AI to help streamline repetitive workflows in advice firms

While AI will likely never replace the value, trust and expertise inherent with a face-to-face meeting with a financial adviser, many of the more manual, repetitive tasks that are still essential to running an advice firm can benefit from the implementation of automation tools.

Tasks such as compliance checks, billing and invoicing, document generation and marketing activities for firms that do so are all essential tasks within advice workplaces that, according to Netwealth, can be automated, freeing up time for advisers to work elsewhere. AI automation tools can also help eliminate the potential of human errors in these tasks and increase output consistency, the firm said.

The operational productivity and efficiency can mean you end up “doing more with less”, which Netwealth highlighted can help facilitate the potential to scale within a business. During periods of growth, which often will see an increased level of employee turnover, organisational knowledge can be preserved, which can “help with training during times of change management”.

Automating the repetitive but essential tasks in the workplace can also help reduce the burden on employees emotionally, freeing them up for potentially more fulfilling tasks, such as fac-to-face meetings with clients.

“If you drive productivity in advice practices, they can drive down the cost of advice that they charge their investors, and that has a direct benefit through to investors,” AMP group executive for platforms Edwina Maloney told the Stockbrokers and Investment Advisers Association conference in May, highlighting the benefits of greater AI facilitated automation in the workplace.

Some firms are already introducing more automation into their work environments, including Padua Solutions’ recent acquisition of Wealth Data and Yarra Lane’s “robotic process automation consulting service” it developed with Vital Business Partners.

Though many feel as if investment in this sector is lagging behind where it should be, with Jason Entwistle, director of strategic development at HUB24, going as far as to call the lack of investment a “disgrace”.

“There’s some really cool solutions out there. The regulatory environment has changed to enable those solutions, but the tech hasn’t caught up with enabling them to be modelled effectively through the advice tech,” Entwistle said in May.

With many advisory businesses looking to scale up in the wake of legislative changes, automation could be a valuable tool. However, the process of introducing greater automation in the workplace is not a simple matter of installing software and hoping it will work.

“A key step in preparation is to focus on your processes, and to uncover which ones could be ideal for automation,” Netwealth said.

According to the tech firm, there are several ways advisory firms can decide which processes for automation will best suit them:

1. Unpack workflow and understanding what sequence of jobs to complete. During this process, ask the question “does one task trigger another seamlessly?” and can this task be completed without the labour of an adviser. Also consider the frequency and complexity of the task.
2. Conduct performance analysis, finding processes that are slowing workflow or where mistakes are being repeatedly made. Onboarding a new client, for example, can often take weeks to simply get all the necessary information, Netwealth said.
3. Consider the cost and benefits for your firm. For a smaller operation, the cost of installing the correct hardware and software, as well as training staff, might prove too great. Also consider if this investment will save your business time and money in the future.
4. Finally, looking for risk or compliance challenges within products you are interested in, but also seeing how it could minimise the risk of non-compliance and “make it easier to incorporate regulatory updates, and to maintain accurate records”.

Well founded doubts and concerns surrounding the efficacy of AI within the workforce will likely persist for someone, however Netwealth said that not considering the benefits of automation in the advisory workplace could mean a firm begins to lag behind those which embrace current innovations.