We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,468)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (438)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (810)
  • Wink's Articles (359)
  • Wink's Inside Story (276)
  • Wink's Press Releases (125)
  • Blog Archives

  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • Younger Americans are More Optimistic than Older Americans About the Potential of AI to Help Manage Money, According to Northwestern Mutual’s 2024 Planning & Progress Study

    June 6, 2024 by Northwestern Mutual

    Meanwhile, Gen X and Boomers+ are skeptical about “DIY GenAI” for financial planning

    Americans are most excited about AI’s advanced data analysis to potentially help financial advisors improve planning recommendations

    MILWAUKEEJune 4, 2024 /PRNewswire/ — As artificial intelligence (AI) continues to evolve and fuel debate about its transformative power on business and society, younger Americans are far more optimistic about the technology’s potential to help them reach their financial goals. More than half of Gen Z’ers (57%) and Millennials (55%) say they are excited about the impact AI and generative AI (GenAI) tools could have on their financial lives. Meanwhile, older Americans are more skeptical – only 38% of Gen X’ers and 23% of Boomers+ say they are excited. These are the latest findings from Northwestern Mutual’s 2024 Planning & Progress Study and the first-ever research findings on AI in the study’s history.

    According to the survey results, 63% of Gen Z and 57% of Millennials say AI will “improve the customer experience in the financial sector, including with financial planning.” Conversely, less than half of Gen X (44%) and Boomers+ (32%) share this sentiment. 

    AI will improve the customer experience in the financial services sector, including with financial planning.

    All

    Gen Z

    Millennials

    Gen X

    Boomers+

    Yes

    47 %

    63 %

    57 %

    44 %

    32 %

    No

    53 %

    37 %

    43 %

    56 %

    68 %

     

    I’m excited about the potential of AI/GenAI in the financial services industry.

    All

    Gen Z

    Millennials

    Gen X

    Boomers+

    Yes

    41 %

    57 %

    55 %

    38 %

    23 %

    No

    59 %

    43 %

    45 %

    62 %

    77 %

    When asked to identify the potential benefit of AI Americans’ are most excited about when it comes to managing their money, “advanced data analysis” emerged as the top choice. Faster response times, increased efficiencies, improved customer service and greater opportunities for customization rounded out the remainder of the top five benefits.

    “Younger generations are more willing to accept having their financial services partners leverage GenAI to manage their money,” said Christian Mitchell, executive vice president and chief customer officer at Northwestern Mutual. “However, even older generations say they are comfortable with their financial advisor leveraging the technology to ask even better questions and help them build wealth and financial security. The majority believe AI and GenAI can be a fantastic addition for a trusted advisor, helping financial professionals deliver even better results and experiences for their clients. The bottom line is this: artificial intelligence can help organizations find human capacity, not replace it.”

    The future is human + digital

    In a pure side-by-side comparison, the research shows that people trust humans (54%) far more than AI alone (15%) across most core elements of financial planning, from creating a retirement plan to asking a financial question to managing budgets. 

    Who do you trust more in the following scenarios?

    Not sure

    Both the same

    Artificial

    Intelligence (AI)

    more

    Humans more

    Creating a retirement plan

    10 %

    19 %

    12 %

    59 %

    Asking a financial question

    8 %

    20 %

    13 %

    59 %

    Developing a tailored, robust financial plan

    11 %

    18 %

    15 %

    56 %

    Creating a savings plan

    9 %

    21 %

    14 %

    55 %

    Making asset allocation decisions, building and managing investment portfolios

    13 %

    20 %

    14 %

    53 %

    Recommending financial products

    11 %

    21 %

    15 %

    53 %

    Providing financial savings tips

    10 %

    23 %

    15 %

    52 %

    Making updates to your personal customer information

    10 %

    21 %

    16 %

    52 %

    Managing a budget and keeping me on track

    10 %

    23 %

    18 %

    49 %

    AVERAGE:

    10 %

    21 %

    15 %

    54 %

    At the same time, the survey shows that people are largely comfortable with financial advisors and providers using AI tools for common tasks like fraud detection, answering service calls and joining meetings, and capturing notes, to more sophisticated tasks like predicting financial trends and modeling financial planning scenarios. 

    What is your comfort level with financial advisors using AI to…

    Very

    uncomfortable

    Somewhat

    uncomfortable

    Somewhat

    comfortable

    Very

    comfortable

    Total

    Comfortable

    Detect fraud

    15 %

    16 %

    38 %

    31 %

    69 %

    Analyze data to predict future trends that could inform decision-making

    16 %

    20 %

    41 %

    23 %

    64 %

    Model and illustrate multiple financial scenarios to better visualize possible outcomes

    16 %

    20 %

    43 %

    21 %

    64 %

    Analyze data related to your financial habits, preferences, decisions and behaviors to identify areas for adjustments / improvements

    17 %

    22 %

    41 %

    21 %

    62 %

    Provide real-time financial guidance

    18 %

    25 %

    39 %

    18 %

    57 %

    Join meetings with you and be responsible for capturing information and prompting next steps

