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AI Won’t Replace Financial Advice

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Recent Microsoft research identified financial advice as one of the 40 occupations that generative AI is most capable of replacing. But, as reported in a recent WealthManagement.com piece, many financial advisors disagree, citing that AI can’t replicate the human connection.

So, who’s right? The answer is both.

Ask and you will receive. The core superpowers of AI are retrieval speed and pattern recognition, which pose a real threat to transactional advisors. Ask AI a question or give it information, and AI will converse with you. It will ask follow-up questions, respond to further directions to tailor a response and ultimately, AI will offer recommendations. In short, it will advise you in a way that fundamentally mimics the “discovery and prescribe” client engagement process many advisors use. A transactional experience that isn’t defined just by intent but by process. Tell me everything about you and I’ll make recommendations.

While AI lacks the human connection, consumers might instead see this as reducing the human connection risk that comes from engaging a financial advisor. Not all advisors have the client’s best interest in mind, and as an industry, we’re consistently ranked as one of the least trusted.

So yes, AI could replace a large swath of transactional advisors.

Related:Cambridge Launches Agentic AI Account Opening Tool

Context and Reason. It’s inherently human to simplify life into a repeatable mental map, which is evident in financial advice. Advisors often view clients through a framework that predefines meaning and speeds up analysis and recommendations. Yet life is inherently complex, highly personal, in constant flux and resistant to generalization. And this requires continuous attention to context and the ability to think (reason) through the ramifications of different actions in an inherently ever-shifting set of circumstances. This is particularly relevant in financial advice.

Yet, as recent Apple research, “The Illusion of Thinking,” found, AI is woefully inadequate at that task. AI does not “think.” We perceive lightning-fast retrieval and pattern recognition as reasoning, but they’re not. AI excels at connecting the dots, but it doesn’t understand the dots or the context in which they’re connected.

AI is an incredibly powerful tool, yet it does not replicate the contextual awareness or human reasoning that powers modern financial advicethe collaborative, co-creative process that equips clients to make highly informed and contextual decisions about their own financial future today and as they navigate forward.

Related:Microsoft Report Says AI Will Replace Advisors. Advisors Say, Not So Fast

So, in this case, AI will not replace modern financial advice.

A tale of two professions. One is a more transactional experience that retains many of the attributes of our industry’s legacy sales culture, and the other is modern financial advice, a collaborative advisor-client experience that goes beyond addressing what is known to the hidden and the unknown. A profession defined more by the depth of the engagement, not just breadth, that helps clients examine, reshape and expand their perspectives and frameworks in which they make decisions. Ultimately, enabling clients to make good decisions as they navigate through the uncertainty and flux of life.

So, no, it’s not hard to surmise that our legacy transactional profession will be replaced by AI, particularly as AI continues to make rapid leaps. Modern financial advice, while greatly aided by AI, will most likely never be replaced because AI does not replicate human thinking and reasoning.

Last word on AI. A note about the author. My academic and research background includes epistemology (the science of knowledge), amongst other decision sciences. Based on that, I have long believed that AI will never be able to replicate human reasoning. And the main reason is context.

Related:Key Considerations of AI in Asset and Wealth Management

AI agrees. In response to the question, “Will AI ever be able to think like humans?” ChatGPT responded, “Even if AI can mimic the outputs of human reasoning, it doesn’t have the same foundation. It lacks lived experience, embodiment, evolutionary biases, and contextual grounding that shape human thought.”

Even when artificial general intelligence emerges, it will have the same limitations: “AGI may mimic the appearance of contextual reasoning and human-like breadth, but it won’t share the underlying grounding that makes human reasoning what it is.”

AI is a revolutionary tool with immense capabilities that will help our entire industry excel; however, it just won’t replace modern financial advice—ever.





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Pentagon research official wants to have AI on every desktop in 6 to 9 months

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The Pentagon is angling to introduce artificial intelligence across its workforce within nine months following the reorganization of its key AI office.

Emil Michael, under secretary of defense for research and engineering at the Department of Defense, talked about the agency’s plans for introducing AI to its operations as it continues its modernization journey. 

“We want to have an AI capability on every desktop — 3 million desktops — in six or nine months,” Michael said during a Politico event on Tuesday. “We want to have it focus on applications for corporate use cases like efficiency, like you would use in your own company … for intelligence and for warfighting.”

This announcement follows the recent shakeups and restructuring of the Pentagon’s main artificial intelligence office. A senior defense official said the Chief Digital and Artificial Intelligence Office will serve as a new addition to the department’s research portfolio.

Michael also said he is “excited” about the restructured CDAO, adding that its new role will pivot to a focus on research that is similar to the Defense Advanced Research Projects Agency and Missile Defense Agency. This change is intended to enhance research and engineering priorities that will help advance AI for use by the armed forces and not take agency focus away from AI deployment and innovation.

“To add AI to that portfolio means it gets a lot of muscle to it,” he said. “So I’m spending at least a third of my time –– maybe half –– rethinking how the AI deployment strategy is going to be at DOD.”

Applications coming out of the CDAO and related agencies will then be tailored to corporate workloads, such as efficiency-related work, according to Michael, along with intelligence and warfighting needs.

The Pentagon first stood up the CDAO and brought on its first chief digital and artificial intelligence officer in 2022 to advance the agency’s AI efforts.

