Smaller advice firms face challenges in implementing AI, with cost and knowing where to start being the main obstacles. However, focusing on the “pain points” of the business can help determine where AI can be most beneficial.
Implementing AI in smaller advice firms can help streamline processes and improve efficiency, but it is important to be cautious in its use.
In a recent panel discussion at Money Marketing Interactive in London, Almond Financial paraplanner Ryan Sharpe highlighted the challenges faced by smaller advice firms when it comes to implementing artificial intelligence (AI). According to Sharpe, the two main obstacles are the cost and knowing where to start.
To overcome these challenges, Sharpe suggested that smaller firms should focus on the “pain points” within their business. He specifically mentioned two pain points that AI can potentially address: the time it takes for advisers to put together notes following a client meeting, and the lengthy process of onboarding new clients. By using AI, firms can automate the process of note-taking and streamline the onboarding process, making it more efficient and time-saving.
Sharpe mentioned that Almond Financial is considering introducing AI in these areas to improve their operations. He advised other firms to research their teams and identify the most annoying or time-consuming tasks, and then explore whether AI can help alleviate those pain points.
However, Sharpe also emphasized the need for caution in using AI. While it can bring numerous benefits, it is essential to carefully consider how AI is implemented to ensure it is used effectively and ethically.
Rohit Vaish, co-founder of Saturn AI, also spoke during the panel discussion and reassured advisers that AI will not replace human interaction. Instead, it can assist advisers in remembering important details that they may otherwise forget. For example, if a client’s wife is pregnant, AI can remind the adviser to ask about the pregnancy’s progress.
Vaish further mentioned that the use of AI can potentially double the number of clients a planner can see. This is because AI can automate certain tasks, allowing advisers to spend more time with clients and provide personalized advice.
Scott Millar, founder and financial planner of Finova Money, agreed with Vaish’s point and added that AI can help advisers focus on client interactions. However, he acknowledged that there may be resistance from certain customers when it comes to embracing new technology.
In conclusion, smaller advice firms can benefit from implementing AI by focusing on their pain points and using technology to streamline processes and improve efficiency. While caution is necessary in utilizing AI, it can enhance the client-adviser relationship and allow advisers to provide a higher level of service.