This suggests the potential for AI not only to pull together technical information and produce persuasive content, but to have ideas and to solve problems that are much more complex, arguably, than financial advice.
On the other side of the argument: why do people use financial advisers? Is it because they need the technically ‘right’ answer, which increasingly for many mainstream situations they can find online and have been able to for a long time?
Or is it because self-reflection is challenging, knowing what you really want and need is hard, and acting on that knowledge is even harder? And because most people who grow, in most walks of life, use a human coach in one form or another – whether that’s a teacher, a mentor, a therapist, a sports trainer or a business coach.
With the era of product sales behind us, the role of the adviser today is to be that coach: the person who helps you understand yourself and your needs and supports you to take the necessary action.
As the robo-advisers have demonstrated, technically correct answers are not the issue. Rather, it is about getting people to take action because you are their trusted coach and you hold them to account.
What would I be doing about AI if I ran an advice firm? I would be looking at how I could use it to take some of the slack: to do some of the tasks of the business more quickly and cheaply, with a corresponding boost to productivity.
And then I would be laser-focused on client relationships, on building coaching capabilities and deeper empathy in my team. Because in an AI world, what will set firms apart is being human.
Ben Goss is chief executive of Dynamic Planner
