Artificial intelligence is everywhere and that includes investing and financial planning. Much of its impact at present is areas not immediately obvious to the casual observer, such as research and back-office work.
Eoghan Gavigan, director of Highfield Financial Planning, says his company is still largely focused on using AI where it is reliably at its best.
“We use AI mainly for administrative tasks and research, as such our use is all behind the scenes,” he says.
“AI is already well embedded in back-office processes, bringing a number of efficiencies to the investment industry,” says Ciara Ryan, AIB’s head of wealth and general insurance.
RM Block
Prof Michael Dowling, founder of AI banking tech firm Narrative, says the sector is quite cautious still around the technology. “Most organisations that use AI are still just using Microsoft Copilot and calling that an AI capability. It’s not.”
Despite this, he’s confident that the change will come sooner rather than later. “Speed will be the first real sign of impact that most people will see. It will be quicker to do the things you want to do, whether that’s investing in a new fund, or taking out a loan.”
Ryan is keen to point out that there are limitations to what the technology can do in the here and now.
“AI can genuinely improve efficiency across the investment industry and while it’s great to see people becoming more aware of options available to them when it comes to maximising their finances, there is a big difference between information and advice,” she says.
It’s not just the technical limitations of AI when it comes to the complex minutiae of investment, there are other factors that play a role in restricting its usage.
“Pension legislation can be quite technical, and it changes regularly and AI can sound extremely confident about an issue even if the information it is providing is entirely incorrect, which makes errors hard to spot unless you know the rules,” says Gavigan.
While a generic AI assistant can be helpful, it’s not exactly what’s required when you need to thoroughly examine a financial decision. “I think its usefulness is overstated when it is treated as personalised advice, particularly as advice and recommendations can be based on outdated, incomplete or inaccurate information,” says Ryan.
“Human judgment, knowledge and experience will remain essential in helping customers weigh priorities, navigate complexity and make decisions that reflect their goals and values.”
“We believe that AI is best used as a tool to provide a human with information to formulate recommendations,” says Gavigan.
AI can already make advisers faster by addressing the mundane. The key aspect to watch is how it evolves to offer real assistance to advisers when it comes to decision-making.
