Will AI Replace Human Financial Advisors?
CFP® Certificants in the News
Surprisingly, about 3 in every 10 investors either trust or somewhat trust purely AI-generated financial advice, according to a recent article by CFP Board. However, financial advice from a human financial advisor still reigns for most investors—almost 9 of 10 trust their advisor’s advice. Interestingly, the trust level in AI-generated financial advice jumps up by 20% when a financial advisor verifies the advice. Investor trust is illustrated in the graph below.
According to the CFP Board article referenced above, “… investors demonstrate more confidence in advice from … generative AI …. after they’ve vetted that advice with a financial planner. Once financial planning advice from a generative AI tool has been verified by a financial planner, 52% of all investors are comfortable acting on that advice…”
In summary, it appears that while AI can provide supplemental resources, it is unlikely to replace financial advisors at this juncture. Morningstar seems to support the supplemental role as quoted below.
“AI will change the game, but it is unlikely to replace financial advisors. Rather, it will likely be an enabler, helping advisors increase productivity and deliver better advice for complex client scenarios.”
Disclaimer
The information presented herein is provided purely for educational purposes and to raise awareness of these issues; it is not meant to provide and should not be used to provide legal, identity theft protection, investment, income tax, risk management, retirement, estate, or financial planning advice of any kind. An experienced and credentialed expert should be consulted before making decisions relating to the topics covered herein. There are variations, alternatives, and exceptions to this material that could not be covered within the scope of this blog.
