Financial planners optimistic about AI's potential

The findings come from a Financial Standards Planning Board (FPSB) survey which Certified Financial Planners in New Zealand contributed to.

FSPB interviewed more than 6,200 CFP professionals globally gathering insight on the current state of AI adoption, its impacts, and the outlook for financial planning and those who work in the profession.

New Zealand advisers surveyed agreed broadly with the results – with 73% saying AI could help them better serve clients, 67% saying it could enhance quality of advice, 64% believed it could reduce the cost of advice and 71% that it could increase access to advice.

The research found that two in three financial planners report their firm is using AI or planning to in the next 12 months.

New Zealand is in sync with the rest of the world with two in three planners currently using AI or planning to in the next 12 months. Globally, AI is primarily being used by advisers for client communication (41%), client data collection (33%) and client risk profiling (30%), although several of the New Zealand CFPs’ are also using AI technology for portfolio management and rebalancing.

One third of those surveyed, find it is improving operational efficiency in marketing and promotions (35%), client onboarding (34%) and productivity and workflow optimisation (33%).

However, financial planners are also concerned with risks they perceive by using AI, which include data privacy and cybersecurity, accuracy and reliability of outputs, data quality issues and lack of human touch.

Many say that to further adapt their businesses in using AI they would like more education in data analysis and interpretation skills (49%) and best practice guidance (27%).  Ethical use of AI in financial planning was another area advisers wanted more guidance on.

FPSB Global Chief Executive Dante De Gori said: “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.”

He added that now is a pivotal time in the financial planning profession as financial planners embrace AI to work smarter, allowing more time to engage in deeper human connection with clients such as navigating conversations that will impact financial decision-making and providing clarity and support to stay on track to achieve their life goals.