    20 %

    28 %

    37 %

    16 %

    53 %

     

    What is your comfort level with financial service firms using AI to…

    Very

    uncomfortable

    Somewhat

    uncomfortable

    Somewhat

    comfortable

    Very

    comfortable

    Total

    Comfortable

    Answer a straightforward financial question

    18 %

    20 %

    39 %

    22 %

    61 %

    Make updates to your basic customer data

    19 %

    23 %

    37 %

    21 %

    58 %

    Answer service calls and respond to your questions

    21 %

    26 %

    36 %

    18 %

    54 %

    Make updates to your existing financial plan

    22 %

    28 %

    34 %

    17 %

    51 %

    “It’s still very early in terms of how far the technology will go, but AI tools are going to allow for the mass automation of tasks, significantly reducing manual work and deeply improving efficiencies across not just financial services, but most industries,” said Mitchell. “By alleviating the most tedious and administrative aspects of our work, it will free up precious time to focus on building human connections and deliverables that provide the greatest value. So, it is people who sit at the heart of this digital transformation. The expertise and personalization that financial advisors provide can’t be replicated or replaced by AI, but it can be enhanced. That’s why we believe the future is human + digital.”

    People aren’t ready to replace humans with AI yet… but signs of cautious trust are there.

    The study also explored people’s comfort level with AI in a few areas outside of financial planning. While very few are ready to replace humans with AI right away, trust levels in the emerging technology were higher than one might expect. For example, 40% of Americans are either somewhat or very trusting of AI taking over for human umpires and referees in professional sports; 35% say the same about AI taking over for nurses when collecting information such as medical histories and current symptoms during doctor’s visits; a third (33%) say the same about AI taking over from artists to produce movies, books, music and paintings; and nearly a third (32%) say the same about AI taking over for educators to teach core curriculum classes.

    What is your trust level in leveraging AI / GenAI to take over for…

    Very untrusting

    Somewhat

    untrusting

    Somewhat

    trusting

    Very

    trusting

    Total

    Trusting

    Human umpires and referees in professional sports

    31 %

    28 %

    28 %

    12 %

    40 %

    Nurses when obtaining your medical history / existing symptoms for your doctor visit

    37 %

    29 %

    25 %

    10 %

    35 %

    Artists to produce movies, books, music, paintings, etc.

    39 %

    28 %

    23 %

    10 %

    33 %

    Teachers and professors for core curriculum classes

    40 %

    28 %

    23 %

    9 %

    32 %

    Humans driving cars (i.e., self-driving vehicles)

    42 %

    26 %

    22 %

    10 %

    32 %

    Parents keepings kids accountable and teaching them about responsibility

    45 %

    26 %

    19 %

    9 %

    28 %

    In forthcoming data sets, the 2024 Northwestern Mutual Planning & Progress Study will explore wide-ranging issues facing Americans spanning retirement income, professional help, generational planning and more. 

    About The 2024 Northwestern Mutual Planning & Progress Study

    The 2024 Planning & Progress Study was conducted by The Harris Poll on behalf of Northwestern Mutual among 4,588 U.S. adults aged 18 or older. The survey was conducted online between January 3 and January 17, 2024. Data are weighted where necessary by age, gender, race/ethnicity, region, education, marital status, household size, household income, and propensity to be online to bring them in line with their actual proportions in the population. A complete survey methodology is available. 

    About Northwestern Mutual

    Northwestern Mutual has been helping people and businesses achieve financial security for more than 165 years. Through a comprehensive planning approach, Northwestern Mutual combines the expertise of its financial professionals with a personalized digital experience and industry-leading products to help its clients plan for what’s most important. With over $627 billion of total assetsi being managed across the company’s institutional portfolio as well as retail investment client portfolios, more than $36 billion in revenues, and $2.3 trillion worth of life insurance protection in force, Northwestern Mutual delivers financial security to more than five million people with life, disability income and long-term care insurance, annuities, and brokerage and advisory services. Northwestern Mutual ranked 111 on the 2023 FORTUNE 500 and was recognized by FORTUNE® as one of the “World’s Most Admired” life insurance companies in 2024. 

    Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee, WI (life and disability insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries. Subsidiaries include Northwestern Mutual Investment Services, LLC (NMIS) (investment brokerage services), broker-dealer, registered investment adviser, member FINRA and SIPC; the Northwestern Mutual Wealth Management Company® (NMWMC) (investment advisory and services), federal savings bank; and Northwestern Long Term Care Insurance Company (NLTC) (long-term care insurance). Not all Northwestern Mutual representatives are advisors. Only those representatives with “Advisor” in their title or who otherwise disclose their status as an advisor of NMWMC are credentialed as NMWMC representatives to provide investment advisory services.  

    1 Includes investments and separate account assets of Northwestern Mutual as well as retail investment client assets held or managed by Northwestern Mutual.

    SOURCE Northwestern Mutual

    Originally Posted at PR Newswire on June 4, 2024 by Northwestern Mutual.

    Categories: Industry Articles
    currency