The restructuring of the CDAO this year garnered attention due to its pivotal role in investigating the defense applications of emerging technologies and defense acquisition activities. Job cuts within the office added another layer of concern, with reports estimating a 60% reduction in the CDAO workforce.





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Pentagon CTO wants AI on every desktop in 6 to 9 months

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The Pentagon aims to get AI tools to its entire workforce next year, the department’s chief technical officer said one month after being given control of its main AI office.

“We want to have an AI capability on every desktop — 3 million desktops — in six or nine months,” Emil Michael, defense undersecretary for research and engineering, said at a Politico event on Tuesday. “We want to have it focus on applications for corporate use cases like efficiency, like you would use in your own company…for intelligence and for warfighting.”

Four weeks ago, the Chief Digital and Artificial Intelligence Office was demoted from reporting to Deputy Defense Secretary Stephen Feinberg to Michael, a subordinate.

Michael said CDAO will become a research body like the Defense Advanced Research Projects Agency and Missile Defense Agency. He said the change is meant to boost research and engineering into AI for the military, but not reduce its efforts to deploy AI and make innovations.

“To add AI to that portfolio means it gets a lot of muscle to it,” he said. “So I’m spending at least a third of my time—maybe half—rethinking how the AI-deployment strategy is going to be at DOD.”

He said applications would emerge from the CDAO and related agencies that will be tailored to corporate workloads.

The Pentagon created the CDAO in 2022 to advance the agency’s AI efforts and look into defense applications for emerging technologies. The office’s restructuring earlier this year garnered attention. Job cuts within the office added another layer of concern, with reports estimating a 60% reduction in the CDAO workforce.





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Panelists Will Question Who Controls AI | ACS CC News

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Artificial intelligence (AI) has become one of the fastest-growing technologies in the world today. In many industries, individuals and organizations are racing to better understand AI and incorporate it into their work. Surgery is no exception, and that is why Clinical Congress 2025 has made AI one of the six themes of its Opening Day Thematic Sessions.

The first full day of the conference, Sunday, October 5, will include two back-to-back Panel Sessions on AI. The first session, “Using ChatGPT and AI for Beginners” (PS104), offers a foundation for surgeons not yet well versed in AI. The second, “AI: Who Is In Control?” (PS 110), will offer insights into the potential upsides and drawbacks of AI use, as well as its limitations and possible future applications, so that surgeons can involve this technology in their clinical care safely and effectively.

“AI: Who Is In Control?” will be moderated by Anna N. Miller, MD, FACS, an orthopaedic surgeon at Dartmouth Hitchcock Medical Center in Lebanon, New Hampshire, and Gabriel Brat, MD, MPH, MSc, FACS, a trauma and acute care surgeon at Beth Israel Deaconess Medical Center and an assistant professor at Harvard Medical School, both in Boston, Massachusetts.

In an interview, Dr. Brat shared his view that the use of AI is not likely to replace surgeons or decrease the need for surgical skills or decision-making. “It’s not an algorithm that’s going to be throwing the stitch. It’s still the surgeon.”

Nonetheless, he said that the starting presumption of the session is that AI is likely to be highly transformative to the profession over time.  

“Once it has significant uptake, it’ll really change elements of how we think about surgery,” he said, including creating meaningful opportunities for improvements.

The key question of the session, therefore, is not whether to engage with AI, but to do so in ways that ensure the best outcomes: “We as surgeons need to have a role in defining how to do so safely and effectively. Otherwise, people will start to use these tools, and we will be swept along with a movement as opposed to controlling it.”

To that end, Dr. Brat explained that the session will offer “a really strong translational focus by people who have been in the trenches working with these technologies.” He and Dr. Miller have specifically chosen an “all-star panel” designed to represent academia, healthcare associations, and industry. 

The panelists include Rachael A. Callcut, MD, MSPH, FACS, who is the division chief of trauma, acute care surgery and surgical critical care as well as associate dean of data science and innovation at the University of California-Davis Health in Sacramento, California. She will share the perspective on AI from academic surgery.

Genevieve Melton-Meaux, MD, PhD, FACS, FACMI, the inaugural ACS Chief Health Informatics Officer, will present on AI usage in healthcare associations. She also is a colorectal surgeon and the senior associate dean for health informatics and data science at the University of Minnesota and chief health informatics and AI officer for Fairview Health Services, both in Minneapolis.

Finally, Khan Siddiqui, MD, a radiologist and serial entrepreneur who is the cofounder, chairman, and CEO of a company called HOPPR AI, will present the view from industry. HOPPR AI is a for-profit company focused on building AI apps for medical imaging. As a radiologist, Dr. Siddiqui represents a medical specialty that is thought to likely undergo sweeping change as AI is incorporated into image-reading and diagnosis. His comments will focus on professional insights relevant to surgeons.

Their presentations will provide insights on general usage of AI at present, as well as predictions on what the landscape for AI in healthcare will look like in approximately 5 years. The session will include advice on what approaches to AI may be most effective for surgeons interested in ensuring positive outcomes and avoiding negative ones.

Additional information on AI usage pervades Clinical Congress 2025. In addition to various sessions that will comment on AI throughout the 4 days of the conference, various researchers will present studies that involve AI in their methods, starting presumptions, and/or potential applications to practice.

Access the Interactive Program Planner for more details about Clinical Congress 2025 sessions.



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