The use of generative artificial intelligence (AI) is becoming increasingly more prevalent in industry, including in financial services. Specifically, growing numbers of financial advisors are using generative AI for at least one business purpose.
That’s according to research from the Million Dollar Roundtable (MDRT), a trade association for insurance brokers and financial advisors. Per the report, cited in BenefitsPro: “‘As generative AI continues to be a popular tool across professions, many financial service professionals are following suit and taking advantage of its capabilities,” according to the research report. “When it comes to how these programs are used in financial services practices, the majority of American financial advisors and insurance agents have at least some knowledge of how they can leverage AI in their practices.’”
The MDRT report cited specific ways advisors are using AI, including:
- Employee onboarding: 45.5%
- Processing employee or client data: 41%
- Client communications: 40%
A majority of advisors (94%) said they have at least heard of AI, and 64% said they know how it works. There’s also a gender preference: male advisors (90%) are more likely to use AI than their female peers (72%). More than half of advisors who are actively using AI have been doing so for less than three months. This is no surprise, given that the technology is still relatively new. Among those who aren’t using it yet, half say they are likely to learn how to do so.
According to the MDRT report, “‘Generative AI can be a beneficial tool to help professionals with countless processes… It is important for financial services professionals to take advantage of their resources and use them as steppingstones for growth. By tapping into their digital capabilities and making use of generative AI programs, financial advisors will be in a great position to continue serving their clients while staying on top of developments.’”
MDRT President Greg Gagne, quoted in BenefitsPro, said that putting generative AI to use will become imperative, if it isn’t already. He emphasized the need for advisors to adopt new technologies to gain a competitive advantage and stand out in a crowded marketplace.
Cultivating and maintaining client relationships requires a human touch, thus it’s unlikely that AI will fully replace advisors in the future. However, advisors should take a proactive approach to embracing AI to leverage its ability to help with everything from smart investment decisions to facilitating routine financial and client management tasks.
