Harnessing Blockchain and AI for Wealth Management: Chainlink’s Oracle Technology and the Future of Financial Advising

The integration of Chainlink’s oracle technology into financial advising systems has the potential to revolutionize the industry, according to Laurence Moroney, former AI lead at Google and current Chainlink advisor. AI agents, semi-autonomous systems that execute workflows, have been gradually gaining prominence in the world of artificial intelligence. Nevertheless, for these systems to perform optimally, they require access to confirmed information.

Moroney posits that the future of the blockchain industry is largely contingent on Chainlink’s oracle technology, which allows for the provision of real-time information from multiple independent sources. This eliminates the reliance on a single data vendor, which has been a long-standing issue in the industry.

Consider a scenario where a client, Michael, consults his financial advisor, Sarah, for reassurances about his retirement strategy. Traditional advisor-client relationships have been built on trust, verbal commitments, and performance records. However, this approach often led to a compromise in quality and inefficient use of resources.

Moroney suggests the use of blockchain and AI throughout the advice process. By integrating oracles, Sarah’s advice could be underpinned by live updates on critical financial benchmarks such as interest rates, economic indicators, and industry indices. Michael, in turn, could verify the sources of these inputs, eliminating the need to trust the firm’s internal reports.

These oracles form a part of a comprehensive blockchain-based toolkit. Moroney suggests the use of smart contracts with verifiable credentials, which would give Michael the ability to review Sarah’s qualifications and track record. At the same time, Sarah could use zero-knowledge proofs to assure Michael that she is following his preferred strategy while maintaining the confidentiality of the firm’s proprietary information.

AI takes on the role of information handler in this setup, checking the authenticity of data, reading client information, and assisting in the creation of proofs. It also uses Chainlink’s data to trigger smart contracts, update users, and make adjustments to portfolios.

In Moroney’s words, “Trust has historically been built through face-to-face interactions and reputation. What if instead we had a verifiable system—one where algorithms prove they’re working in your favor without revealing trade secrets?”

Smart contracts also offer the advantage of automation. Actions can begin immediately upon agreement, costs can be assessed in real-time, and system parameters can be monitored. This streamlined process provides a clear and efficient experience for the client.

An effective IT framework, Moroney points out, also benefits advisors. They can demonstrate their performance without compromising client confidentiality. As he notes, “Advisors can differentiate themselves through provable outcomes.”

At the heart of this transformative potential lies Chainlink’s infrastructure. AI agents require trustworthy and secure external data to make accurate decisions. In the future, oracles are likely to play a pivotal role in the construction of digital trust, while also serving as reliable data providers.