This comes at a time when artificial intelligence is being integrated in the advice process to create efficiencies, as well as industry bodies warning of some of the dangers of clients and unadvised Australians using AI to get advice.
According to Netwealth’s Advising the connected client, the ubiquity of AI in the daily lives of Australians is seeping into how they receive their financial advice, in particular for clients under 45.
“82 per cent of Australians have already used AI tools such as ChatGPT, Gemini or Claude,” the report states.
“47 per cent of Australians currently under advice report using AI tools weekly or daily, compared to 36 per cent of Australians overall.”
For clients under 45, in particular, Netwealth said advisers need to be aware of the prevenance and impact AI is having on the way they interact with and gather information.
“AI chatbots are starting to make their mark when it comes to planning, particularly for the 45-and-under bracket. For example, for setting investment and financial goals and planning, 18 per cent of the Emerging Affluents and 16 per cent of the ‘Emerging Mass’ – all aged 45 and under – prefer an AI-enabled chatbot.”
Moreover, 17 per cent of ‘emerging affluents’ are also happy for an AI-enabled chatbot to pick where their investments outside of super are placed. A similar number are also happy to allow AI to adjust their investments over time (16 per cent).
“For clients under 45, AI-enabled chat and self-service can play a meaningful role in education and information access. However, it must be integrated with human oversight at key decision points,” the report says.
However, ASIC has recently warned of the potential dangers of using AI advice, with platforms such as GhatGPT often giving advice that encourages high risk investments likely highly inappropriate to the financial capabilities of a young person.
“High levels of trust in often unreliable sources by some young Australians is contributing to riskier financial decisions such as investment in cryptocurrency based on limited or unproven information,” ASIC said at the time.
“Anyone considering making a financial decision based on information they have seen online should take a moment to sense check and compare it with trusted, evidence-based sources.”
AI’s ability to give plainly wrong and misleading information (known as “hallucinating”) that is not backed up any sources also exposes users to unnecessary risk when looking for financial advice.
Like many have suggested in the past, Netwealth highlights technology should only be used to enhance and compliment the human side of advice, not replace it.
“Make human interactions count,” the report says.
“Proactive support around key life moments, strong coaching through trade-offs and uncertainty, and genuine emotional intelligence remain difficult for technology to replicate and are central to perceived adviser value.”
