There’s been much talk of late about AI (artificial intelligence) and its potentially huge impact on financial services and Financial Planning.
We’ve seen conflicting views, which we’ve reported on Financial Planning Today this week in an interesting contrast.
In one corner, a positive story about how AI could narrow the advice gap by opening up cheaper forms of guidance to all.
In the other corner, a warning that the spread of AI is likely to lead to more financial crime.
So is AI a hero or potential villain? It’s a question some are asking.
The answer, realistically, is neither. AI is just a technology that could bring huge benefits to financial services, but may replace some jobs. It could also enable financial scammers and fraudsters to find new ways to cheat us out of our savings.
A sensible conversation must recognise that while AI is a powerful tool, it is still in its infancy and will need tough regulation. The FCA is well placed to do this and is already on the case, we are told.
Certainly Financial Planning is well up with the curve. Many Financial Planners we’ve spoken to in recent months have already adopted AI in their business processes and I’m impressed with their rapid grasp of this new technology and how it is adding to Financial Planning efficiency, not replacing the human touch.
It does need careful handling, however. I think many planners understand this and are wisely proceeding cautiously but there will be other parties who are more reckless and they need to be reined in.
The scammers, too, must be watched if AI is not to lead to a rash of new scams and financial scandals.
Regardless of all this, AI is not going to go away and it will be a valuable technology for the financial services sector.
It will, however, never replace human advice and relationships. It can add to them but not take away the fundamental reason why clients choose to use Financial Planners - to have a well qualified, friendly, interested professional take on some of the burden of handling their financial affairs.
Kevin O’Donnell is editor of Financial Planning Today and a journalist with 40 years of experience in finance, business and mainstream news. This topical comment on the Financial Planning news appears most weeks, usually on Fridays but occasionally other days. Email: