A Review Of Generative Ai Applications In Financial Advisory Services: Current Developments, Limitations, And Opportunities

Abstract

Artificial Intelligence (AI) has become a digital transformation platform in any industry now, and Generative Artificial Intelligence (GAI) is among the most substantial developments. Compared to older AI systems, which are focused on classification and prediction, GAI has the unique ability to generate original and valuable data and content, including text, images, and financial simulations. GI is transforming the way business activities are conducted in the financial sector by enhancing automation, accuracy, and customization. This synergistic effect of the two enables financial institutions to conduct complex tasks, such as portfolio optimization, risk prediction, fraud detection, and real-time market analysis, more efficiently and with greater accuracy. Financial advisory services have a particular advantage in capitalizing on GAI's capacity to offer client-specific investment recommendations, an automated decision-support system, and flexible insights tailored to client profiles and market conditions. Ethical governance, model transparency, computational costs, and data privacy pose challenges to the adoption of GAI. To eliminate these limitations, explainable AI (XAI), regulatory compliance, and human-AI collaboration should be enhanced. The paper investigates the advances, uses, constraints, and prospects of GAI in the world of finance, particularly in financial advisory services. The findings suggest that GAI will continue to transform financial processes and create a new paradigm in which human skills and AI intelligence will work together to drive innovation and sustainable value generation.