The integration of chatbots and artificial intelligence (AI) into financial advice could mean that firms only need one human adviser in the future, according to AdviceBridge. Bruce Ely-Johnson, the company’s Chief Commercial Officer, has stated that about 80% of advisers could potentially become redundant in the near future. If a system can replace [advisers], then would each firm require as many advisers as it currently has, he questioned. Ely-Johnson suggests that with roughly 5,230 advice practices, each firm would only require one adviser in theory.
Advisers would essentially be replaced by AI-powered chatbots known as ChatGPT or generative AI. However, this doesn’t mean that human advisers are no longer needed in the financial industry. Ely-Johnson stated that the use of chatbots would only replace certain aspects of the job that can be automated. This includes repetitive tasks such as research and analysis, freeing up human advisers to spend more time on customized advice for individual clients.
The integration of AI into the financial industry is not a new concept, as many financial firms have adopted various technologies to streamline their services. However, the use of chatbots and other forms of AI in the financial advice sector has been slower to catch on. This is partially because of the complexity of financial advice and the fear of replacing human expertise with automated systems.
Despite concerns, recent data has shown that investors are more accepting of digital advice platforms than once thought. According to research from Accenture, 68% of investors are open to the use of robo-advisers for future financial dealings. This number increases to 80% for investors aged 18 to 34.
In conclusion, the integration of chatbots and AI into the financial advice sector could bring significant changes to the industry. It does however pose questions for advisers who are concerned about keeping their jobs. The future of the industry will likely see a blend of human and automated advice services working together to provide investors with the best possible options.
