If we look closely, a lot of credit for this
goes to the poor quality of advice provided by most professionals currently involved in the business of providing retail individual investor financial advice.
Simply regurgitating the popular fads seen in the “News” and social media,
is a task easily accomplished by LLMs trained on the same public sources.
LLMs can already do that. Here’s a recent ongoing topic-thread How to invest 40 lakhs for retirement corpus in 20 years. For now, the challenge continues to be the individual though. This is similar to the consultation services offered by numerous institutions for ITR filing. The individual continues to be responsible for any errors/omissions.
LLMs customized for the purpose (training, fine-tuning, custom system-prompt) to make them less sycophantic and more likely to provide comprehensive financial advice, can definitely replace the human in the loop. However, human financial advisors continue to be cheaper (for now), unless one has a huge user-base (like Zerodha does) to amortize the cost of training/running LLMs over lacs of users. Also, humans are required in the loop legally (eg. for representative tax filing).
Couple of ways this is possible already even with current-gen LLMs -
- Train / Fine-tune an LLM on stuff like Innerworth - Mind over markets – Varsity by Zerodha
- Add guardrails (static checks on user-input or LLM-output) around user-LLM interactions to avoid potential red-flags.