This Forbes article is a great introduction for anyone who hasn’t considered all the opportunities associated with an increasingly aging population. The thesis is that AI can be used to help manage a wide range of solutions that will benefit the aging, roughly split up into two buckets, WealthTech and AgeTech:
“There are over 1 billion people currently in retirement. New types of financial institutions are evolving to satisfy the needs of this aging population. Investment banks, pension funds, and insurance companies are developing new business models, and are using AI to improve the quality of the analytics used to formulate them. In the near future, the synergy between innovative AI and wealth management will lead to the creation of a new financial institutions optimized for the aging population. Age-friendly Longevity banks will make banking services easier and safer for seniors.
Over 150 financial companies are already developing innovative WealthTech and AgeTech products and services and AI is central to the process. AI drives Longevity, Longevity enables AgeTech, AgeTech enables WealthTech, and WealthTech supports interest in Longevity as an industry. This makes the ongoing growth of AgeTech and WealthTech inevitable. Many innovative financial institutions are in development such as Longevity-focused venture funds, Longevity-AgeTech banks, Longevity index funds and hedge funds, and even a specialized stock exchange for Longevity-focused companies and financial products.”
The article doesn’t make an explicit argument why AI is required to enter the identified markets but then all of the financial instruments it identifies are indeed being heavily impacted by AI, so I guess it’s a forgone conclusion.
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group