A recent survey revealed that around 60% of financial advisors are using or interested in testing out generative artificial intelligence (AI), particularly ChatGPT. SmartAsset, a SmartAdvisor matching platform, conducted the survey and collected data from 100 financial advisors between March 29, 2023, and April 12, 2023. The advisors who use ChatGPT said they use it primarily for tasks such as writing educational content, following up on leads with prospects, and routine communications and scheduling. However, some financial professionals expressed discomfort with the technology, and compliance or privacy concerns were other reasons they are not yet using AI or ChatGPT.
Many financial advisors are looking to incorporate AI technology such as ChatGPT into their practices. This artificial intelligence chatbot offers a unique ability to interface with clients and prospects while analyzing data and drafting memos. By doing so, it can streamline marketing, outreach, and data-crunching tasks, while yielding an improved customer experience, lowering overhead costs, and providing greater access to more options for investors.
Arthur Weissman, co-founder of Industry FinTech, believes that AI will have the greatest impact on customers when it comes to financial advisory services. However, as with any new technology, advisors need to be aware of the compliance-specific limitations of the technology and understand its intricacies before adopting it properly.
The survey revealed that 27% of respondents are using or testing ChatGPT to a certain extent, while 30% of respondents haven’t used it yet but are interested in trying it out. Nevertheless, 43% of respondents stated that they do not plan to use it. Out of those that answered why, 38% are not comfortable with the technology, 26% are prohibited from using AI by compliance or management, and 23% have concerns regarding privacy.
In conclusion, while AI may create new opportunities for financial advisors to serve clients and expand their client base, it is essential to understand its technological and compliance-specific limitations. Therefore, advisors who plan to adopt AI should be disciplined in comprehending the proper use of the technology.
