Almost two-thirds of financial planners expect artificial intelligence (AI) to improve the quality of advice, according to a just-released global survey.
The Financial Planning Standards Board (FPSB) poll of more than 6,200 advisers in 24 jurisdictions (including NZ) found 60 per cent believed AI would “enhance the quality of advice” while almost 80 per cent said the technology would help them better-service clients.
Furthermore, roughly three-in-five respondents agreed the now mainstream tech would both reduce the cost of and improve access to financial planning: about a third remained neutral on how AI would affect the price and accessibility of advice.
And the study – flagged in a teaser by FPSB chief, Dante De Gori, at the recent Financial Advice NZ (FANZ) national conference – shows almost 40 per cent are already using AI with a further quarter either in test-mode or planning to adopt the technology in the next 12 months.
However, the most popular current AI-intermediated services centre around client communications, data collection and risk-profiling rather than hands-on advice such as portfolio management or budgeting.
About a third of respondents also use AI for business purposes including marketing, client on-boarding and workflow optimisation, the study shows.
Only 7 per cent of those surveyed held a negative view of the technology while half were highly or somewhat upbeat: 41 per cent remained on the fence.
“Financial planners reported their greatest concerns with AI are data privacy and cybersecurity (47%), as well as accuracy and reliability of AI outputs (42%),” the report says.
Nonetheless, just over 60 per cent of financial planners tapped by the FPSB said “AI will create new opportunities”.
FANZ chief executive, Nick Hakes, said the research provided valuable insight for the local advisory profession into fast-developing global best practices.
And the AI study was particularly timely, Hakes said, with advisers everywhere grappling with the threats and opportunities posed by the technology.
The FPSB is a standard-setting body for the profession and owner of the Certified Financial Planning (CFP) educational marque outside the US.
More than 230,000 advisers across 28 territories have earned the CFP badge including more than 200 in NZ.