by Kim Savage
A snapshot of AI use by financial planners globally has found more than half are using it in their businesses despite sharing some of the common concerns with other professions about the rapid technological shift.
The initial results of a survey by the Financial Planning Standards Board of more than 6000 individual practitioners in finance across 24 territories were presented at the Financial Advice New Zealand annual conference earlier this month.
The research found 54% of respondents are either using or piloting AI in their business, with 10% planning to in the next 12 months, and 35% with no plans at all to use AI. However, most respondents believe AI will allow them to deliver better service to their clients, with potential uses likely to be in collecting client information, analysing data and developing recommendations.
The top concerns for financial planners are the same as those felt in other sectors, with 47% worried about data privacy and cybersecurity and 42% worried about accuracy and reliability of outputs.
“We got an overall response that there is still a concern from the advice community on whether or not we can trust the output of AI,” says Dante de Gori, FPSB global chief executive.
“How do you validate? How do you ensure what is being produced is accurate? And I think that's the challenge in terms of solving those types of things.”
The survey asked what financial planners need to feel confident in their use of AI and education and training came up as the top priority.
“This is something that from a global level, we are looking at producing, how do we support advice professionals in the use of AI and utilizing AI and delivering advice with consumers,” says de Gori.
“So I think the trend here in particular is going to be looking at solutions to support and educate the financial advice professionals in respect to using AI going forward, as well as the investment in or the purchase of AI.”
Not surprisingly, larger institutions are the ones investing in AI technology, and while some smaller practices are developing their own tools, most are using third party provider solutions, he says.
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