Artificial Intelligence mortgage tools are unable to "truly understand the needs of clients", South Coast Mortgage Services director, Gareth Davies, has stated.
While Davies acknowledged that there is “certainly” a place for AI and tech within the industry, he doubted whether it would be able to fully replace brokers.
He argued that robots will never be able to read the emotion and truly understand the needs of a client who is struggling to make ends meet.
“The value of a broker is much more than just rate hunting,” he added
These comments come after Koodoo, a digital mortgage platform, announced it had created a new artificial intelligence technology which has passed the UK’s mortgage advice qualification (CeMAP).
When brokers were asked if their jobs were under threat as a result of this announcement, Cyborg Finance mortgage adviser, Mark Hosker, stated that the CeMAP qualification “does not mean you are a competent mortgage adviser” and is instead “the start of the journey”.
This sentiment was echoed by other brokers, such as Shaw Financial Services owner and mortgage expert, Lewis Shaw, who said: “Passing CeMAP is not really an achievement for an AI language model.”
Shaw said brokers will not be replaced by such technology for three main reasons.
These included AI’s inability to talk to an underwriter, a misunderstanding of the role of brokers, and the inability for AI to “read between the lines or deal with the messy business of real life”.
Shaw added: “When AI can 'look' at someone and see the confusion on their face, or distinguish between what's being asked by a client and what they are actually trying to ask, then we might be in trouble.”
Advantage Financial Solutions LTD advising director, Steven Morris, shared this idea, stating that brokers require a certain level of “emotional intelligence”.
Additionally, R3 Mortgages founder and director, Riz Malik, stated: “While I applaud the language model’s capabilities, it’s like comparing apples to oranges.”
He explained that, while AI is “certainly” set to transform various sectors, he does not believe there is any one-size-fits all answer to the industry’s issues.
“AI could be a game-changer for brokers in back-office functions like research compliance. However, if AI directs borrowers to lenders without the right guidance, that raises concerns,” he added.
Thanks to the Newspage community for sharing their thoughts with FTAdviser.
tom.dunstan@ft.com
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