New global research on the use of AI in financial planning found that more than half of the 6,200 individual practitioners surveyed are adopting AI in some form, and advisers are clear that with the rise of AI, human skills are becoming more important than technical skills.
Speaking at Financial Advice NZ’s National Adviser Conference in Christchurch earlier this month, Dante De Gori, the Global CEO of the Financial Planning Standards Board, told attendees that 78% of the advisers his organisation surveyed believe AI will enhance their ability to deliver advice.
They say AI will support the delivery of services and provide efficiencies.
While there have been many reports on how institutions are using AI, the FPSB wanted to research what individual practitioners are doing. Its full survey has not yet been published.
De Gori said that much of advisers’ AI use is about the efficiency in collecting data and supporting clients, in client engagement, client on-boarding and in back-office efficiencies.
In his view the future focus is whether or not AI is going to be used in actual advice delivery. Most of those surveyed saw the most potential for AI in collection of client information, analysis of client’s financial status and looking at developing recommendations.
…There is still concern whether advisers can trust the output of AI – how do you validate it, how do you ensure that what is being produced is accurate…
However the global respondents saw the biggest risk and concerns as being around data privacy, accuracy and reliability. There is still concern whether advisers can trust the output of AI – how do you validate it, how do you ensure that what is being produced is accurate?
As to what advisers need to feel more comfortable about using AI and being more assured about the technology, De Gori said responses pointed to education and training in AI as being very important.
He noted that the majority of advisers’ work, input and value-add, is in the creation of the financial plan however he said that AI tools are going to be able to do that in a way that will even surpass advisers at some point in time.
De Gori pointed to a shift away from the building of the financial plan to the delivery of the plan, its implementation and to coaching, guiding and supporting clients.
…Advisers’ value proposition is in ensuring the financial plan stays alive, is implemented and is adapted and changed…
Advisers’ value proposition is in ensuring the financial plan stays alive, is implemented and is adapted and changed as the client needs.
He said the FPSB has introduced a compulsory unit on the psychology of financial planning and has a commitment to provide support for organisations to have the materials and knowledge to support, train and upskill financial advice professionals.