Weekly Briefing No. 53 Financial Disruptors Have Already Won the Election

In explaining his rationale for deposing CEO Adam Nash and reinserting himself in the top spot, Wealthfront co-founder Andy Rachleff put his faith in artificial intelligence over people: "We understand that many older investors who meet the high minimums of the traditional industry will continue to find more comfort in a personal relationship with a traditional advisor and we respect that." Rachleff went on to explain that his company is building an AI-powered offering for a new generation of investors who supposedly won't ever need a human touch. We respect Rachleff and Wealthfront, but disagree fully with this view. We could cite growing competition from deep-pocketed incumbents, but that's not our main objection. Our view is that bionic advice -- where human skill is augmented with technology -- is the future of the advisory business.