Moore’s law is the observation made in 1965 by Gordon Moore, the co-founder of Intel, that the number of transistors on a chip doubled every year while the costs were halved. This may have slowed down in recent years but still demonstrates the concept of exponential growth. As computers became smaller and faster, the transistors and microchips processing the electrical signals became more efficient and the costs decreased as a result.

Over fifty years on, nearly every area of modern society sees the benefits of Moore’s law being put into practice. Mobile devices such as smartphones and tablets all work because of the tiny processors within them. Smaller and faster computers have improved transportation, healthcare, education and energy production. There is no reason why the financial industry should be any different.

Experts predict that computers will reach the physical limits of Moore’s law in the 2020s as the temperature of the transistors make it impossible to create smaller circuits. However, it seems likely scientists will just invent new technology. After all, cloud computing, wireless communications and the Internet of Things have all played a role already in contributing to further innovation.

In any event, it seems that Artificial Intelligence will bring Moore’s law back to life to some extent. By forcing the tech industry to come up with new processors which can perform more calculations per unit of time, while maintaining power consumption and price, AI is reinforcing the same principles. More processing power will enable more demanding algorithms which will drive the demand for more data which in turn will require more processing power and so on.

So what does all this have to do with advisory firms? The underlying message is don’t get left behind. Make sure you are embracing change and seeking ways to introduce those innovations that improve efficiency in your business. Have you adopted an agile wrap platform solution, for example, or are you sticking with your legacy platform of old? The firms that succeed will be those who harness the power of technology and use it to their advantage in terms of sophisticated portfolio modelling, automated communications and better investment vehicles. Done correctly, capitalising on Fintech will mean you see an increased performance at lower costs in accordance with Moore’s law.