Sunday Email: VR / Processes

Read time: ~8.30 minutes

Happy Sunday!

Every Sunday I offer strategies for the week ahead and a thought to fuel your action.

I recently completed my collection of Apple products with the addition of the Apple Vision Pro.

This latest purchase was a bit of an “out there” choice, even for me, but curiosity got the better of me—I just had to experience it for myself.

Now, let me be clear: I’m not the type to jump on every tech bandwagon.

But when I do, it’s because I see more than just a shiny new toy; I see potential. With the Vision Pro, it’s about more than sleek design or intuitive features—although, in true Apple fashion, those are impressive. It’s about envisioning the future of immersive technology and how it might reshape the way we work and live, particularly in our field of wealth management.

Setting up the Vision Pro was an experience in itself. The device began by scanning my eyes, followed by a sequence where I held my hands up for it to “learn” them. Then came a pinch training exercise—a simple gesture that now controls navigation in this immersive world. Imagine pointing your eyes at an app icon in the Vision Pro’s display, giving a subtle pinch with your fingers, and watching the app spring to life—no need to wave your hands around or press any buttons.

The real kicker, though, was how effortlessly my Apple ID carried over into this new environment. My digital life—messages, settings, apps—all seamlessly integrated across my Mac, iPhone, iPad, and now, the Vision Pro. That’s Apple’s magic at work: the consistency across devices is as natural as flipping a switch.

But beyond satisfying my tech curiosity, I had a bigger mission in mind: to leverage this technology as a tool in building out a new innovation lab experience for our team.

As a company we’re diving into the possibilities of virtual reality (VR) and the potential it has for enriching our work. My early exploration with the Vision Pro has opened my eyes to the parallel journeys of VR and artificial intelligence (AI), each at different stages of maturity but both poised to disrupt industries—ours included.

I’ve been a fan of VR since I first strapped on a Meta Oculus 2 a few years ago. Back then, the technology felt more like a novelty than a business tool. However, as I’ve continued researching both VR and AI, it’s clear that while VR is still in its infancy, the path it’s on mirrors the evolution AI has undergone over the past decade.

The meteoric rise of AI didn’t happen overnight.

Several key factors aligned to turn what was once niche technology into the ubiquitous tool it is today. Accessibility, applicability, and cost were the hurdles AI had to overcome.

In its early days, AI was inaccessible to most—requiring specialized knowledge, expensive hardware, and considerable resources. IBM Watson’s triumph on Jeopardy, while groundbreaking, didn’t offer practical applications for everyday use.

Fast forward to today, and AI is everywhere.

Accessibility exploded with tools like ChatGPT and Microsoft CoPilot, now integrated seamlessly into our daily lives through familiar devices like smartphones and laptops. AI’s applicability has grown, too, offering value across industries from marketing to finance, while also helping the average person with tasks like crafting a perfect resume or planning a family meal.

And the cost? It’s free.

These shifts in accessibility, applicability, and affordability paved the way for AI’s widespread adoption.

VR, by contrast, is still navigating these challenges. Specialized equipment, like VR goggles, remains a barrier to accessibility. The applicability of VR is also limited, with certain industries seeing value, but widespread adoption remains elusive. And then there’s the cost—both for consumers and for companies developing VR experiences, making entry into this space more challenging.

Yet, VR’s story isn’t over; it’s just beginning. Like AI before it, VR is on the cusp of finding its moment. The question is: when (not if) will that moment arrive, and what will it take to get there?

The path to mainstream VR adoption may be slower, largely because it requires consumers to adopt a new device—something that always takes time. Unlike AI, which integrated smoothly into tools we already used, VR demands new habits. Consumers must embrace goggles or some as-yet-undeveloped sleeker solution. I believe we’ll see this evolution over the next few years, especially as the hardware becomes more refined.

One of the fascinating aspects of this journey is how different immersive technologies are converging.

We’re familiar with augmented reality (AR), which overlays digital elements onto the real world (think seeing how a couch would look in your living room using your phone). Then there’s virtual reality (VR), which immerses you in an entirely digital world—whether that’s exploring a new city or taking a virtual walk through Augusta National Golf Club (yes, I did that with the Vision Pro, and it was awesome).

And then there’s mixed reality (MR), where the physical and digital worlds interact. This hybrid technology is being used in fields like medicine, where surgeons can view X-rays superimposed onto a patient’s body, allowing for more precise procedures.

While these technologies are advancing at different paces, the potential for their integration is undeniable.

The Metaverse, despite its reputation as a playground for gamers, is another part of this puzzle. Companies like West Elm and Nike are already dipping their toes into this digital world via a platform called Roblox, exploring new revenue streams by selling virtual products. Just as companies once expanded globally to sustain growth, they may soon turn to digital realms for their next channel for revenue growth.

With lower costs to produce products, infinite amount of space to sell it and low human capital needs, a digital universe can provide extreme margin for companies looking to grow new revenue streams.

So, what does this mean for us in the wealth management industry?

While VR’s full potential is still unfolding, I see real applications emerging—not tomorrow, but soon enough.

Imagine sitting down with a client and taking them on a virtual tour of potential vacation spots or even guiding them through different lifestyle scenarios based on their financial decisions. Rather than relying solely on projections or descriptions, clients could immerse themselves in these experiences and make more informed choices.

The power of visualizing and experiencing a future life in VR goes beyond charts and numbers—it’s transformative, 10x better. Whether it’s simulating different financial outcomes or exploring a future home, the ability to “live” these scenarios will provide a level of insight that no traditional method can match.

There’s also potential for VR in training and development within our industry.

A particularly exciting example I encountered is an app called Floreo, designed to help neurodiverse individuals practice life skills through VR. The app immerses users in scenarios like navigating a bus stop or interacting with others in various emotional states. A teacher guides them through these exercises, allowing for repetition, feedback, and growth—all in a safe, controlled environment.

Now, translate this concept to the financial advisory world. Imagine a young advisor going through hundreds of client meetings in a month—each simulated to cover different situations and market conditions. They could receive real-time feedback, analyze their performance with senior leaders, and quickly iterate on their approach. It’s a level of immersive learning that could accelerate advisor development and ultimately enhance client experiences.

While we might be years away from widespread adoption, virtual reality is far from a passing trend.

Much like AI’s journey, VR is steadily advancing, and its integration into our daily and professional lives is inevitable. The real tipping point will come when immersive technology becomes as intuitive and accessible as our current devices—when it fits seamlessly into our routines rather than requiring a drastic change in behavior.

I’m convinced that the early failures of technologies like Google Glass are paving the way for the success of the next generation of immersive tools. Much like how Webvan’s failure laid the groundwork for Instacart’s success, today’s missteps will lead to tomorrow’s breakthroughs.

Virtual reality may not impact your business today, but don’t write it off just yet.

The landscape is shifting, and those of us who stay curious and open-minded will be well-positioned when VR finally hits its stride.

A Thought To Ponder This Week

The number of firms managing 100+ clients is growing rapidly over the past 15 years.

The number managing less than 100 clients is flat.

Our businesses are growing.

And we are being asked to do more.

More services for more people and the same allotment of time.

This forces us to hire more people.

Which creates the potential drop off in experience as the initial small group of employees are further removed from every end client.

We must work to create an operating model to serve the families, serve the team and grow the business.

Jon Moeller, the CEO of P&G, puts it best: “In the ever more complex world we live in, we must balance the needs of an increasing number of constituents - including consumers, employees and share owners - to continue to drive balanced growth and value creation.”

We are moving further away from the days RIAs were mom and pop solo shops.

We must professionalize ourselves to ensure we continue to effectively serve our families.

As we head into the week, what is one area of the business you think could utilize more elaborate processes to ensure efficiency and desired client experience?

Work on that process.

The best is ahead!

-Matt