Will Artificial Intelligence Make Human-Based Financial Advice Obsolete?
CFP® Certificants in the News
CFP Board tackles this article’s titular question with its recent article ominously titled “Yes, AI IS Going To Take Your Job.” That provocative title may be a bit dramatic but it is a wakeup call for financial advisors and planners. We’re at a crossroads but not a dead end—CFP Board CEO Kevin R. Keller declared “Recent studies suggest that AI will dramatically change the role of financial planners. However, most people seek verification from a financial advisor after consulting AI.”
According to an Investment News article quoted by CFP Board, a new study from the University of Chicago Booth School of Business, AI can “outperform human financial analysts in predicting price changes from financial statements.” Here are the study’s key findings:
“Superior Accuracy—The study shows that GPT-4, even without narrative or industry-specific information, surpasses human analysts in predicting the direction of future earnings.
Keep in mind that these conclusions were reached by one study and may or may not withstand the test of time. However, we’d all be wise to consider the article’s conclusion that financial advisors can use AI to complement, rather than replace humans. Specifically, financial advisors should “focus more on strategic advisory services, client relationship management, and personal financial planning.”
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