Around 41 per cent of independent financial advisers (IFAs) haven’t yet incorporated AI tools into their services, but are open to doing so within the next year, according to research from Opinium.
The research, which was carried out using Opinium’s IFA omnibus, also found that only 4 per cent of IFAs have already implemented AI tools. In comparison, 35 per cent are reluctant to consider their use.
The survey reveals that 39 per cent of IFAs believe AI can enhance efficiency, with 46 per cent seeing potential in automating tasks and simplifying admin and 37 per cent saying they would be most helpful to draft materials and other written content.
The top five uses of AI technologies, according to three out of ten respondents (29 per cent) are financial data analysis, managing company operations (20 per cent), adhering to industry laws (21 per cent), offering advice and counsel to clients on financial decisions (12 per cent), and risk management (11 per cent).
However, 32 per cent of respondents are unclear about how AI tools will affect efficiency, while 9 per cent think they would decrease efficiency.
According to consumer views, 27 per cent of consumers would utilise AI tools for financial guidance in the future, while 37 per cent would never use them now. Reluctance to divulge personal information at 36 per cent, distrust at 34 per cent, and a preference for human guidance at 45 per cent are the top causes of refusal. There is also a split in the opinions of consumers on advice with 35 per cent saying they would occasionally accept AI advice, 38 per cent rarely or never trust it, and 27 per cent are undecided.
Meanwhile, 85 per cent of IFAs express concerns about AI in financial advice with 61 per cent wanting stricter regulations.
Opinium head of financial services research Alexa Nightingale says: “The use of AI tools such as ChatGPT are becoming more prominent across many industries, and it seems that the financial advice industry is slowly coming to terms with this too.
“Although there are concerns around its implications, it’s widely accepted that these tools have the potential to revolutionise and simplify many steps in the financial advice process. It will be interesting to see if adviser confidence and trust around this technology starts to improve if and when it becomes more regulated, especially given the majority think this should be stricter.
“As consumer views are also divided on AI and financial advice, advisers that do adopt these technologies will need to help educate and reassure their clients about how and why they’re using it.”
