Florida Banking April/May 2025

TRUST & WEALTH MANAGEMENT

PROCEED, BUT PROCEED WITH CAUTION! NAVIGATING THE RISKS AND REWARDS OF GENERATIVE AI

BY ALEXANDER KLEIN, FOUNDER & PRESIDENT, THE BENJAMIN SCHOOL, AI CLUB, AND MARK PARTHEMER, AEP, ACTEC FELLOW, GLENMEDE TRUST COMPANY

I n the long-running TV show, “Hill Street Blues,” Sergeant Phil Esterhaus’s daily warning – "Let’s be careful out there" – applies well to the rise of generative artificial intelligence (AI). As AI becomes increasingly integrated into professional settings, advisors must learn how to approach it wisely. Let’s take a step back in time. When handheld calculators first hit the market in 1971, schools struggled to determine their role – some banned them, others embraced them and some limited their use. Over time, calculators became recognized as tools to master, not fear. AI is following a similar path. To understand its implications, it’s helpful to break AI into five categories: 1. Reactive AI: Operates on fixed rules and pattern recognition. Examples: Autofill for forms, spam filters in email, credit card fraud detection systems 2. Artificial Narrow Intelligence: Specializes in one task, but lacks broader intelligence. Examples: Google translate, Alexa, Siri 3. Limited Memory AI: Learns from past data to improve decisions. Examples: Recommendations for online shopping, self driving cars 4. Predictive AI: Uses machine learning to anticipate outcomes. Examples: Predictive text suggestions, weather forecasting models, Netflix recommendations

“WHEN HANDHELD CALCULATORS FIRST HIT THE MARKET... SCHOOLS STRUGGLED TO DETERMINE THEIR ROLE – SOME BANNED THEM, OTHERS EMBRACED THEM AND SOME LIMITED THEIR USE. OVER TIME, CALCULATORS BECAME RECOGNIZED AS TOOLS TO MASTER, NOT FEAR.”

5. Generative AI: Creates new content using vast data models. Examples: Virtual assistants that draft email; Microsoft co-pilot; ChatGPT, which drafts articles, summarizes information and compares concepts

For instance, you can use AI to bridge the gap between wealth management (a sponsor’s focus) and nutrition’s role in cognitive health (a speaker’s topic).

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