Advisers who can harness artificial intelligence (AI) will be able to dedicate more time to being ‘genuine’ financial planners, rather than being fund pickers or product sellers, according to EV managing director, Chet Velani.

Velani highlighted that the potential of AI in transforming financial advice was not limited to efficiency, and would allow a better, more personalised customer experience as trust in the technology improves.

With the first wave of AI innovation focused on efficiency, advisers are being freed up to spend more time understanding and supporting their clients, helping build trust in AI tools and create the foundation for more advanced applications.

The next step is through customer engagement, Velani noted, with chatbots and digital avatars helping guide clients 24 hours a day.

“Looking further ahead, the opportunity lies in combining AI with client data and behavioural insights to deliver customised journeys,” Velani continued.

“In addition, using agents for specialist tasks, such as plan optimisation, improves results and strengthens trust in AI.”

EV’s Hybrid and Digital Advice whitepaper concluded that consumers can be grouped into personality types that reflect different attitudes to money and financial planning, which helps advisers tailor engagement for their clients.

“Personalisation can deepen further as behavioural and financial data accumulates,” Velani said.

“Done right, AI becomes an intelligent layer that adapts to each individual rather than forcing everyone through the same funnel.”

Despite the improvement in technology, Velani emphasised the importance of advisers staying in control, as a visible human presence was not just regulatory good practice, it was “vital” for client trust.

“AI is, by nature, probabilistic which means it’s ‘probably right’,” he continued. “Advisers bring the judgment that ensures ‘probably’ becomes ‘definitely’.

“As the quality and reliability of AI outputs continue to improve, advisers will lean more confidently on these systems. And at that point, we’ll see a real step change, from faster processes to fundamentally better advice.

“The real breakthrough though, lies in reaching the mass market: those who would otherwise fall under guidance or targeted support.

“As AI continues to evolve, and it’s still early days, it has the potential to transform how firms with large customer bases, such as banks, providers and workplace schemes, support and engage with them.

“What was once impossible through technology alone can now become reality. That’s where AI will be the real gamechanger in financial advice.”

---