Oasis Group’s John O’Connell explains why wealth management is entering a new phase of AI adoption, moving from experimentation to full-scale implementation.
He explains how companies can assess their position on the AI maturity curve, build governance frameworks and identify use cases that make real business impact. He also explains how AI will reshape the middle and back office, why the advisor-client relationship will remain central, and what companies must do now to remain competitive in a rapidly evolving landscape.
Read the full raw transcript below:
Shannon Rosick: I’m currently joined by one of the leading voices in wealth management, especially AI, John O’Connell, Founder and CEO of Oasis Group. John, thanks so much for joining me.
John O’Connell: Thanks so much for having me, Shannon.
SR: So I always enjoy our conversations because I get a chance to interact with you and talk about deeper things when it comes to our industry. So let’s start with the obvious. AI is obviously making headlines, but what are you seeing in terms of where we are right now and what can we expect in the future?
JC: So I, I spoke at AI University this week, which is really cool. I think what we’re seeing at this point is, this is the biggest transformational movement that we’ll probably see with artificial intelligence in our entire lifetime and into the future. So, you know, I’m a big history buff. I graduated during the first AI winter. I see, you know, we have two AI winners. The big difference now is that we have the computing power, we have the training data that this is going to be transformative. So everything you see from now on from the advisory relationship is really transformational in the wealth management space. I don’t think the advisory relationship is going to change much, but the middle and back office is going to change significantly. In fact, even advisors who focus primarily on investment management are really going to shift away from investment management more toward behavioral finance and relationship management because the computing power is such that a lot of the investing is going to be done on its own, I mean, in many cases, or with a very small support staff that is keeping track of it.
SR: Well, it seems like we have actually moved from AI curiosity to AI implementation in our industry. So talk to me about what you’re seeing there. Are you seeing more acceptance when it comes to this? Are you encouraged that companies are now really saying, hey, we’re moving beyond just cautious optimism and actually implementing this within our firms?
JC: So I think there were about 250 people in my session yesterday. It was standing room only, which was amazing. And when I asked the question how many people were using AI, about 200 hands went up in the air. So it’s not like, are they using AI? Everyone is playing with it. Everyone is starting to do something with it. I think what we find most is that companies are really struggling with, OK, now how do I execute this? How do I institutionalize this going forward? So we recommend first understanding where you are on the AI maturity curve. Second, formulate an AI acceptable use policy. Understand what’s inbounds, what’s out of bounds, and then third, be a little rigorous in figuring out the use cases that will make them move the ball. You have completed the experiment phase. Now is the time to operationalize and institutionalize this in your firm, and you have to take some real proactive steps to do so.
SR:: Of course, you talk about maturity when it comes to AI and you recently dropped the AI maturity index. So talk to me a little bit about that and some of the conclusions that came from it.
JC: Thank you. So the AI Maturity Index is a free tool that anyone can download from our website. Any wealth management firm can conduct this self-assessment. It has 35 questions on the governance side and 35 questions on the technology side and the results are more heavily weighted on the governance side, well, because of our industry we have to make sure that we’re being good stewards of our customers’ information. So what this means is that as you take the test, it dynamically shows you where you are on the maturity curve as you answer each question.
So you have a question, you have 5 levels of adoption, and this shows you where you sit on the curve. Once you give the entire test, you will know whether you are a leader or a laggard? And then not only that, because each question has 5 maturity levels associated with it, you have an initial road map of, okay, where I am in the maturity curve here. How do I move up? Here are the levels I need to progress through to truly achieve a leadership position using AI. So, we’ve designed it specifically around like our research, we’ve designed it specifically around where you are today, but not just that but here’s where you can go tomorrow and whether they work with a firm like ours where we can help them with um AI consulting or they just go on their own journey. I wanted to give them a good roadmap to get started.
SR: And obviously we’re here at the T3 conference in New Orleans. In terms of technology, even beyond AI, you know, what are you excited about this year and maybe there’s still some noise that people might forget and take as crap for this year?
JC: You know, I think we get to see a lot of fun in the industry. So will AI put developers out of business? You know what the future of software is. And I mentioned in my presentation yesterday, this is not going to fundamentally change the software, okay? This will speed up software development, as yesterday on the forum, I literally created an intake form using artificial intelligence that you can deploy on your website to get information for financial planning. This is very good. Can you put it into production? None yet. This, this is a leg up. It’s a great prototype, but you need a developer for a security audit, for example. Can I, can I make an injection attack on him? Is it safe in data transfer? Is it protecting PII? Is the data being encrypted after it is received? These are all what you find in professionally developed software.
So, will we see a lot of software development where you’re, you’re focusing on industrial engineering and user interface design? No, much of it will change significantly. Will the underlying data processing and the security around it change? No, it will actually become more important. And I see the same thing in money management. What relationship, uh, will our advisors go to? Absolutely not, because look, if something bad happens in your life, you need someone to talk to who will give you empathy and understanding and say, you know, this sucks, but I get you. In this way, together we will maintain this harmony, which is not going to end. It’s literally in our DNA, you know, we’re not the lone wolf. We, we hang out in packs and groups, and there’s a reason for that because you have to have that camaraderie, that sense of community. Will the middle and back office change? Yes, they’re going to change significantly. Moving data from one place to another, moving paper, collecting stuff in forms, processing it, it will change significantly. So your middle and back office will need help navigating that change because their jobs will be 100% different in a year.
SR: Oh hell yeah. And how do you think advisors can really show value in the advent of all these changes happening within the industry?
JC: So I think the first thing is not to put your head in the sand like an ostrich and say this isn’t going to change what I’m doing. What you are doing will fundamentally change. So the first thing I would say is that you need to start your AI journey. If you haven’t done this, if you’re experimenting, you need to get to the point where this is a real operational part of your business.
And again, I would say that’s a first step and then moving forward I think consultants need to start asking questions or teaching their teams how to think in AI. In other words, what we do today is our business process today. How can this be changed using artificial intelligence? How can we make it more efficient? I’ll give you a very concrete example. Many people do not have their standard operating procedures documented. Use AI to interview a team member who knows what’s going on in his or her mind to get the SOP down on paper, this is a great way to start. This is not client facing, will not impact any clients. It will de-risk your business because you don’t have to write it down on paper and it’s a great opportunity to really turn the corner on how you use AI in your, your, your practice.
SR: Great advice as always, John, it’s been a pleasure talking to you and hearing your insights.
JC: Thanks so much for having me, Shannon. I know you can talk to a lot of people. I really appreciate the fact that you take the time to talk to me
SR: It always happens because I always learn something from you when we chat. So John, I appreciate it.
JC: thank you so much
SR: For money management, I’m Shannon Rosick.