Publications
Publications
- July 2024
- HBS Case Collection
Knowledge-Enabled Financial Advice: Digital Transformation at Edward Jones
By: Lauren Cohen, Richard Ryffel, Grace Headinger and Sophia Pan
Abstract
Edward Jones, a wealth management advisory firm that prided itself on its interpersonal connections and face-to-face interactions, was eager to augment their services with AI capabilities. Built on 1-to-1 close-knit relationships, the firm had more than 15,000 offices conveniently located across the U.S. and Canada. Following the COVID-19 pandemic, Edward Jones’ Managing Partner, Penny Pennington, believed their human-centric approach could be enhanced to better serve their clients by leveraging historical client and calling data to improve the client experience and the customization of advice. In particular, AI's ability to integrate all records of past advisor experiences could deliver hyper-personalized insights and financial solutions. Still, Pennington wondered if Edward Jones was deviating too far from its differentiated approach of person-to-person connections. Considering Edward Jones’ original business approach, how might digitization and AI transform their competitive advantage? Was there a proper balance between the use of AI and human connection? How would Pennington ensure that the AI-generated expertise would properly represent and attest to each client’s specific needs?
Keywords
Fintech; Innovation And Strategy; Financial Advisors; Big Data; Artificial Intelligence; Digitization; Financial Institutions; Business Strategy; Competitive Advantage; Technology Adoption; Business Plan; Technological Innovation; Interpersonal Communication; Communication Intention and Meaning; Communication Strategy; Transformation; Employee Stock Ownership Plan; Disruptive Innovation; Innovation Strategy; Innovation and Management; Innovation Leadership; Knowledge Acquisition; Knowledge Use and Leverage; Customer Relationship Management; AI and Machine Learning; Digital Strategy; Financial Services Industry; St. Louis; Missouri; United States; Canada
Citation
Cohen, Lauren, Richard Ryffel, Grace Headinger, and Sophia Pan. "Knowledge-Enabled Financial Advice: Digital Transformation at Edward Jones." Harvard Business School Case 225-009, July 2024.