The AI revolution has irreversibly changed financial advice, with many advisers’ typical day looking fundamentally different to how it did just two years ago. The implications of these changes are vast, with AI and other technological innovations delivering the potential to reduce the cost to serve and in turn, bring more clients into the advice fold.
Many of the advisers we speak to use AI in several ways to manage their time and keep a lid on costs. Our research shows more than two in five practices are active users of AI, with advisers, paraplanners and other staff using it to transcribe meetings, populate fact-finds, and pull-out important parts of the client puzzle.
Meanwhile, findings from the most recent Adviser Ratings Landscape Report shed light on likely future trends, with almost three-quarters of surveyed advisers showing a willingness to adopt AI.
“By streamlining documentation processes through AI, practices can potentially reduce the delivery cost of advice – a critical step toward bridging the gap between what consumers can afford and what advisers currently charge,” the report said.
Interestingly though, Adviser Ratings found almost half of the surveyed group used ChatGPT as their platform of choice, with closer to a third paying for premium versions of AI tools. For the ratings platform, this suggested “significant room for deeper integration of premium AI solutions”.
It comes as conversations are increasingly taking place in advice circles about how not all AI is equal or entirely trustworthy and risks can emerge if it’s not managed properly. Last year, Integrity Compliance managing director Rhett Das argued the application of AI could fall into a legal grey area.
Inaccurate AI outputs can not only create inefficiencies but also pose serious risks if integrated too tightly into advice workflows without oversight.
There’s also the matter of bias and using client data to train AI. Advisers and practices must be able to be confident the AI models and platforms they’re using will keep their clients’ data safe and secure, while providing output that can be trusted. This is also where licensees, tech partners and regulators need to step up – providing exceptionally clear guidance on responsible use, including when and how AI outputs can support, but not replace, human advice.
Trusted AI, the client experience and the adviser
Indeed, for us, the next frontier is integrating AI in a way that advisers can truly trust and feel safe with to consistently use to improve the client experience. Such improvements initially came through adviser time saving applications that could be reinvested in face-to-face client meetings. But as offerings evolve, we expect the future will see the greater availability of smart tools clients can interact with on a regular basis to stay engaged in their advice journey.
AI applications will also become more tailored and intuitive to ensure the connection between advisers and their clients is unbroken. For example, we expect to see more proactive conversational AI tools to remind advisers of significant dates and key updates, adjustments and review deadlines.
However, these tools can’t operate in silos – they need to be integrated into other platforms to make the experience seamless for both the adviser and the client. By embedding AI within trusted, compliant ecosystems rather than relying on standalone tools, advisers can also ensure client data remains protected under consistent security and governance standards.
We’ve always said AI won’t replace human advisers, who can truly understand the emotional investment the advice journey entails. However, we’re already starting to see AI’s potential to build closer bonds and show clients the value of the service advisers are providing. Simultaneously, in reducing the cost of delivering advice, advisers can make this value known to a greater number of clients, reducing the well-known advice gap. Again though, this all hinges on using integrated systems and trusted forms of AI.
Looking ahead, the opportunity lies in AI that enhances the uniquely human aspects of advice: trust, empathy and personal connection. As tools become more capable, we believe advisers who thoughtfully integrate AI into their practice, while maintaining a strong compliance and client-first lens, will be best positioned to grow, scale and deliver a more compelling advice experience.
Nick Eatock, CEO and co-founder of intelliflo.
Great comments Nick and David
The real issue in all of this is when AI becomes totally capable of making its own investment decisions without any outside input. In other words totally sentient.
It is relevant to say there will be or may be operational improvements in Financial Advice Firms as indicated by the comments above. Where it really matters however, in terms of advice ,is whether the advisor is prepared to recommend something that is produced by algorithms without direct input. It is” hoped” that training, professional standards
and risk management protocols as well as legislative, regulatory processes move quick enough before the industry becomes overwhelmed and just accepts what is laid before them with possible large scale consequences.
Note these comments have come from someone who has had direct machjne learning experience of which the Govrnment organisation I worked for has received awards
Strong article Nick. But one thing the industry keeps overlooking is the ‘real’ client experience. Adviser-facing AI will soon be standard across every licensee. The real shift is happening quietly in the background: AI designed to support the client’s life, needs, behaviour and wellbeing. When that is released shortly, clients will choose advisers who plug into platforms that genuinely understand them, and not just automate admin.