AI Financial Advice Needs the Human Element
Recently, I had the privilege of attending a fireside chat on AI in the workplace with several accomplished women in leadership. Their backgrounds weren’t in fintech, but in life sciences and biotech. These industries, like financial services, are at the cutting edge of AI integration, harnessing technology to drive change – particularly in disease diagnosis and new treatment pathways. But what stood out to me, was how deeply these leaders understood something we often forget in the automation conversation: the technology is only as impactful as the human guiding it.
They spoke about AI’s ability to process data at scale, analyse patterns across populations, and streamline everything from diagnostics to regulatory filing. But they also spoke with clarity, and some urgency, about the need for human judgment. In biotech, the stakes are literal life and death. But it struck me how much their insight applies to what we see in finance.
Advisers, paraplanners, and compliance professionals are not just moving numbers. They are helping people make decisions that shape their futures. AI, no matter how advanced, can’t yet replace the human ability to listen closely, understand nuance, or deliver difficult news with empathy.
And still, the opportunity AI offers is enormous.
In the recent systematic review AI in the Workplace: A Systematic Review of Skill Transformation in the Industry (Babashahi et al., 2024), researchers found that across industries – from accounting and legal services to education and mining – AI’s integration was transforming workflows and prompting widespread shifts in required skills. Yet one finding came through consistently…the organisations seeing the most success were those using AI to augment, not replace, their workforce.
In the finance sector, this looks like something very practical. AI financial advice tools can help write IFA advice reports in a fraction of the time it once took. A professional paraplanner or adviser can use AI to review vast amounts of client information, catch inconsistencies, and produce compliant reports faster. These systems offer clarity, speed, and reduced admin overhead, but they don’t know the client. They don’t understand what’s unsaid in a fact find meeting, or how to balance technical accuracy with emotional timing when discussing pension options after a bereavement.
This isn’t a limitation. It’s a strength. But only if we treat AI as a collaborator, not a replacement.
What this means for financial services is a redefinition of roles, not a reduction. Advisers still lead the conversation. The best professional paraplanners will use AI to increase their capacity, not shrink their value. Compliance teams can shift from error checking to forward planning and quality analysis. The result? Better IFA advice reports, produced faster, with more time available for meaningful client engagement.
Of course, job displacement is a valid concern, especially for junior roles. The 2024 study identifies this challenge too, and highlights the importance of continual skill development and strategic workforce planning. Those who adapt, who learn to work with AI, stand to gain the most.
Ultimately, we believe the future of advice is hybrid. Human led, AI supported. We need empathy as much as we need efficiency. Because no matter how powerful the system, it’s people who make the decisions that change lives.
