Will the Financial Advisor Role Be Automated?
In recent years, the world has seen a colossal shift toward artificial intelligence (AI) and automation. These technological advances have affected workflows in the financial services industry, and many financial advisors share common concerns about what automation and AI mean for their job security.
As technology advances, the industry must adapt to meet its clients' increasing demands. According to a 2024 survey by Accenture, 80% of financial advisors plan on automating time-consuming tasks with AI. Automation helps financial advisors meet clients’ needs more efficiently. Advisors can elevate their client experience and streamline workflows by automating routine tasks with tools like Asset-Map.
In this article, we will answer the question, “Will AI replace financial advisors?” and explain how to prepare for future technological advancements. Read on to learn how to balance automation and the human element in financial planning.
The Human Element in Financial Planning
With the rise of robo-advisors, many ask, “Will financial advisors be automated?” While artificial intelligence is increasingly adept in many areas, it lacks the human element of traditional financial advisors.
To keep things brief, no, financial advisors will not be fully automated. However, expect to see human financial advisors using automation to their advantage to elevate their financial practice. Automation and human advisors go hand-in-hand. Robo-advisors utilize AI algorithms to manage investment portfolios and asset allocation but aren’t poised to replace financial advisors completely.
Human empathy and understanding are irreplaceable in comprehensive financial planning. AI will never reach a human's emotional intelligence level. This is important because personal relationships and building trust with clients are crucial in financial planning. Financial professionals must build rapport with their clients and demonstrate dedication to helping them achieve their goals.
Client-advisor interactions often require a human touch. Take life event planning, for instance. A financial advisor works with clients to help them handle complex emotions related to personal finance. The advisor is a financial guide and a human supporter when making complex financial decisions.
How Automation Complements Human Advisors
Human advisors will find that automation is complementary to their financial advisory practices. Like in other fields, automating tedious or repetitive tasks saves advisors time and effort. Financial advisors can use AI and automation to streamline their workflows and spend more time offering personalized client interactions.
Automating tasks gives financial advisors more time to focus on strategic planning, data analysis, and complex problem-solving. Financial planners can pour more time and intention into their clients, fostering deeper client relationships. Automation can also improve record accuracy, reduce administrative expenses, and support compliance.
Specific tasks that financial planners should consider automating include:
Data collection/entry. Data collection and entry is a time-consuming process that is necessary for financial planning. Automate this process to get the information you need from clients without spending hours.
Updating client records. Financial advisors can find it challenging to keep client records up to date. However, they can remain organized and reduce record errors by automating occasional updates.
Risk assessments. Consider investing in risk assessment software to identify and manage client risk. Automating this process ensures higher accuracy and efficiency in the long term. AI algorithms consider risk tolerance when working with beginner investors. Human intervention is recommended for more complex investment decisions.
Invoicing. Financial advisors can automate client invoicing to reduce administration costs. Financial advisors should schedule and automatically send invoices for their financial planning services.
Signature collection. Fillable e-forms help automate the process of collecting signatures and significantly reduce the time it takes. Advisors can save time and resources by integrating digital forms to collect critical client information.
Additionally, Asset-Map offers a Discovery™ feature to make collecting client (or prospect) data easy. This data can then be transferred into a visual Asset-Map Report™ in minutes, saving advisors hours of manual work. This report helps clients feel confident and informed during the financial decision-making process.
Collaborative Opportunities Between Advisors and Automation
Advisors can use AI and automation to enhance their comprehensive financial planning services in many ways. Collaborative technologies and tools like Asset-Map facilitate better client engagement and support informed decision-making. Financial advisors should look for opportunities to use automation technology to modernize their workflows wherever possible.
Some areas where financial advisors can combine AI and automation technologies with their human expertise include:
Meeting transcription or notetaking. Automated notetakers can be used during client meetings to take detailed notes for future reference. Taking notes helps financial advisors formulate investment strategies and provide personalized advice.
Sending follow-ups. After an initial consultation, automatically send well-timed follow-up emails to help convert new clients. This is a great way to nurture leads without much manual effort.
Scheduling reminders. Automated scheduling reminders help prevent no-shows and inform clients about upcoming dates, such as tax deadlines. Clients appreciate simple reminders to help them stay organized.
Customer support. If you get a lot of questions via your website or social media profiles, consider implementing an AI chatbot. AI chatbots can break down simple financial planning concepts, answer frequently asked questions, and collect feedback from website visitors.
Asset-Map aids financial planning professionals in engaging clients in productive conversations. With Asset-Map, financial advisors visualize each client’s financial situation, enabling clients to view their entire financial picture clearly. Advanced visualizations empower clients to better understand your financial plans and their impact.
Automation can also enhance the delivery of information and insights in client meetings. For example, presentations can be automated to ensure the most up-to-date data points are presented in a visually appealing format.
Financial planners can even send clients automated meeting summaries with bullet points on the key takeaways. These summaries instill confidence in clients and keep the conversation top of mind. They share an overview of the discussion, goals, and next steps.
Preparing for a Technologically Advanced Future
Technology advances year after year, bringing financial advisors new and innovative tools. Financial advisors should prepare for bigger and better technologies impacting their practice. With the fast pace of advancements, technology will inevitably change the financial services industry in the future.
Advisors should focus on skill development in rising technological advancements. Staying current with the latest technology helps financial advisors remain competitive in a crowded market. Set yourself ahead of the curve by adopting new technologies early and adjusting your financial practice accordingly.
Proactive learning is the key to integrating new technologies into your financial planning practice. Attend webinars or workshops that focus on innovation in the financial industry. Additionally, seek courses and certifications to expand your knowledge and become a client resource. Embrace AI and automation by finding the best ways to use them to support your service offerings.
Future-Proof Your Financial Advisory Practice with Asset-Map
AI technology and human insight complement each other in financial advising. AI cannot serve clients the same way as a human advisor, so it is a supplementary tool to enhance human financial advisory services.
Financial advisors should use AI and automation technologies to their advantage in the evolving landscape of the finance industry. Technological advancements and innovative financial planning tools like Asset-Map help streamline workflows and can instantly diagnose your clients’ financial health based on their household data. Financial planners can elevate their services with the help of automation and other technologies.
Asset-Map helps financial advisors build better client relationships through advanced visualizations. Schedule a demo to see Asset-Map’s capabilities and how it can level up your advisory practice.