Artificial intelligence and the Quality of Advice Review are among the key themes Investment Trends seeks insight on with the researcher preparing to launch the 2023 iteration of its Adviser Technology Needs and Adviser Business Model Survey.
The researcher’s 2023 Adviser Technology Needs and Adviser Business Model Survey, aims to gain an understanding of issues advisers face when it comes to technology in their business.
These insights include technology preference and gaps which gives the opportunity to influence technology providers, regulators and the evolution of business. Advisers interested in contributing to the survey can do so here.
Digital advice featured in the Quality of Advice Review proposals with Michelle Levy which backed the expanded use of digital advice tools and creating a stable regulatory system to do so.
Investment Trends head of research Irene Guiamatsia tells Professional Planner a distinct feature of digital advice solutions is the deliberate focus on superannuation funds or larger licensees as primary target users.
“This is in near-perfect congruence with some of the key recommendations of the Quality of Advice Review final report,” she says.
The Minister for Financial Services Stephen Jones announced last week the Government would announce its response to the proposals.
Last year’s survey revealed that advisers are using an average of three platforms, the highest in the past 10 years.
“This trend highlights their prioritisation of efficiency and reliability in the current competitive landscape,” Guiamatsia says.
Differing value propositions and the moving around of client books due to the 12,000 advisers that have departed the industry since the final report of the Hayne Royal Commission was cited as a factor.
Additionally, last year’s research found seamless integration is a top priority for advisers with two-thirds expressing their willingness to use an end-to-end advice solution if is available.
Efficiency and reliable technology are key factors in advisers’ choice of providers, while advisers are also intending to move towards owning their own AFSL.
However, the compliance burden remained a major challenge for advisers, who were seeking better integration and standardised solutions to navigate the complex regulatory environment.
“Many of the jobs traditionally done by planning software or advice tech providers are the ones for which advisers are most interested in seeing investment platforms enhance their capabilities,” Guiamatsia says.
“Advisers now prioritise platform providers based on efficiency, reliable technology, and seamless integration, highlighting their growing expectations for quality service support.”
With the proliferation of AI tools in the mainstream this year, like ChatGPT, the survey will suss out adviser appetite to take on more automated tools in the advice process.
“We do ask some back-looking questions as well, in terms of whether or not they’ve incorporated AI like ChatGPT,” associate research director Sam Alaaeddin says.
“The 2023 report will also encapsulate a lot of the static/consistent questions that are more or less consistent in the different versions of the report that we produce over the years.”
