A majority of advice firms have or are planning to integrate artificial intelligence (AI) into their practice, but a report from Netwealth has warned against the risks of putting client information into public third-party systems like ChatGPT. 

The platform provider’s ‘Network 2023 Advice Tech Report, Humans and Machines’ found roughly half of financial advice firms are currently either testing (11 per cent) or thinking about integrating of artificial intelligence (34 per cent) into their practice. 

“As a word of warning, remember to never upload client details or personally identifiable information to any public AI system, like ChatGPT,” the report said. 

Some 50 per cent of the firms say using AI will greatly improve their business, and around seven in 10 of the firms considering AI are hoping it will them assist with their marketing activities. 

Additionally, the report states that “[of] the AI interested advice firms, 65 per cent anticipate increasing their AI spend in the coming year”. 

“Some are leveraging ‘embedded AI’ – which is the AI built into their current software,” the report said. 

Specifically, 37 per cent use AI in their CRM system, and 24 per cent use it in their investment or superannuation platforms. 

Additionally, 22 per cent of these firms employ AI within digital advertising optimisation tools like Google Ads, and 17 per cent are considering the new Microsoft Copilot. 

“AI interested” firms also expect AI to improve client services (89 per cent) and staff productivity (67 per cent), with minimal concern about job cuts (15 per cent), according to the report. 

“What is clear from [the] research is that there is a lot of hope in new technologies including AI to drive more productivity, efficiency, and value in the business and for clients,” it said.