Praemium’s AI & Integrations report has found that advice firms with strong growth intentions often have high levels of digital integrations, which can correlate with an increased tendency towards increased AI adoption.
According to the report, 65 per cent of those exhibiting such growth plans are already using artificial intelligence (AI).
The report’s findings revealed that 27 per cent of advice firms have a high level of digital integration, though high-net-worth advisers (33 per cent) were more likely to fall under this category compared with general advisers (21 per cent).
Meanwhile, 39 per cent of advisers report using AI in their work and a further 38 per cent stating intentions to incorporate this technology over the coming year.
Although there are a number of reasons advisers are taking to AI so strongly, the overwhelming majority do so in hopes of increasing business efficiency (89 per cent), automating routine and repetitive tasks to free up time for other, more technical tasks.
Advisers also noted hopes of improving the quality of their work (38 per cent) through the use of such technology, in addition to helping them better understand complex information (23 per cent), which could, in turn, increase the speed that they are able to reach decisions (38 per cent).
How are advisers using AI?
While there are a number of ways in which advisers are utilising AI technologies, the most common use was in managing client relationships and communications tasks, with six in 10 (60 per cent) indicating as such, which the report said is in recognition of AI’s ability to automate and personalise interactions while ensuring timely and relevant interactions.
The report also noted considerable use of AI in assisting with documentation (41 per cent) and compliance reporting (33 per cent) as a means of reducing the risk of human error while saving advisers time on administrative tasks.
Furthermore, AI has also begun to work its way somewhat into more complex areas, with 31 per cent reporting the use of this technology in financial planning, and an additional 49 per cent looking to incorporate AI in this way over the next year.
Others are utilising it for investment research (22 per cent), financial needs assessments (10 per cent), risk management (5 per cent) and portfolio management (5 per cent).
Although the relatively widespread adoption of AI across the industry is evident, the report noted some barriers hindering progress. Namely, the considerable effort, time and resources required to overhaul existing systems to allow for the integration of AI.
“Many firms underestimate the complexity or length of time for the transition, leading to incomplete implementations and potentially abandonment of the process midway. The effort involves not only financial investment but also significant time and effort in training staff and ensuring system compatibility,” it said.
To ease some of the associated challenges, the report recommended taking a staggered approach to AI adoption, undertaking a series of smaller projects to reduce disruption to the business while still allowing for progress towards the final goal.
What are the programmes advisers are using?
singularity folks! Have we learnt nothing from skynet ?
We are playing a very dangerous game with AI.
Good