Two in three financial planners already use artificial intelligence, or are planning to do so in the next 12 months, new research has found.
A global study from the Financial Planning Standards Board, which surveyed over 6,200 financial planners across 24 territories, found that AI uptake has been strong.
Respondents were generally optimistic about the potential of AI to enhance the quality of financial planning advice, reduce costs and broaden access to financial planning for underserved populations.
Over three quarters (78%) of financial planners believe AI will help them better serve clients, while 60% believe it will enhance the quality of financial advice.
Of the two thirds of firms that either have or are planning to leverage AI in the next year, adoption rates are highest among small or very large firms. Half (50%) of financial planners have a positive outlook on AI, far outweighing the 8% who view it negatively.
There was also general agreement among financial planners (59%) that AI will help reduce the cost of financial planning services.
When asked how they use AI, the most popular answer was in client communications (41%). A third (33%) cited client data collection and one in three (30%) use it for client risk profiling.
A similar number are also using it to improve operational efficiency, such as marketing and promotions (35%) and client onboarding (34%).
Dante De Gori, CEO of Financial Planning Standards Board, said: “With financial planners recognising AI’s potential to lower costs and believing it will expand access to underserved communities, AI is paving the way for more affordable financial advice.
“This technology is not just reshaping the practice of financial planning but may also open doors for those who have historically lacked access to critical financial services.”
Yet, despite the positive outlook, the research revealed that financial planners recognise the risks associated with AI. Nearly half (47%) listed data privacy and cybersecurity concerns, while 42% were concerned about the accuracy and reliability of AI outputs.
To better adapt to AI, 49% of financial planners expressed a need for professional development to improve their data analysis and interpretation skills. Over a third (36%) believe both the public and the financial planning profession will greatly benefit from general education and training on AI.
De Gori added: “We are witnessing a pivotal moment in the financial planning profession as financial planners embrace AI to work smarter, allowing more time to engage in deeper human connection with clients. This survey provides a valuable snapshot of how financial planning professionals worldwide are leveraging AI to stay competitive, improve work efficiency and better serve clients.”
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