AI for financial planning: An adviser’s friend or foe?

Financial advisers are no strangers to pressure. Between navigating an ever-evolving regulatory landscape, ensuring compliance and staying sharp on fast-moving financial markets, the job can feel like a juggling act. And more recently, artificial intelligence (AI) has thrown yet another wrench in the works.

Some hail AI as a game changer, others see it as a disruptor with the potential to reshape the industry, and not always for the better. So which is it?

In my view, AI has the potential to elevate financial advisers by automating repetitive tasks and simplifying complex workflows. This frees up time for advisers to focus on what truly matters: building trust with clients, engaging in meaningful conversations and growing their practices.

This article explores how AI can be an ally. From improving lead generation to streamlining operations and staying competitive with robo-advisers, we’ll look at the tools and trends transforming financial planning.

AI for lead generation

Finding new clients is one of the most persistent challenges for financial planners. AI can revolutionise lead generation, making it smarter, more targeted and more efficient.

Examples of AI and lead generation:

• Salesforce Einstein: This AI-powered tool enhances traditional CRM capabilities by analysing data patterns, predicting which leads are most likely to convert, and recommending next steps. Planners can focus their efforts on quality prospects instead of wasting time on cold leads.
• AI-assisted lead capture chatbots: Tools like Drift and LivePerson engage website visitors 24/7, answer queries on par with a human sales or customer agent, and collect contact information. These chatbots ensure potential clients receive immediate attention, even outside business hours.
• Content personalisation engines: AI tools like Optimizely and Dynamic Yield analyse visitor behaviour to deliver tailored content. For instance, visitors exploring retirement resources on your website might see an offer for a free consultation or additional resources on superannuation strategies.

Developments from the US

US firms unsurprisingly are leading the way in AI adoption, demonstrating how technology can reshape financial advice.

Morgan Stanley Wealth Management, for example, uses AI-powered segmentation to identify ideal prospects and deliver personalised outreach. This allows advisers to tailor their efforts to client needs and interests¹.

The firm also uses an OpenAI-powered tool to streamline post-meeting workflows. With client consent, the tool automatically generates detailed meeting notes, allowing advisers to quickly review, refine and share summaries, reducing the need and risks associated with manual data entry into dealer group software.

This shift toward AI is significant. A recent survey found that 79% of young high-net-worth individuals in the US would like their adviser to use AI tools in the advisory process².

Meanwhile, AI adoption in Australian advice is still in its early stages. A 2023 survey found that only 11% of Australian financial planning firms have implemented AI for limited use, while 34% are exploring its potential. Nearly half of all firms show interest in adopting AI in the future³.

Beyond leads – AI tools to streamline your practice

AI isn’t just about finding new clients. It’s also a powerful tool for reducing operational inefficiencies, improving compliance and simplifying day-to-day tasks.

• Xplan’s AI: This platform makes financial modelling and portfolio construction faster and more accurate, helping planners spend less time on calculations and more time crafting personalised strategies.
• SAMI: Compliance is a major challenge for financial planners, but SAMI automates processes like audit trails and regulatory reporting, reducing errors and simplifying regulatory obligations.
• SMSFAI: Specifically designed for SMSF-focused advisers, this tool uses AI to create customised advice and reports in a fraction of the time it would normally take.
• SimpleFund360: Managing SMSFs can be labour-intensive, but SimpleFund360 automates fund reporting, tax preparation and compliance. This frees up time for planners to focus on their clients and growing their practice.

By leveraging these tools, planners can operate with the efficiency of a larger team while keeping costs manageable and improving client satisfaction.

How to start integrating AI today

Adopting AI doesn’t require a complete overhaul of your practice. By starting small and focusing on key areas – like lead generation, compliance and administration – planners can achieve meaningful improvements with minimal disruption.

Here’s how to get started:

• Focus on lead generation: Begin with tools like Salesforce Einstein or Drift to optimise client outreach and nurture potential leads effectively.
• Streamline operations: Integrate AI tools like SMSFAI or SimpleFund360 to automate reporting and reduce admin hours, freeing up time for strategic tasks.
• Upskill your team: Train your team to use these tools effectively. AI is only as powerful as the people who understand how to apply it.
• Monitor and refine: Regularly assess the ROI of the tools you implement. Track metrics like time saved, lead conversions or reduced compliance errors, and refine your approach as needed.

AI is here to stay – the key is to make it work for your practice in ways that add real value without disrupting your core focus.

Financial planners in an AI world

AI is rapidly becoming a fixture across the financial services industry, with automated platforms and robo-advisers gaining momentum. And while it’s easy to fall into the trap of fearing that AI will replace jobs and disrupt sectors, in my view the human element of advice will become even more valuable.

While AI excels at processing data and handling repetitive tasks, it lacks the empathy, judgment and understanding of emotional complexities that clients often need.

Financial planning involves deeply personal decisions, including retirement, wealth transfer or navigating family crises, which benefit from a human touch, given the amount of wealth involved.

Embracing AI to enhance, not replace, financial planning

AI isn’t just the next big trend. It’s a transformative tool that can solve real challenges for financial planners, from finding new clients to managing operational costs and navigating compliance.

The key to success lies in staying open to new possibilities, identifying a practice’s core pain points, and selecting the right AI tools to solve them. This allows advisers to focus on what they do best: spending more time with their clients.

References

1. Wealth Management Announces Latest Game-Changing Addition to Suite of GenAI Tools, June 2024, Morgan Stanley Wealth Management

2. Survey: Wealthy Gen Zs, Millennials Use AI Regularly – And Expect Financial Advisors To Do The Same, September 2024, BusinessWire/Boosted.ai

3. Humans and machines: How AI can supercharge advice firms, 2023, NetWealth 2023 AdviceTech Report