The notion that AI might replace advisers is gaining traction, fueled by the advancements in machine learning and automation. Headlines suggest that sophisticated algorithms and robo-advisers are poised to take over tasks traditionally handled by IFAs and mortgage brokers. This has left many advisers wondering: is this a realistic concern?
While AI is undeniably transforming the advice industry, it is not here to take away your job. Instead, it is a tool that can enhance the work advisers do, making them more effective and efficient. In fact, the real threat comes not from AI itself, but from advisers who learn to use AI to elevate and accelerate their services, outpacing those who resist the change.
“The major winners will be financial services companies that embrace technology.” – Alexander Peh, PayPal and Braintree
AI excels at processing vast amounts of data quickly, identifying patterns, and generating insights that would take humans much longer to discern. This capability is a boon to advisers, allowing them to make more informed decisions and offer better, more personalised advice to their clients. AI can analyse market trends, predict risks, and suggest investment strategies. Just try extracting the key ratios after uploading multiple annual reports into Chat GPT. This tool gives advisers the data-driven foundation they need to provide strategic counsel.
You need advisers to build trust, understand client emotions, and set ethical boundaries. These are areas where human advisers excel, as no amount of computing can replicate empathy. Clients seek out advisers not just for cold, hard facts, but for the personal connection and nuanced understanding that only a human can provide.
The most successful advisers will be those who integrate AI into their workflow rather than viewing it as a threat. By using AI to handle data-heavy tasks, advisers can free up more time to focus on client relationships and high-level strategy. This synergy between AI and human expertise will create a new standard in the industry, where the advisers who embrace technology will lead the pack.
A prime example of this integration is the BAT AI file-checking tool. This tool is designed to assist, not replace, file-checking teams. Traditionally, file checks are on average against just ten per cent of an adviser files, post-sale. This is time-consuming, expensive and late. With Bat AI, teams can now rely on AI to quickly and accurately scan 100% of files at the adviser submission level, identifying potential issues that would take human teams significantly longer to uncover. Will 100% AI file-checking through AI become an industry standard? Of course, it will.
We do need to be cautious and plan carefully how we get there. File checks create work. Adviser remediation needs to be followed through, and rules enforcement is often harder than making the rules up. Prepare yourself for the business prevention accusations as advisers struggle to improve performance metrics in the dash to get business submitted.
The role of file-checkers, much like advisers, remains crucial. But suppose you allow AI to handle the bulk of the file-checking process. In that case, human teams can concentrate on analysing the most critical files, making final judgements, and management follow through. Combining AI and human expertise leads to greater efficiency and better outcomes.
So, rather than fearing AI, advisers should see it as an ally—a tool that can take over repetitive, data-driven tasks and empower them to do what they do best: connect with clients, provide strategic advice, and make informed decisions. The future isn’t about AI taking over, but about how advisers can leverage AI to become even more indispensable in their roles.
Robert Jones – Head of Business Development – BAT