In the ever-turbulent sea of technological progress, Artificial Intelligence (AI) is the latest wave making a splash, especially in the world of financial planning.
According to a recent survey by Schroders UK, in November 2023, a staggering 73% of advisory firms are gearing up to welcome AI into their fold within the next five years.
If you’re toying with the idea of bringing this technology into your practice, let’s unpack what that might mean, with all its quirks and quibbles.
The upsides of AI
- Customer Service, upgraded: Imagine a world where your clients receive immediate responses at any hour thanks to AI chatbots. These tireless helpers manage enquiries and transactions around the clock, liberating your human advisers to tackle the meatier issues that require empathy and a human touch.
- Efficiency on steroids: AI has a knack for taking on the mundane with unparalleled zest. Data entry, document processing – tasks that would normally numb your brain – are all in a day’s work for AI, leaving your staff free to cultivate relationships and think big, the kind of work that might actually merit a coffee break.
- Compliance, streamlined: Let’s face it, compliance is as exciting as watching paint dry, but it’s crucial. AI can zip through data like a hot knife through butter, making sure you’re on the right side of your compliance officer, without the usual drain on your resources.
The downsides of AI
- The human touch at risk: For all its prowess, AI can’t replicate the reassuring presence of a human adviser. Clients still value the warmth of a personal connection, and an overreliance on digital chatter can leave them cold. Striking a balance is key; too much tech can feel like sending a robot to do a human’s job.
- Bias, the unwanted guest: AI, bless its electronic heart, still relies on the data we feed it, and sometimes this data has biases baked in. In the sensitive arena of financial advice, these biases could skew advice and create inequities that are hard to undo. Vigilance is crucial to ensure fairness.
- Overdependence on gadgets: There’s a risk your advisers might start taking AI’s word as gospel, which could dull their analytical skills. It’s important to remember that AI is a tool, not a replacement for human judgement.
- Job security jitters: The spectre of job losses haunts any discussion about automation. Yes, AI might streamline certain roles, but this also frees up folks to engage in more meaningful and creative work – assuming, of course, they’re given the chance.
Incorporating AI into your financial planning firm isn’t just about jumping on the bandwagon – it’s about making sure that this powerful tool serves to enhance, not undermine, the human elements that define your service.
Think of AI as a hyper-efficient assistant, ready to take on the grunt work so you can focus on what really matters: your clients.
Get in touch
If you’re looking for a specialist to help you with your exit planning, The Exit Partnership can help. Email contact@theexitpartnership.co.uk or call 0113 4656 111 to find out how.
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