ISSN : 2583-2646

Real-Time Decision Making in Wealth Management: The Role of AI and Predictive Analytics

ESP Journal of Engineering & Technology Advancements
© 2023 by ESP JETA
Volume 3  Issue 2
Year of Publication : 2023
Authors : Hitesh P. Rai, Uday Padyana, Gireesh Patil
:10.56472/25832646/JETA-V3I6P106

Citation:

Hitesh P. Rai, Uday Padyana, Gireesh Patil, 2023. Real-Time Decision Making in Wealth Management: The Role of AI and Predictive Analytics ESP Journal of Engineering & Technology Advancements  3(2): 110-119.

Abstract:

In the dynamic landscape of wealth management, real-time decision-making is paramount for maximizing investment returns and minimizing risks. This paper explores the transformative role of artificial intelligence (AI) and predictive analytics in enhancing real-time decision- making processes within the financial sector. By leveraging vast datasets and advanced algorithms, AI-driven systems provide unprecedented insights and forecasts, enabling wealth managers to make informed decisions with greater speed and accuracy. The integration of predictive analytics allows for the continuous assessment of market conditions, identification of emerging trends, and proactive risk management. This paper examines the current state of AI and predictive analytics in wealth management, their impact on investment strategies, and the challenges and opportunities associated with their implementation. Through case studies and empirical data, we demonstrate how AI technologies are reshaping the future of financial planning, offering a competitive edge to both traditional and robo-advisors in delivering personalized, efficient, and effective wealth management services.

References:

[1] Demirer, R., Li, Y., & Sufi, J. (2022). Robo-advisors and financial inclusion. The Journal of Financial Economics, 146(1), 22-51. https://www.cairn.info/revue-bankers-markets-et-investors-2022-1-page-35.html
[2] Esa, E., & Soydemir, S. (2020). Robo-advisors and investor sentiment: An empirical analysis. Research in International Business Finance, 55, 101335. https://www.sciencedirect.com/science/article/abs/pii/S0264999319319091
[3] Foerster, S., Klein, T., & Walther, B. (2021). Robo-advisors: A systematic review of the literature. Journal of Business Economics, 92(4), 1255-1287. https://www.sciencedirect.com/science/article/abs/pii/S1544612324001491
[4] Gerard, B., & Nanda, V. (2020). The future of wealth management: How artificial intelligence is transforming the industry. Business Horizons, 63(3), 351-360. https://www.additiv.com/insights/the-future-of-wealth-management/
[5] Huang, W., & Li, Y. (2021). Robo-advisors and investment decisions: Evidence from a large- scale internet experiment. Management Science, 67(11), 7421-7442. https://www.sciencedirect.com/science/article/abs/pii/S0378720623000800
[6] Ikni, I., & Ziadi, D. (2022). Robo-advisors and investor heterogeneity. The Financial Review, 1-32. https://aisel.aisnet.org/wi2022/finance_and_blockchain/finance_and_blockchain/2/
[7] Kim, J., & Yao, V. (2020). Robo-advisors versus human advisors: A comparison of client risk tolerance assessments. The Journal of Wealth Management, 23(4), 29-41. https://www.researchgate.net/publication/348631425_Who_Do_You_Choose_Comparing_Perceptions_of_Human_vs_Robo-advisor_in_the_Context_of_Financial_Services
[8] Li, Y., & Yao, V. (2022). Robo-advisors and household investment behavior. Financial Management, 51(1), 1-37. https://www.emerald.com/insight/content/doi/10.1108/ITP-04-2021-0375/full/html
[9] Liu, J., Yao, R., & Ye, Q. (2020). Robo-advisors and investor overconfidence. The Review of Financial Studies, 33(12), 5722-5760. https://www.sciencedirect.com/science/article/pii/S001671852030230X
[10] Lucht, J., Mussche, M., & Van den Bergh, B. (2021). Robo-advisors versus human advisors: A threat or an opportunity for traditional wealth managers? International Journal of Managerial Finance, 17
[11] Abendroth, O., Gellert, K., Haller, S., Jacobi, C., & Menkhoff, L. (2021). Robo-advisors and human advisors: A threat or a complementary approach? Journal of Asset Management, 22(8), 652-672. https://www.tandfonline.com/doi/full/10.1080/02642069.2021.2176485
[12] Aksu, N., & Gunter, B. (2022). Robo-advisors and human advisors: A comparative analysis on investor trust and advice quality. Journal of Economic Psychology, 129, 102334. https://www.sciencedirect.com/science/article/abs/pii/S0040162522003481
[13] Barber, B., Huang, X., & Liu, J. (2021). Robo-advisors vs. human advisors: A comparison of investment performance. Financial Management, 50(4), 1127-1162.
[14] Brunnermeier, M. K., & Oehmke, M. (2019). The digitalization of wealth management. Swiss Journal of Economics and Statistics, 155(2), 1-33.
[15] Cao, M., Huang, D., & Wang, Y. (2022). Robo-advisors and household financial well-being. The Review of Financial Studies, 35(2), 873-920.
[16] Cartwright, A., & Kugler, M. (2020). Robo-advisors and human financial advisors: A threat or an opportunity? The Journal of Wealth Management, 23(2), 119-134.
[17] Choi, J. H., Kim, J. H., & Lennon, S. J. (2021). Robo-advisors and household financial planning: Evidence from a large-scale field experiment. The Journal of Finance, 76(6), 3283- 3332.
[18] Claessens, S., Frost, J., & Xu, Y. (2020). Robo-advisors. Annual Review of Financial Economics, 12(1), 721-748.
[19] Creutzberg, J., Desai, H., & Mullen, M. N. (2022). Robo-advisors and household saving. The Review of Asset Pricing, 10(2), 349-389.
[20] Daniel, K., Desai, H., & Michaely, R. (2020). Financial advisors and household financial planning: Evidence from the Health and Retirement Study. The Journal of Finance, 75(4), 2049-2092.
[21] Mateos-Planas, J., & Moreno-Munoz, S. (2020). Robo-advisors and their impact on investor behavior. Journal of Economic Behavior & Organization, 183, 110622.
