AI Could Make Financial Advice More Personal, Not Less

Artificial intelligence is helping financial advisors complete routine work, including note-taking, emails and administrative tasks. Clients, however, continue to expect direct communication. A Janus Henderson Investors survey published earlier this year found that 79% of investors would be upset if their advisor used AI without telling them.

Investors were more comfortable with AI used behind the scenes. Eighty-seven percent said they were not bothered by its use for educational content or administrative work. Acceptance fell when AI handled communication or advice. Forty percent said automated replies to emails or text messages would upset them, while 33% objected to AI-generated investment recommendations.

Tim Riddle, founder and chief executive of financial marketing firm Discover Blind Spots, distinguishes between effective automation and automation that ignores the client experience. AI-generated material can sound generic when it does not reflect an advisor’s knowledge and voice, according to Riddle.

Riddle’s firm uses AI mainly as a research assistant. It holds 30-minute sessions with advisors to record their brand voice before producing content. The process is intended to prevent communications for different clients from sounding alike.

Small details can affect how personal a message feels, Riddle noted. Advisors can send emails from their own addresses instead of generic marketing accounts, use a client’s first name and vary the length and format of messages for different groups.

Client preferences also changed during the COVID-19 pandemic. Advisors who had been encouraged to “use your voice” received positive responses to videos, according to Riddle. Clients told them they enjoyed seeing and hearing the advisor rather than receiving information alone.

Ewen Harris entered the financial services industry as an advisor in the United Kingdom about 30 years ago. He later sold his business and moved to the United States, where he works as an advisor coach.

Harris recalled that advisors once spoke with clients while printers produced reports. The delay created time for conversation and allowed advisors to demonstrate their interpersonal skills. Digital documents, text messages and AI tools have removed much of that waiting time.

Clients age 60 and older hold most of the wealth, Harris noted. Younger advisors may prefer text messages and digital tools, while older clients may choose a phone call or an in-person meeting. “They prefer a good old human touch,” Harris said.

Harris and Riddle recommend using AI behind the scenes, leaving advisors to handle conversations with clients. Empathy, trust and direct contact remain part of the relationship, Harris said. “I actually think AI beautifully will take us back three decades,” he said.