HELPING YOU TO GIVE MORE ADVICE
The key , as with all systems generally , is to get them all integrated and working together , if you are needing to manually re-enter data or copy from spreadsheets the full benefit of AI will not be able to be realised . Firms should look to ensure that they have AI-ready systems in place – by AI ready we mean back-office systems integrating to digital platforms and cashflow planning solutions . Data must be held in a place where it is accessible for automation . Those firms that are able to do this will be able to realise their goal of servicing more households and to offer a broader service .
FIRMS SHOULD LOOK TO ENSURE THAT THEY HAVE AI- READY SYSTEMS IN PLACE
As AI brings efficiencies , does this ultimately mean tech is replacing humans ?
Fundamentally no , what AI will do is enable scalability to human tasks . For example , scaling IFAs does not replace the IFA , it enables an improved outcome to the customer whilst a more efficient and lower cost to the IFA . Currently , in our industry , what many refer to as AI is really just machine learning and automation . The most popular AI tool is ChatGPT which uses language-based learning to fully automate tasks , for example , writing a letter . However , there is yet to be the ability to use ChatGPT from Intelligent Office or Defaqto Engage . A good measurement to look at in terms of the value AI can offer is in terms of the required amount of administration firms undertake . Typically , firms today will generally need a ratio of one administrator to three advisers . If AI is fully embraced , this could have the potential to become one to nine , meaning firms would have the capacity to service more clients and more households . Firms would need the right architecture and systems working together to make this a reality . It ’ s a phased approach and we are well positioned to support firms with this transition .
AI WILL NOT REPLACE ADVISERS , IT WILL ENABLE ADVISERS TO DO SO MUCH MORE , E . G . SEE MORE CLIENTS
So – firms should embrace AI ?
Ultimately , we will see AI support client servicing and efficiencies . We will see it transcribe tasks such as suitability letter and recommendations , it will update client records and trigger automated responses , ultimately reducing the burden of administration . To reiterate my earlier comments , AI will not replace advisers , it will enable advisers to do so much more , e . g . see more clients – which is something advisers tell us is a priority . It will also lead to good succession planning , administrators , paraplanners and office managers can become the next generation of advisers ( something we can help with through the new MyLearning Academy ). Ultimately , AI should help to increase access to advice , allowing advisers to service more consumers , including those with less wealth , who will become more efficient to service as costs are reduced and it should pave the way for the next generation of clients to access advice . Recently published statistics tell us that just 8.3 % of adults receive financial advice . However , demand for advice rises steadily year on year and we know that customers value human interaction in the advice process . Aligned with that , we have a regulator that stated in its recent Advice Guidance Boundary Review that it wishes existing advice services to thrive to meet this increasing demand . AI will support these objectives and serve to help close the advice gap .
ULTIMATELY , AI SHOULD HELP TO INCREASE ACCESS TO ADVICE , ALLOWING ADVISERS TO SERVICE MORE CONSUMERS
Any final comments ?
If firms want to be ready when all this comes to fruition , then now is the time to act . Upgrade systems and ensure systems are AI ready . AI will be more readily available in 2025 , so firms need to start to get ready now . For any questions to help select the right systems , reach out to me .
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