The boundary of the application of artificial intelligence (AI) has been much debated, but two advice services have taken the technology conceptually in different ways to aid the advice process.
Although there may be the natural anxious reaction from advisers that AI or other technology could replace them, recent research from Neilson & Co Wealth managing partner Ben Neilson has asserted that AI tools will, at best, complement industry professionals rather than replace them.
On example is Australian-based start-up paraplanner.ai, which will soon debut in the US market. The technology behind services aims to automate time-consuming tasks and give frequent, personalised attention to financial planners’ clients through AI.
These tasks are typically covered by paraplanners, but with the talent shortage in the advice profession impacting support staff as well as financial advisers, the firm believes there will be demand.
“We’re looking to automate a lot of the admin-heavy tasks from client onboarding to plan production and client engagement that financial planners shouldn’t be focusing on,” paraplanner.ai chief growth officer Alex Gassner tells Professional Planner.
“[By stripping out] all of that type of work, they can focus on delivering value to clients and growing their business.”
With the spike of interest in services like ChatGPT, Gassner says that AI will only grow in significance within the finance industry.
“It will allow professionals to spend more time on things that add value, helping clients navigate complex financial and emotional life decisions that have a real impact on their goals and objectives,” he says.
“What this means is that advice businesses are finally able to scale a white glove service offering.”
Global expansion on the cards
Prominent US investor Antler has backed paraplanner.ai, which will initially be targeted at the US market, but Gassner says there are other markets in mind, including his home market.
“With my experience of a decade in the Australian market, having run out-sourced paraplanning and practice consulting businesses, I will be spearheading expansion in the Australian market when the time is right,” Gassner says.
Additionally, paraplanner.ai CEO Denis Konoplev has highlighted the platform’s comprehensive approach to ensuring strict adherence to relevant laws.
“We have collaborated with legal experts, committed to exceeding minimum standards, and developed a rigorous quality control process,” Konoplev says.
Data security and privacy are also of utmost importance for paraplanner.ai, according to chief operating officer Fauzi Fellal.
“[We follow] established standards, prioritise data processing, and actively participate in relevant events to ensure responsible AI innovation,” Fellal says.
AI has power to enhance
Taking a different approach to implementing AI, end-to-end advice tech provider Dash has developed an AI-backed avatar that can be used to present the advice to clients despite the advice still being 100 per cent prepared by a human adviser.
Dash CEO Andrew Whelan says the provider uses a digital Statements of Advice software platform “to break through the scale issues that advisers can sometimes run into”.
“What our advisers are doing is using AI to take away [the] presentation aspect, script what the bot will say, and use a deep fake program to make it look like them,” Wheelan says.
The initial feedback Dash received regarding this AI process was that existing clients either did not notice or did not care that advisers did not actually present the advice personally.
“What [Dash is] doing now is reviewing every aspect of the financial planning process and trying to figure out how to facilitate advisers adopting AI in each area where they would [like to add efficiency].”
Whelan says the industry already has optimisers that can do all the calculations and strategy, but people still want the person at the centre.
“When you’ve got comprehensive and sophisticated planning needs, that needs to be human,” he says.
“[But advisers who can’t] run their practice at a commercial rate can benefit from AI.”
