Retirement plan advisors looking to take advantage of artificial intelligence to help them “work smarter” have a couple of new tools to consider as of today.
RiXtrema, a New York-based developer of tools for financial advisors and plan advisors using machine learning (AI) and data science, today announced the availability of two new AI-driven productivity tools: AdvisorAI and 401kAI.
According to a press release announcing the new tools, AdvisorAI and 401kAI incorporate powerful data capabilities that allow subscribers to rapidly gather pertinent information, get summarization and analysis in minutes, and then quickly create custom emails and call pitches.
401kAI capabilities
401kAI is a tool for advisors to use as they prospect and seek to win the business of plan sponsors. It contains detailed data on 850,000 retirement plans, with full information on all current laws, regulations, and legal cases, and is integrated with compliance tools. 401kAI can summarize dozens of plans with one click, help write custom emails for the plan, and create effective calling pitches for a plan.
It analyzes any plan in two minutes and offers an executive summary. Each summary incorporates all of a plan’s filings, with 401kAI choosing the most important points. Advisors control the length and style of the summary, and can regenerate summaries for a plan, as many times as needed, to get a perfect one.
“If an advisor were to analyze a plan themselves, the filings alone could be 50 pages long,” said Daniel Satchkov, founder and president of RiXtrema. “To summarize a plan could take hours. Now imagine you have hundreds of plans that you prospect. 401kAI allows advisors to access all the data about qualified plans in the U.S. Once logged into 401kAI, they simply go into a plan and say ‘Summarize this plan for me.’ The algorithm goes through all of the data, all of the filings, and in just minutes gives you all the key points about the plan in one executive summary. When one of our clients saw that, they said it’s like getting three hours of work done in 10 minutes.”
401kAI can draft emails, incorporating specific data about the plan (i.e., plan red flags, ratings, deficiencies, history of participants and assets). Every email can incorporate the advisor’s services and highlights of their biography. Emails can focus on plan problems, recent legal cases, and regulations. Advisors can regenerate emails for a plan as many times as needed to get a perfect one.
“401kAI has the capabilities of ChatGPT, but also knows details of 850,000 retirement plans. The unfortunate part of ChatGPT is that it only has information up to 2021, nothing beyond that. People think about ChatGPT as the machine that talks, the machine that speaks. But, really, it’s like a parrot—a very well read parrot—but only on information up to 2021,” Satchkov said.
AdvisorAI capabilities
AdvisorAI is a tool for advisors to improve productivity with portfolio analysis and creation of custom emails and calling pitches. According to RiXtrema, the tool summarizes all aspects of portfolio risk in one click, drafts custom emails for each lead, learns in detail about each lead’s financial situation, knows services the advisor can offer to get a meeting, and is integrated with their compliance tools.
AdvisorAI can draft emails that incorporate a client-specific portfolio, financial information and detailed analytics on each investment. Every email can include the advisor’s services and highlights of the biography. Emails can focus on plan problems, recent legal cases, regulations, portfolio risks, asset contributors to risk, personal financial situation and risk capacity, and advisor competencies.
AdvisorAI analyzes portfolio risk and the client’s situation in two minutes and offers an executive summary. Each summary incorporates investments, contributors to risk, top scenarios where a portfolio loses money, and client’s financial situation. The advisor controls the length of the summaries, and can regenerate summaries focusing on different aspects of risk and client situations.
“With AdvisorAI, if you have a statement or document from a client that you need to read or summarize, you can upload into AdvisorAI and select the option, ‘Summarize this document for me. Give me all the mutual funds that are mentioned in this document. Give me their expense ratios.’ Instead of an advisor reading through and working with these documents, client statements, or filings, with AdvisorAI, they can have a summarization of the data in minutes. This leaves the advisor time to do the human part of the work—interacting with the client,” Satchkov said.
Both 401kAI and AdvisorAI include a mobile app. The importance of the mobile app is that it allows advisors to get back to people quickly and increase the chances of winning business.
“The main purpose of the mobile app is not to sit there and try to actually do work on the phone,” Satchkov said. “The purpose of a mobile app is when you’re on the road, to be able to get notifications quickly and be able to give an informed response right away.”
Satchkov added that tools like 401kAI and AdvisorAI are built to cut down the time advisors spend on drudgework. “Advisors who don’t adopt this technology are going to find themselves way behind very quickly,” he said.
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