Many financial advisors worry that AI will soon make them redundant. The opposite is true: it makes them better at their job.
In the working world, many people see artificial intelligence primarily as a rationalisation tool for cutting jobs — a competitor of themselves. The financial sector is no exception. Talk to financial advisors anywhere and you'll find considerable anxiety about being made obsolete by AI at some point.
But as the topic becomes ever more ubiquitous, the fear of the unknown seems to be slowly fading. Rightly so: AI can learn, but it only functions within the parameters programmers define for it. For brokers and financial intermediaries, this means AI is most useful in the administrative domain — while in actual advisory, the human remains irreplaceable. Which is also what clients want.
Studies show that 82 per cent of consumers trust people more than machines. That is an advantage advisors can leverage by acting as honest advocates for their clients' interests.
Advisors Remain the Primary Contact — Not AI
When advisors guide clients together through the advisory process on screen — ideally in an interactive format — clients become active participants. There is no greater transparency or traceability than that.
Financial advisors therefore remain the first point of contact for clients. They use AI only in the background: to generate calculation suggestions, draft formulations or conduct general research. ChatGPT is a practical tool for this. But advisors must of course verify the suggestions before making a recommendation, because liability for poor advice remains with the advisor regardless of AI involvement.
AI Without Human Accompaniment Will Remain a Future Fantasy for a Long Time
Market research shows that 81 per cent of consumers view AI's round-the-clock availability as an advantage. This is only true in the context of self-service functions — where it comes to technical or administrative matters handled via chat or virtual assistant. At an advisory level, using AI without human accompaniment is likely to remain a distant prospect for a long time given its inherent limitations.
Financial advisors can actually turn this logic to their advantage. Very few people seeking neutral and transparent financial advice are willing to listen to a machine on the phone or follow a chat window on screen. An advisor who credibly offers a transparent, needs-oriented, human consultation will outperform AI-based advisory by a wide margin — especially with the help of interactive tools.
AI's Real Strengths: Sales Assistance
Where, then, does AI genuinely earn its place in financial advisory? AI can intelligently manage the surrounding processes — more precisely, in the preparation and follow-up of advisory appointments. In other words: AI takes on the role of sales assistant. (This will indeed eliminate some jobs in the future — but not those of the advisors themselves.)
For example: within seconds, all information from an audio-recorded initial contact can be transferred into the CRM — not just in a brokerage or intermediary office, but also directly at the product provider or tied sales organisation. Without anyone having to lift a finger to create calendar entries, documentation or fill in forms. ChatGPT can handle this, and in doing so it creates space for high-quality financial advice.
In summary: With AI tools such as ChatGPT, intermediaries and brokers can refocus on their core business: personal, irreplaceable advisory in direct contact with their clients. And they save a great deal of time and money along the way.