[22] Nanda, V., & Yeh, C. H. (2021). Robo-advisors and the future of wealth management: A critical review. The Journal of Wealth Management, 24(1), 71-87.
[23] Nguyen, H., Tran, V. H., & Wermers, R. (2022). Robo-advisors versus human advisors: A comparison of risk-adjusted performance. The Financial Review, 1-30.
[24] Parameshwar, S., & Rai, A. (2021). Robo-advisors: Disruption or delegation in wealth management? Financial Management, 50(2), 383-418.
[25] Peiris, S., & Vijayakumar, V. (2020). Robo-advisors and investment behavior: An experimental analysis. Journal of Behavioral and Experimental Finance, 27, 101435.
[26] Pfau, B., & Kitsios, M. J. (2020). Robo-advisors and retirement planning: A framework for analysis. Financial Services Review, 25(1), 1-22.
[27] Rashkova, T. (2022). Robo-advisors and client trust: A theoretical framework and empirical evidence. Journal of Business Ethics, 180(3), 633-653.
[28] Shufrin, L., & Statman, M. (2020). The future of investment advice: Robo-advisors versus human advisors. Financial Analysts Journal, 76(3), 38-51.
[29] Predictive Maintenance and Resource Optimization in Inventory Identification Tool Using ML. (2020). International Journal of Open Publication and Exploration, ISSN: 3006- 2853, 8(2), 43-50. https://ijope.com/index.php/home/article/view/127
[30] Case Studies on Improving User Interaction and Satisfaction using AI-Enabled Chatbots for Customer Service . (2019). International Journal of Transcontinental Discoveries, ISSN: 3006-628X, 6(1), 29-34. https://internationaljournals.org/index.php/ijtd/article/view/98
[31] Kanungo, Satyanarayan. "Cross-Border Data Governance and Privacy Laws." International Journal of Open Publication and Exploration (IJOPE), vol. 11, no. 1, January-June 2023, pp. 44-46. Available online at: https://ijope.com
[32] Kanungo, Satyanarayan. "Edge Computing: Enhancing Performance and Efficiency in IoT Applications." International Journal on Recent and Innovation Trends in Computing and Communication 10, no. 12 (December 2022): 242. Available at: http://www.ijritcc.org
[33] Kanungo, Satyanarayan. "Hybrid Cloud Integration: Best Practices and Use Cases." International Journal on Recent and Innovation Trends in Computing and Communication (IJRITCC), vol. 9, no. 5, May 2021, pp. 62-70. Available at: http://www.ijritcc.org
[34] Kanungo, Satyanarayan. "Decoding AI: Transparent Models for Understandable Decision- Making. "Tuijin Jishu/Journal of Propulsion Technology 41, no. 4 (2020): 54-61.
[35] Kanungo, Satyanarayan, and Pradeep Kumar. "Machine Learning Fraud Detection System in the Financial Section." Webology, vol. 16, no. 2, 2019, p. 490-497. Available at: http://www.webology.org
[36] Kaur, Jagbir. "Streaming Data Analytics: Challenges and Opportunities." International Journal of Applied Engineering & Technology, vol. 5, no. S4, July-August 2023, pp. 10- 16. https://romanpub.com/resources/ijaetv5-s4-july-aug-2023-2.pdf
[37] Kaur, Jagbir, et al. "AI Applications in Smart Cities: Experiences from Deploying ML Algorithms for Urban Planning and Resource Optimization." Tuijin Jishu/Journal of Propulsion Technology 40, no. 4 (2019): 50.
[38] Case Studies on Improving User Interaction and Satisfaction using AI-Enabled Chatbots for Customer Service . (2019). International Journal of Transcontinental Discoveries, ISSN: 3006-628X, 6(1), 29-34. https://internationaljournals.org/index.php/ijtd/article/view/98
[39] Ashok Choppadandi, Jagbir Kaur, Pradeep Kumar Chenchala, Akshay Agarwal, Varun Nakra, Pandi Kirupa Gopalakrishna Pandian, 2021. "Anomaly Detection in Cybersecurity: Leveraging Machine Learning Algorithms" ESP Journal of Engineering & Technology Advancements 1(2): 34-41.
[40] Ashok Choppadandi et al, International Journal of Computer Science and Mobile Computing, Vol.9 Issue.12, December- 2020, pg. 103-112.
[41] AI-Driven Customer Relationship Management in PK Salon Management System. (2019). International Journal of Open Publication and Exploration, ISSN: 3006-2853, 7(2), 28-35. https://ijope.com/index.php/home/article/view/128
[42] Predictive Maintenance and Resource Optimization in Inventory Identification Tool Using ML. (2020). International Journal of Open Publication and Exploration, ISSN: 3006-2853, 8(2), 43-50. https://ijope.com/index.php/home/article/view/127
