Have you ever had the nagging and recurring thought that you’re just not keeping up? Given the fast-paced world in which we live and the constant barrage of information (and misinformation) we might experience on a daily basis, you’re not alone. Some might call this feeling FOMO – Fear of Missing Out – a term that was popularized by author Patrick J. McGinnis in 2004 in an op-ed published in The Harbus, the magazine of Harvard Business School. Though it existed prior to the article, the catchy acronym had a moment, one that continues to permeate the collective cultural conversation.
FOMO is a natural human inclination manifesting in subtle ways: Compulsively refreshing your social media feed to stay abreast of everything happening. Giving in to the pressure to join a group activity even if you would rather stay home. Rushing to take advantage of a limited time offer. Worrying that you are not running as fast as your peers or keeping up with the latest tech innovations, including AI.
These innocuous scenarios are unlikely to cause significant disruption or distress – unless you let them settle in. When worries about not keeping up or “missing out” settle in, they can overpower the more positive drivers of success such as curiosity, prioritized focus, and commitment.
Being that FOMO entered the mainstream vernacular via a renowned business publication, it is safe to assume McGinnis understood its entrepreneurial ramifications. Keeping the focus on the positive, FOMO can fuel ambition, drive, and strategic thinking. FOMO could also result in positive outcomes like meeting new people or discovering an innovative product. On the flipside, it can be a roadblock to success.
When FOMO manifests in chasing bright, shiny objects, entrepreneurial advisors run the risk of ignoring what works for their teams and their clients There is room for emerging resources like AI, a need to have solution-based discussions concerning cybersecurity, data lakes and data warehouses, future-proofing, and continuous learning. But considerations like these must be balanced and mindful of what will consistently move the needle for growth and stability.
FOMO 2.0: The Fear of Moving Off-Track
As an entrepreneurial advisor myself and now more and more a business mentor and coach to other financial advisors, I’ve had numerous experiences reining financial advisors away from the compelling new thing back to the high-level main thing with the overarching goal of building a successful, sustainable practice. With the rise of AI and all the shiny new objects that present themselves on a daily basis, I think it helps to reframe FOMO today not so much as the Fear of Missing Out but, rather, FOMO 2.0 – the Fear of Moving Off-Track, or falling behind.
My approach emphasizes slowing down to reduce overwhelm, and prioritizes one big problem to solve for in alignment with a big macro goal.
Regarding AI and technology, here are five questions financial advisors might consider to keep FOMO 2.0 from setting in:
- Is the AI tool or technology appealing to you because you need it – or because it is trendy?
- What are the immediate and long-term benefits of the AI or tech solutions under consideration?
- What are the most important short-term and long-term benefits of the AI or tech solutions under consideration?
- Are you letting your emotions dictate your decision making?
- Have you consulted with your circle of trusted consultants and team mates?
Breaking Down the Five Questions
1. Is the AI tool or technology appealing to you because you need it – or because it is trendy?
The first question is interesting because it can warrant a “both/and” answer. AI solutions that fall into the categories of trendy while boosting productivity and improving creativity include Copilot, Fireflies, and ChatGPT. For financial advisors, advisor-specific tools include WealthManagement GPT, AdvisorX AI, Powder AI, and Zocks IO. On the flipsidea, there are plenty of solutions that endlessly inundate our LinkedIn feeds serving no practical purpose for an advisory business or that of a financial advisor’s clients. Any human being could fall prey to being temporarily swayed by a sleek new AI solution, but having a framework to evaluate whether an individual or a group of AI services are optimal for us, or our clients can save time and money.
2. What are the immediate and long-term benefits of the AI or tech solutions under consideration?
After assessing how optimal a given AI or tech product is for your collective business interests, it is important to break this down further. What are its short-term and long-term benefits? Immediate upsides may include enhancing decision-making, completing tasks, and personalizing marketing. Lasting advantages could come in the form of market disruption and innovation, predictive capabilities, risk management, and workforce augmentation. The sweet spot arises when these benefits converge: efficiencies that drive growth, develop a human-AI ready organization, and/or build brand loyalty through targeted messaging. The list of benefits can and should stay high-level to keep us out of the distractive weeds and focused on our macro goals.
3. What are the most important short-term and long-term benefits of the AI or tech solutions under consideration?
Now that you have your list, the next step is leaning into radical honestly, the process of being completely transparent, authentic, and objective in your observation of the situation at hand. What is the most important benefit on your list to achieve your macro goal? If you have been examining multiple AI or tech solutions, zero in on the essential benefit of each platform. For example, if your goal is expansion, granular market and competitor analysis might be the benefit that supersedes all others. Alternatively, if innovation is your primary objective, elevating the user experience may be the principal benefit. This can be a challenging exercise, especially if your reasoning is regularly informed by emotion.
4. Are you letting your emotions dictate your decision making?
Before delving into the ramifications of emotional decision-making, let’s accentuate the positive. Emotions can be a driving force behind an entrepreneurial advisor’s vision for the business. Moreover, an advisor with a penchant for risk-tolerance as well as empathy and intuition is more likely to take calculated gambles for the betterment of the company. When it comes to AI and tech decision-making, this may show up as choosing to pilot a solution to beat competitor adoption or drive client loyalty. The choice could be rooted in a general overconfidence in its capabilities, wanting to “keep up with the Joneses,” an attachment to an idea or concept, information that backs up a confirmation bias, or the original FOMO. Moreover, if an entrepreneurial advisor makes an AI or tech investment and has yet to see desired outcomes, a “sunk cost fallacy mindset” could keep them from seeking out the right solution.
5. Have you consulted with your circle of trusted consultants and team mates?
As the saying goes, hope is not a strategy. Leveraging a trusted network for guidance, perspectives, and success stories is the smarter approach. Whether it’s a study group of likeminded advisors dedicated to lifelong learning and professional development, or an esteemed circle of consultants and trusted team mates, a strong peer network can be a powerful asset, especially when it comes to curtailing emotional decision-making and evaluating AI and tech solutions. In addition to acting as a sounding board and brainstorming resource, an advisory board can offer case studies proving out the merits of AI and tech products, especially if they are in the same industry.
Free Yourself from FOMO 1.0 and FOMO 2.0
By acknowledging the fear of moving offtrack, and for that matter the original FOMO, fear of missing out, you can gain clarity on how AI and technology can secure business growth and viability. Think of the five questions as an agile framework to help you in making informed decisions, prioritizing long-term goals, maintaining emotional balance, and utilizing a reliable network. Remember, calculated risks and strategic implementation of innovative technologies can propel your business forward, but staying focused on your core vision and building a strong support network are the cornerstones of lasting success.
Embrace the journey, empower your business by having an eye for the right solutions, and be weary of shiny object syndrome.
Contact Travis for a confidential conversation.
Author
Travis Alexander, CRPC®
CHIEF EXECUTIVE OFFICER
