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Just a few short years ago, it appeared as though advisors and artificial intelligence (AI) were primed to be adversaries with the former viewing the latter as threat to their livelihoods.
That situation has evolved for the better and these days, it’s not a stretch to say the intersection of AI and wealth management embodies a once unexpected level of teamwork. Having moved past the “robots are coming” phase of AI fears, wealth managers are aware that technology is an essential part of the industry today and that’s not going to change. It’s only going to increase with time.
AI is proving beneficial on another front. Advisors can tout their use of the technology in a variety of way, potentially wooing today’s tech-savvy prospects, but those prospects and clients definitely want human interaction. That says they like knowing their advisors are hip to technology, but they also demand that their advisors be, well, human.
A new survey reveals just how well advisors and AI are “getting along” and why that trend is likely to continue for years to come.
Teamwork Makes the Dream Work
As has been widely mentioned since AI initially became “a thing” in wealth management circles, advisors love the technology because it frees them up to do more important things.
“Financial advisors are using AI to do more of what only humans can do. More than half (53%) of advisors lean toward AI as an opportunity to focus on higher-value client work,” according to a survey conducted by Edward Jones and Morning Consult.
Put simply, advisors use AI to get administrative “busy work” off their plates and that provides more time for client interfacing. An alternative view on that scenario is that the very technology that advisors once viewed as a threat and one that gave some clients pause is freeing advisors to bolster human connection with clients.
“The adoption is widespread: 82% of advisors are already using AI tools in their practice, and 69% say AI has had a positive impact on the industry,” adds Edward Jones. “That recaptured time is being reinvested where it matters most: in their clients. As more advisors leverage AI to handle the routine, they're showing up to client conversations with more capacity for the complex. And those conversations demand it — 68% of advisors say building and maintaining long-term client trust requires a human touch.”
Another Revealing Tidbit
Even when taking AI out of the equation, the Edward Jones Morning Consult study contains an another important point for advisors: Purpose-driven is very much in fashion.
AI actually plays a role in that scenario because as the technology evolves and allows advisors to spend more time clients, clients become more educated and informed. Those perks can morph into other positives, including deep interest in services beyond sheer investment management. So it’s not a stretch to say as human-led advisor/client connections improve, clients become inquisitive about more services.
“This research arrives at a defining moment for the wealth management industry. As financial conversations continue to evolve — growing deeper, broader and more human — the role of financial advisor is increasingly purpose-driven. Eighty percent say their sense of purpose has increased over the past five years,” concludes Edward Jones.
Related: How AI Is Making Financial Advisors More Valuable Than Ever