uses AI to analyse traffic and determine the best routes. And email spam filters use the same technology to keep junk mail out of your inbox.
AI is improving wealth and risk management and automating routine tasks for family offices. It presents the next frontier for the digitisation of business operations. This insight explores some of the use cases of artificial intelligence, examines its limitations, and suggests how the new technology can benefit family office operations.
Use cases for AI in family offices
According to the CFA Institute, AI can streamline investment portfolio management and optimise returns. It can conduct a robust fundamental asset analysis by processing vast amounts of text-based information. Furthermore, it can also perform asset allocation and provide better return estimates than conventional methods.