Embracing AI in financial services with Franklin Templeton’s Jacque Reardon

Change is the only constant in our world, and the ability to adapt and innovate is more important than ever in the AI era. Enter our latest guest on Humans of AI, Jacque Reardon, the US marketing leader at Franklin Templeton.

Initially skeptical of AI, Jacque’s journey from doubt to advocacy is a testament to the transformative power of technology — even in the highly regulated world of asset management. This episode delves into Franklin Templeton’s pioneering use of AI, from streamlining investment commentary to fostering a culture of innovation, all while navigating the intricate landscape of compliance and security.

From the sales floor to the marketing desk

Not many kids dream about entering the financial services industry — including Jacque. She has a degree in psychology and says she’s applied those skills every day in her various roles throughout her career.

“A bulk of my career has been in sales before marketing,” she explains. “And in my mind, sales is all about relationship management, having emotional intelligence, intellectual curiosity, and really getting to the core of what your client or prospect’s needs are — and then coming back with a consultative solution.”

As she transitioned into marketing, Jacque brought this sales mindset with her. She stresses the importance of staying grounded in the client’s perspective.

“Sometimes you can get a little bit too far away from the client,” she says. “And think, ‘Oh, let’s put together this 16-page brochure. Everyone’s gonna love it.’ And you’re like, ‘No one’s gonna read that.’”

Challenging the traditional narrative of financial services

The financial services industry has long focused on a one-size-fits-all approach to retirement.

“For so long our industry has been like, ‘Save money, save money, and then one day you’ll retire, and then you’ll move to Florida and play golf’ or whatever,” Jacque says. But the landscape is changing, especially for younger generations who have a more personalized view of their financial futures. “I don’t wanna move to Florida and play golf. And who said 65 was the age that you’re supposed to stop working?”

This shift from a linear path towards retirement requires customized investment solutions and a nuanced and personalized marketing approach. Here’s where AI can come in and provide the personalized solutions and messaging needed to engage people on their unique paths.

Adopting AI in a highly regulated industry

Like many other current-day AI advocates, Jacque initially approached AI with skepticism.

“It’s probably akin to when the first time my dad showed me what email was, and I remember in my head thinking like, ‘What is this? This is never gonna last,’” she shares. Her feelings were similar when a colleague showed her ChatGPT for the first time. And in an industry as highly regulated as financial services, she didn’t think it’d ever be for them.

But thankfully, she admits, she was proven wrong.

Franklin Templeton is now one of the pioneers in using AI within the asset management industry. The firm has acquired 10 other companies in recent years, a trend driven by broader industry consolidation. With fewer firms and intense fee pressure, expanding teams and hiring new people isn’t an option. Instead, the firm must do the same amount of work, or more, with fewer resources. And they also need to catch up with the personalization that’s so apparent in other industries.

“We’re met with personalization in pretty much every other facet of our life except for our financial life,” she says. “We have to leapfrog where we are now and get to a place where we’re really engaging not only investors but for us, we interact mostly with advisors and intermediaries. We have to help them solve for this.”

Identifying the right use cases

It was hard to know how to start implementing AI, but Jacque says that Writer helped them realize they could start with just a couple of ultra-specific use cases that could prove immediate ROI.

One common challenge the firm faced was tailoring a standard 200-word commentary for a large cap growth fund to different clients. One client wanted it in 150 words, while another preferred 75 words. This meant a contractor had to manually edit the content to fit each format.

“We were able to say, ‘Okay, is the quality good? How quickly are we doing this, and what’s the actual dollar amount that we’re saving?’ So that was just an important first way to dip our toe in,” Jacque explains. “Now we’ve expanded it out, and we’ve actually worked it into our entire content creation process.”

They then used AI to enforce a style guide. Before the guide, content creation was inconsistent — with questions like whether to use “US” or “U.S.” or “PM” or “pm,” and the Oxford comma (which she loves) left to individual discretion.

