How advisers can embrace AI tools without sacrificing human connection

Can artificial intelligence make an impact in industries built on human connection? For client-facing roles like benefit and financial advisers, the thought of embracing AI may elicit some skepticism. But with the right approach, these tools can make a valuable impact. 

Ninety-eight percent of advisers believe that AI is transforming how advice is created for, delivered to, and consumed by clients, according to a 2023 study released by IT services and consulting company Accenture, which surveyed 500 licensed financial advisers in the United States and Canada. Eighty-three percent even believe AI will have a direct, measurable and consistent impact on the client-adviser relationship by early 2024.

"AI has definitely piqued a lot of clients' interest," says Lauren Hein, head of adviser relations at Robo Global, an advisory specializing in disruptive technologies. "Our audience is asking, 'Are we going to see job losses? How do I actually invest in these companies? How disruptive is this? Is this a trend like the crypto rise and fall over the last couple of years?'"

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Advisers themselves are just as curious. In fact, 87% of financial advisers would embrace more AI tools and take the time to learn new processes if there is a clear benefit to them, Accenture found. Ninety-seven percent believe that AI could be the key to helping them grow their book of business organically by more than 20%, and 51% would consider leaving their current firm for one with better technology tools.

Still, Hein stresses, the embrace of AI is taking hold at a slower pace among the adviser community as compared to other industries. 

"There might be a lack of understanding of what artificial intelligence really is, and maybe a little bit of skepticism from advisers that the information that AI is cranking out will be actually correct," she says. "But the sentiment is definitely, 'I'm fielding questions about AI from everybody, so let me try to figure out what this is.'"

Even robo-advisers — digital platforms that use a client's data to offer advice and automatically invest in certain funds for them — do not use a whole lot of AI, despite their name, Hein says. For the most part, they simply automate portfolio strategies rather than embracing machine learning. But that, in her opinion, is a missed opportunity.

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"The adviser community can work so much more efficiently when it agrees that we're going to accept AI and start utilizing it where we can," Hein says. "Then they can actually spend their time growing their businesses and being in front of current clients and walking alongside them, as well as spending more time with prospective new clients." 

To counter any reluctance and help advisers get comfortable with these new tools, Hein suggests taking small steps now to prepare for widespread adoption. She suggests embracing app-based customer relationship management (CRM) programs rather than relying solely on sales assistants or junior advisers; when those programs eventually roll out AI-enhanced capabilities, advisers will be able to hit the ground running. 

For example, Robo Global used software company HubSpot to create an app for their CRM. As a result, they've adopted several of HubSpot's technological advancements and capabilities into their platform. As HubSpot delves into AI and potentially rolls out their own large language model — like a ChatGPT — Hein's team will already be comfortable with the program and platform. 

She also stresses that AI-powered chatbots are unlikely to impact any client-facing work or communications. That human connection and relationship will remain, and instead, AI tools can streamline the more tedious and time consuming administrative tasks for advisers. Eighty percent of advisers, for example, report that AI's greatest benefit is translating clients' data digitally rather than manual entry. 

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"Start thinking about this technology as a first resource for things like drafting emails or making a blog post," Hein says. "This business is highly regulated, so you'll probably have to submit it through your compliance department to make sure that it's appropriate and approved for retail distribution anyway. So let's get super efficient on the very first steps instead of doing everything from scratch." 

Continuing education in this space will prove vital as innovations keep coming. Recently, Bloomberg announced that it's launching its own chatbot, BloombergGPT machine learning model, which will apply the same type of AI techniques that GPT uses, but to financial datasets. In response, Robo Global launched an investor's how-to guide on AI on their website. The goal is to educate as many advisers in the industry as possible so that the advisory space doesn't get left behind in the AI movement. 

"We're all forced to adopt technologies," Hein says. "In the end, it'll make us all more relevant to work with a whole lot of other clients in different industries or specialize in working with a certain client type or demographic or age group."