Maintaining Humanity in an Increasingly Robotic, Automated A.I. World
I have been slow to accept that, from a service perspective, humans will ever be replaced by computers.
I’ve suggested that customers will resist “robots” and I’ve based my thinking in part on the “uncanny valley” hypothesis which postulates that the more robots look like humans the less humans will feel comfortable with them.
I am starting to rethink my assumptions and my conclusion. While humans may not be fully replaceable, I do believe artificial intelligence and robots will displace a lot of service providers. Here are a couple harbingers of the future…
Café X is now open in Hong Kong and San Francisco. It’s a robotic coffee shop where you can place your order on your phone or on an in-store tablet. You can select your drink of choice and even your desired locally roasted coffee beans. Twenty-five to 55 seconds later you have your “robot-crafted” beverage in your hand, thanks to a code sent to your phone which allows you to collect your drink. (To see CafeX in action click here)
Staying in the coffee category and bridging between humans and bots, this week Starbucks announced it is launching voice ordering capabilities within the Starbucks mobile iOS app from the Amazon Alexa platform.
According to the press release “Select customers can now order coffee ‘on command’ using My Starbucks® barista as part of an initial feature rollout integrated seamlessly into the Starbucks mobile app for iOS. At the same time, the company is launching a Starbucks Reorder Skill on the popular Amazon Alexa platform. Both features allow customers to order from Starbucks simply by using their voice….Previously announced at Starbucks Investor Day, My Starbucks® barista, is powered by groundbreaking Artificial Intelligence (AI) for the Starbucks® Mobile App. The integration of the feature within the mobile app allows customers to order and pay for their food and beverage items simply by using their voice. The messaging interface allows customers to speak or text just as if they were talking to a barista in-store, including modifying their beverage to meet their personal preference.” To see the “My Starbucks®” barista in action click here)
Ok, so what can you do to maintain humanity in an increasingly robotic, automated, and artificially intelligent world?
In a word – CARE!
While many service functions can be automated to increase speed, efficiency, and consistency – I will stand firm that there will always be a need for people who add uniquely human value through compassionate listening and authentic caring.
I will use one last example from the world of coffee to demonstrate my point. It involved a drive-thru interaction between a team of Dutch Bros baristas and a customer who was having a difficult day shortly after the loss of her husband. That Vancouver-based team listened, focused their attention on the woman, and comforted her in ways I doubt robots will ever be able to fully emulate. One moment from that interaction was captured on a mobile phone by another customer and the picture went viral. News stories about the compassionate service followed. (To see more on human service intelligence in action click here).
How are you maintaining the relevance of your human service? Will Artificial Intelligence prevail over Human (emotional) intelligence?
I may have to yield ground to robots but I won’t concede that which is uniquely human!
An Advisor's Guide to Helping Women Become Savvy Investors
Today, more women than ever are involved in managing their personal and household finances. In a recent study, nearly half of the women surveyed (44%) stated that they are solely responsible for their household financial decisions, compared to 35% of men1. But the study wasn’t all good news. While women may be taking the lead when it comes to their finances, they also reported that they are not confident in doing so. In fact, in every financial category included in the survey, men reported much greater confidence than women. Where was the biggest gap? You guessed it: investing.
For advisors, this presents a challenge and an opportunity. There is a 90% likelihood that a woman will be financially self-reliant at some point in her life due to divorce, becoming a widow, or choosing to marry later in life or not at all2. By taking steps to help your female clients become confident, savvy investors, you’ll not only be more effective at serving in the best interests of these women and their families, but you’ll also be able to build much stronger, more trusted relationships to help ensure each family’s assets remain in your care for decades to come.
Follow these five steps to help your female clients invest with greater confidence:
1. Urge every woman to put her financial needs first.
Women do have a weakness when it comes to planning for the future, but it has nothing to do with a lack of knowledge, skill, or smarts. Their primary weakness is a willingness to put others’ needs first. This is a huge mistake when it comes to planning for the future. Investing for retirement simply can’t wait until the kids are grown or aging parents no longer need care. In fact, based on average life expectancies, women should plan to accumulate enough funds to last at least 20 years after retirement. The following chart illustrates the power of compounding based on an 8% rate of return to help bring that point home:
This hypothetical example assumes an annual 8% rate of return and does not take into account income taxes or investment fees and expenses. This example is for illustrative purposes only and does not represent the performance of any specific investment. An investor’s actual return is not likely to be consistent from year to year, and there is no guarantee that a specific rate of return will be achieved.
2. Educate women about the power of investing.
Security about any topic is rooted in confidence and knowledge. Educating your female clients about investment basics can help drive more confident decisions and more positive long-term outcomes. From the basics of compounding to the nuts and bolts of researching options and understanding the pros and cons of different asset classes, make it your job to help every client understand what she is buying—and why.
3. Dive into the details of asset allocation.
Asset allocation is by far the largest determinant of a portfolio’s success—even more important than the individual securities selected and timing of an investment. This is critical information for your client to understand as she pursues her financial goals.
4. Discuss how her investment strategy needs to evolve over time.
Part of every client’s financial education should be to understand how financial needs and goals change with each stage of life stage. Because a shorter investment time horizon creates greater vulnerability to market volatility, she needs to understand the impact of shifting a portion of her investment portfolio to more income-oriented investments as she moves closer to retirement. This Life Stages Guide can help you paint a clear picture of how allocation strategies need to evolve to fit her changing needs.
5. Be sure she’s covering all the financial bases.
Smart investing is vital, but missteps in other areas of financial planning can thwart even the best investment plan. Offer every client a basic planning checklist that includes these three important steps:
- Focus on the big picture. Organize your important financial papers and schedule an annual review of your investment strategy with your advisor. Regularly monitor your net worth—including your assets (all investments and savings) and liabilities (mortgage, credit cards, and other debts) to be sure you’re always moving toward your end goal of a secure retirement.
- Pay down any outstanding debt. Debt reduces your net worth, threatens your financial security today, and reduces your ability to invest for the future. Do whatever you can to minimize debt, and build an emergency fund to help pay for any unexpected expenses.
- Make estate planning a priority. Once a year, review your will and your beneficiary designations for every account to be sure they continue to reflect your wishes. If you have children under 18, work with your advisor or estate planner to establish a trust and select a trustee to ensure your assets are managed for the benefit of your children.
As a trusted advisor, make it your mission to provide your female clients with the education and guidance they need to become savvy investors and make the smart, educated financial decisions. By doing so, you can help every woman you work with not only enhance her financial security, but also gain the confidence to take greater control of every aspect of her financial life.
Click here to learn more about IndexIQ.
 Survey conducted by Regions Financial Corp. in partnership with Vanderbilt University, 2015.
 The Simple Dollar, “Guide to Financial Independence for Women,” 2014.
Disclosure: The information and opinions herein are for general information use only. The opinions reflect those of the writers but not necessarily those of New York Life Investment Management LLC (NYLIM). NYLIM does not guarantee their accuracy or completeness, nor does New York Life Investment Management LLC assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice and are not intended as an offer or solicitation with respect to the purchase or sale of any security or as personalized investment advice.
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