Now, with a clear style guide, everyone knows the rules, saving time and ensuring consistency. Instead of spending an hour on a task, it takes just 15 minutes. This has been especially valuable for leadership, like Jacque, who can now quickly handle tasks like writing job descriptions and launch emails.

The firm is now focusing on integrating AI more systematically into their workflows, aiming to make it a proactive agent rather than just a helper.

Moving from curation to personalization with AI agents

Part of making AI an agent involves focusing on creating more personalized experiences for clients. Jacque says that broker-dealers require a more nuanced approach to content. She mentions that they’re automating what used to be manual changes — such as altering specific terms or creating custom content. For example, one firm might prefer “advisor” over “financial professional” and request that all the words be changed.

At an advisor level, Franklin Templeton has invested a lot of time and resources into a personalized resource center. This digital hub ensures that when advisors visit their website, they see a curated version of all the core content they need for the specific strategies they hold with the company.

“So instead of them coming to our website and having to search around for the fact sheet on this and the commentary on this, they’re welcomed by a dashboard that says, ‘Hey Jacque, welcome. Here’s all the stuff you need for your strategies. And oh, by the way, is there anything else you need? And here’s some things that you might be interested in,’” she explains.

Bringing business and tech together from the beginning

Unlike some peers who struggle with best practices and decision-making structures, Franklin Templeton has a clear leader for AI initiatives.

“We are led by a CEO who has her eye on 2095,” Jacque explains. “Like she is super, super innovative, and she’s really pushing our firm to go where the puck is headed versus being reactive to change. Culturally, our firm is really open to innovation. We’re also very lucky that we have a head of AI.”

It takes more than just strong leadership at the top to effectively adopt AI. It also requires a business-tech alliance, especially if you want to avoid the power struggles and tensions tearing some companies apart.

“From a business standpoint, my team’s role is to come in there and really think about the client impact,” she says. “And then our technology team can come in and say, that sounds great, but just so you know, that’s gonna require a build on the backend that will take us six months because of these other priorities that we have.”

In highly regulated industries, the involvement of IT is especially important to make sure any new technologies have proper security, privacy, and compliance layers. Jacque anticipated this hurdle and highlighted the risks of not adopting AI. For example, the use of AI style guides and quality control has significantly improved the accuracy and quality of their output.

“I think that was really an ‘Aha’ moment for some of our compliance partners,” Jacque says, “to say, ‘Oh, okay, now I actually see this can create a significant amount of consistency, better output.’”

Jacque’s advice for navigating the future

Using AI has brought incredible benefits, but the journey has been long, and there’s more to come. Navigating this future requires some very human skills.

Jacque stresses that resilience and change management are key. It’s about helping people think differently and aim higher. The focus has shifted to the skills and support people need. When recruiting, Jacque looks for individuals who are resilient and open to new ways of doing business, not those stuck in their old methods.

“I’m trying to find people who understand like yeah, I’ve been doing this for 10 years, and I’ve had success doing it, but I’m open to other ways of doing it, and I’m intellectually curious about how things could evolve and change,” she says.

She recalled a powerful story from a Darden Business School presentation about firefighters who clung to their heavy tools and couldn’t escape a fire. The lesson? Sometimes, you have to let go to move forward to something better.

“Change is scary,” Jacque says. “It’s tough, but what’s around the corner is really cool. And, to be a part of something like that and to be able to evolve and change and learn all these new things and learn a new way of thinking is, is, is phenomenal.”

Sometimes, the tools and systems we’ve relied on for years can become anchors that hold us back. It’s a lesson that resonates deeply in the world of AI, where the pace of change is relentless and the possibilities are vast.

But as Jacque pointed out, this isn’t just about technology — it’s about people. It’s about fostering a culture of curiosity and openness, where individuals are encouraged to think strategically and look beyond the day-to-day tasks. It’s about building teams that aren’t only skilled but also agile and forward-thinking.

As we move forward, let’s take a moment to reflect on our own resilience. Let’s embrace the change that AI brings with excitement and a sense of possibility. Because what lies ahead isn’t just a new set of tools‌ — ‌it’s a new way of thinking and being.

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