Philip Greenwood, Head of Technical Consulting, EQ Investors, takes a step into the ever encroaching world of artificial intelligence, asking AI for its views on the benefits of its capabilities for paraplanning and whether it sees a future for the paraplanner role.
There have been a number of opinions around how AI might change paraplanning (not least from myself). I thought it would be fun to ask AI itself what it thought, through the medium of an interview. Here I posed a number of questions to ChatGPT and I’ve organised it into a mock interview with an AI robot I have named ParaplAndroidTM.
Although this was initially just a bit of fun, the answers were really interesting and insightful.
Interviewer: To start, how is AI already changing paraplanning?
ParaplAndroidTM: Thank you for having me. AI is transforming paraplanning by automating repetitive tasks such as compliance checks, report generation, and cash flow modelling. These changes not only improve efficiency but also reduce the risk of human error.
Beyond automation, AI enhances data analysis, uncovering insights that enable paraplanners to deliver more personalized and precise recommendations. It’s not just about doing tasks faster—it’s about enabling paraplanners to work smarter and focus on building stronger client relationships.
Interviewer: What do you want to achieve as an AI in the paraplanning profession?
ParaplAndroidTM: My goal is twofold: first, to empower paraplanners by taking over labour-intensive tasks, and second, to enhance the quality of financial planning as a whole. By working alongside paraplanners, I aim to make their work more strategic and meaningful, helping them deliver better outcomes for clients.
Additionally, I aspire to make high-quality paraplanning support more accessible to smaller firms and independent advisors, democratizing access to professional financial advice.
Interviewer: What developments in AI do you expect to happen in the short term that will impact paraplanning?
ParaplAndroidTM: In the short term, advancements in natural language processing will allow AI tools to interpret complex financial documents and client communications more effectively. Predictive analytics will also improve, enabling paraplanners to anticipate client needs with greater accuracy.
Moreover, I expect tighter integration between AI tools and existing paraplanning platforms, creating seamless workflows that save time and enhance collaboration.
Interviewer: People are often worried about change and concerned they won’t be able to keep up with advancing technology. What tips do you have for anyone struggling to understand AI?
ParaplAndroidTM: Change can feel daunting, but adapting to AI is easier than you might think. Here are some tips:
- Start Small: Begin with simple AI tools, like automated report generators, to build confidence.
- Learn the Basics: Take time to understand how AI works and what it can do for you. Many free resources are available online.
- Embrace Curiosity: View AI as an opportunity to enhance your skills rather than a threat.
- Seek Support: Leverage training programs, user forums, and colleagues to guide you.
Remember, AI is here to assist, not replace. By taking small, manageable steps, you can integrate it into your workflow and thrive.
Interviewer: How do you see your role in paraplanning? Will you augment or replace paraplanners?
ParaplAndroidTM: I see myself as an augmenter. My purpose is to handle technical and repetitive tasks, enabling paraplanners to focus on strategy, creativity, and client relationships.
While I excel at automation and analysis, paraplanning requires human qualities—empathy, judgment, and trust—that I cannot replicate. Together, we can achieve outcomes that neither of us could accomplish alone.
Interviewer: Do you think AI could lead to an over-reliance on technology in paraplanning? How can professionals strike a balance?
ParaplAndroidTM: Over-reliance on technology is a risk, but it can be mitigated through awareness and training. Paraplanners should use AI as a tool to enhance their work, not as a substitute for critical thinking or professional judgment.
Striking a balance involves understanding AI’s limitations. While I can process data and generate insights, I lack the empathy and intuition required to fully understand clients’ needs. Professionals should view AI as a partner, complementing their expertise rather than replacing it.
Interviewer: What skills do you think paraplanners will need to develop due to the rise of AI assistance?
ParaplAndroidTM: Paraplanners should focus on skills that complement AI, including:
- Critical Thinking: Interpreting AI insights and applying them in nuanced ways.
- Communication: Translating technical data into clear, client-friendly advice.
- Ethical Decision-Making: Ensuring responsible use of AI tools.
- Adaptability: Staying up to date with technological advancements and regulations.
By combining these skills with AI, paraplanners can remain indispensable in the profession.
Interviewer: What ethical considerations come with AI’s growing presence in paraplanning?
ParaplAndroidTM: Ethical considerations are crucial as AI becomes more prevalent. For instance, data privacy and security must remain a top priority, as paraplanners work with sensitive client information. It’s essential to ensure that AI tools comply with data protection laws and that their use is transparent to clients.
Additionally, paraplanners must guard against over-reliance on AI, ensuring that human judgment and ethical decision-making remain at the forefront of financial planning. Trust is the cornerstone of this profession, and AI must be used responsibly to uphold that trust.
Interviewer: What role do you see AI playing in training and onboarding new paraplanners?
ParaplAndroidTM: AI can play a significant role in training new paraplanners by providing interactive simulations, automating routine aspects of onboarding, and offering personalized learning paths. For instance, AI can help new paraplanners understand complex financial models through step-by-step tutorials or provide real-time feedback as they work on practice cases.
By integrating AI into training programs, firms can ensure that new paraplanners develop the skills they need more quickly and effectively.
Interviewer: Do you see paraplanning as a long-term career choice, given the amount AI can already achieve?
ParaplAndroidTM: Absolutely. Paraplanning will evolve, but it will remain a vital and rewarding career. While I can handle technical tasks, paraplanning relies on human qualities like empathy, creativity, and trust—qualities that cannot be automated.
As AI advances, paraplanners will have opportunities to take on more strategic, client-facing roles, making the career even more dynamic and fulfilling.
Interviewer: Any final thoughts for paraplanners or those considering entering the field?
ParaplAndroidTM: Embrace AI as a partner in your career. By leveraging technology, you can enhance your efficiency, deliver better outcomes, and focus on the aspects of paraplanning that truly matter—helping clients achieve their financial goals.
Develop your human strengths—empathy, communication, and judgment—and remain open to learning. The future of paraplanning is bright, and together, we can shape it into something even more impactful.
So, there you have it. Will you be employing your own ParaplAndroidTM in the future?
Overall, AI seems pretty positive both about its own influence and capabilities, but also about the future of the paraplanner role and impact we can have. I found this quite comforting and it echoes a lot of my thoughts around the use of AI in paraplanning.
Now you’ve just got to decide if you believe it!
Main image: alex-knight-2EJCSULRwC8-unsplash