[43] Chintala, S. (2022). Data Privacy and Security Challenges in AI-Driven Healthcare Systems in India. Journal of Data Acquisition and Processing, 37(5), 2769-2778. https://sjcjycl.cn/18.DOI:10.5281/zenodo.7766
[44] Chintala, S. K., et al. (2022). AI in public health: Modeling disease spread and management strategies. NeuroQuantology, 20(8), 10830-10838. doi:10.48047/nq.2022.20.8.nq221111
[45] Chintala, S. (2022). Data Privacy and Security Challenges in AI-Driven Healthcare Systems in India. Journal of Data Acquisition and Processing, 37(5), 2769-2778. https://sjcjycl.cn/DOI:10.5281/zenodo.7766
[46] Chintala, S. K., et al. (2021). Explore the impact of emerging technologies such as AI, machine learning, and blockchain on transforming retail marketing strategies. Webology, 18(1), 2361-2375. http://www.webology.org
[47] Chintala, S. K., et al. (2022). AI in public health: Modeling disease spread and management strategies. NeuroQuantology, 20(8), 10830-10838. doi:10.48047/nq.2022.20.8.nq221111
[48] Sathish Kumar Chintala. (2023). Evaluating the Impact of AI on Mental Health Assessments and Therapies. Eduzone: International Peer Reviewed/Refereed Multidisciplinary Journal, 7(2), 120–128. Retrieved from https://eduzonejournal.com/index.php/eiprmj/article/view/488
[49] Chintala, S. (2022). AI in Personalized Medicine: Tailoring Treatment Based on Genetic Information. Community Practitioner, 21(1), 141-149. ISSN 1462- 2815. www.commprac.com
[50] Machine Learning Algorithms and Predictive Task Allocation in Software Project Management". (2023). International Journal of Open Publication and Exploration, ISSN: 3006-2853, 11(1), 34-43. https://ijope.com/index.php/home/article/view/107
[51] Chintala, S. (2023). AI-Driven Personalised Treatment Plans: The Future of Precision Medicine. Machine Intelligence Research, 17(02), 9718-9728. ISSN: 2153-182X, E-ISSN: 2153-1838.
[52] Chintala, S. (2019). IoT and Cloud Computing: Enhancing Connectivity. International Journal of New Media Studies (IJNMS), 6(1), 18-25. ISSN: 2394-4331. https://ijnms.com/index.php/ijnms/article/view/208/172
[53] Chintala, S. (2018). Evaluating the Impact of AI on Mental Health Assessments and Therapies. EDUZONE: International Peer Reviewed/Refereed Multidisciplinary Journal (EIPRMJ), 7(2), 120-128. ISSN: 2319-5045. Available online at: www.eduzonejournal.com
[54] Sathishkumar Chintala. (2021). Evaluating the Impact of AI and ML on Diagnostic Accuracy in Radiology. Eduzone: International Peer Reviewed/Refereed Multidisciplinary Journal, 10(1), 68–75. Retrieved from https://eduzonejournal.com/index.php/eiprmj/article/view/502
[55] Chintala, S. (2023). Artificial Intelligence-Based Device for Managing Patient Privacy and Data Security. Patent No. 6335758. Retrieved from https://www.registered-design.service.gov.uk/find/6335758/
[56] Tilala, Mitul, Saigurudatta Pamulaparthyvenkata, Abhip Dilip Chawda, and Abhishek Pandurang Benke. "Explore the Technologies and Architectures Enabling Real-Time Data Processing within Healthcare Data Lakes, and How They Facilitate Immediate Clinical Decision-Making and Patient Care Interventions." European Chemical Bulletin 11, no. 12 (2022): 4537-4542. https://doi.org/10.53555/ecb/2022.11.12.425.
[57] Tilala, Mitul, and Abhip Dilip Chawda. "Evaluation of Compliance Requirements for Annual Reports in Pharmaceutical Industries." NeuroQuantology 18, no. 11 (November 2020): 138-145. https://doi.org/10.48047/nq.2020.18.11.NQ20244.
[58] Mitul Tilala. (2023). Real-Time Data Processing in Healthcare: Architectures and Applications for Immediate Clinical Insights. International Journal on Recent and Innovation Trends in Computing and Communication, 11(11), 1119–1125. Retrieved from https://www.ijritcc.org/index.php/ijritcc/article/view/10629

Keywords:

Robo-Advisors, Wealth Management, Artificial Intelligence (AI), Machine Learning (ML), Financial Planning, Hybrid Model, Regulatory Compliance, Client Experience, Cost-Effectiveness, Accessibility, Personalized Advice, Data-Driven Analysis, Emotional Intelligence.