What is the Essential First Step to Implementing AI?

Elevation Point CEO Jim Dickson emphasizes that financial advisors must prioritize data organization and centralization before attempting to implement artificial intelligence. Speaking at the Wealth Management Edge conference, Dickson highlights how agentic workflows and flexible integration layers can enhance client experiences and firm profitability. This strategic approach is critical for wealth management firms looking to leverage AI effectively while maintaining the essential human element in client relationships.

Jim Dickson, CEO and founder of Elevation Point, argues that many financial advisory firms are skipping the unglamorous but vital groundwork required for successful AI adoption. He asserts that firms must first focus on organizing, codifying, and centralizing their data into a dedicated warehouse or data lake before expecting meaningful results. Dickson suggests that by moving workflows directly to the data layer, firms can create agentic systems that automate complex tasks and streamline internal processes.

The implementation of AI in wealth management is increasingly reliant on flexible integration through Model Context Protocol (MCP) plugin layers. Dickson identifies specific high-value use cases for advisors, including automated client review preparation, service customization, and proactive follow-up communications. These tools are designed to improve the overall client experience and firm profitability by reducing administrative burdens. However, the transition requires navigating significant challenges, such as the high costs of tokens and compute power, as well as the necessity of establishing robust regulatory and operational guardrails.

Despite the rise of automation, Dickson maintains that financial advisors remain indispensable for the last mile of service and for providing empathy during significant life events. He advocates for a gradual training approach that goes beyond simple chatbots, encouraging professionals to spend at least one hour a day working with AI tools to build proficiency. Furthermore, Dickson views the current technological shift as an opportunity for the wealth management sector to attract top young talent who may be displaced from other industries. By utilizing mentorship and apprenticeship models, firms can integrate next-generation professionals who are comfortable with AI-driven environments.