AI integration in financial advice is advancing rapidly, though compliance remains a key hurdle.
- A significant 57% of financial advisers highlight the need for improved compliance when using AI.
- AI tools like ChatGPT are broadly used for client onboarding and data collection among advisers.
- The future of financial advice is divided between digital platforms and in-person meetings.
- Financial advisers plan to enhance AI usage, foreseeing increased efficiency and service quality.
The integration of AI into the financial advice sector is progressing swiftly, with a notable emphasis on the requirement for enhanced compliance measures. According to a recent poll conducted by AdviserSoftware.com during its Artificial Intelligence in Financial Advice (AIFA) conference, 57% of financial advisers are calling for better compliance processes to fully capitalise on AI’s potential in providing advice.
AI tools, including ChatGPT, are becoming integral to advisers’ workflows, particularly in the areas of client onboarding and data collection. These tools are also increasingly used to generate suitability reports, underscoring their growing importance in the financial advice journey.
While the debate about the future of financial advice continues, with over 65% of surveyed conference attendees believing it will primarily shift to online portals, approximately 33% still value regular in-person client interactions, suggesting a blended approach may be the way forward.
Ian McKenna, founder of AdviserSoftware.com, has highlighted the transformative power of AI in the financial sector, describing it as both a significant opportunity and a potential threat. He envisions a future where AI closes the advice gap and predicts that free technical financial advice could become a reality within a decade.
The survey also showed that almost all advisers (97.4%) intend to expand their use of AI, anticipating that it will further streamline operations and enhance service delivery. McKenna advises that for advisers to stay relevant, they must focus on the psychological and behavioural elements of advice.
As AI continues to transform financial advice, advisers must address compliance challenges to fully benefit from technological advancements.
