The topic of AI invokes strong opinions and emotions in people. Some are excited about the potential for AI to transform lives and businesses while others are worried about the future.
While interest in AI is off the charts and many are using AI tools, when it comes to fully capturing the opportunity, the advice industry is yet to see significant transformation of efficiency. Many firms are still trying to figure out how to get the most out of their existing tech and which off-the-shelf AI solutions to use for simple tasks like booking meetings and file noting. They are years off transforming their whole business model using AI and there is a lot of hesitation, somewhat understandably.
But it’s important to move forward despite the uncertainty. Engaging with disruptive technology is a journey of many steps and there are no shortcuts. Businesses that are adopting a ‘wait and see’ approach will fall behind faster than they think.
Instead, businesses should continuously experiment with AI and move ahead, however incremental, because “slow is smooth, smooth is fast”.
Originated by the US Navy Seals, this expression represents how extensive preparation is for a new mission. The Seals walk through a plan step-by-step and rehearse responses to different possible scenarios. They repeat the process until each response has become smooth and ‘muscle memory’ allows them to execute quickly in combat.
The takeaway for businesses owners is that it takes time to get really clear on the problem they are trying to solve and understand how to use available technology to solve it in the simplest way possible. Many businesses regret rushing in after seeing a great demo at the conference. AI solutions in particular are often quickly supplanted by a competitor, meaning nothing should be embedded for the long term.
The best place to start on this journey is to conduct a task level analysis of every role. This involves listing the low value repetitive tasks like data entry (which can be automated using robotic process automation), medium value tasks like workflow management and reporting (generative AI can be leveraged to do these faster) and the high value tasks that humans will continue to do, with more help from AI over time.
Of course, real progress can’t be achieved unless a practice’s data is clean, complete, secure and in a digital format for cloud-based software and AI tools to access. Processes also need to be documented and mapped. Not only is this important for training team members and delivering consistent service and advice, it is the first step towards automating tasks and, more broadly, corporatising and scaling businesses.
People matter
So far, the fearmongering that AI is coming for everyone’s jobs has been overstated, at least in the short term. Yes, many of the roles that it threatens to disrupt are entry level jobs involving administrative tasks that are repetitive and mundane, albeit essential. This makes outsourcing companies like Vital Business Partners particularly vulnerable to AI disruption. Yet, there is still strong demand for both traditional core roles and many new ones such as exception handlers, data scientists and bot designers.
While AI will make some jobs redundant, it is also creating new jobs. Whether that balances out remains to be seen but, in advice, the situation is more nuanced. The potential to achieve operational and cost efficiencies, and accelerate growth, is significant for businesses that choose to engage with disruptive technologies, rather than adopting a ‘wait and see’ approach.
For most, the optimal model is a ‘human + AI’ operating model, where AI serves as a digital assistant and robots automate the lower value tasks, freeing people up to learn new skills, do more interesting and higher value work, and advance their careers. As such, firms embracing AI and automation are better positioned to increase employee engagement and satisfaction and retain talent.
This scenario represents a distinct shift in many businesses because the delivery of professional advice is still heavily dependent on people.
Getting businesses to this stage will be a journey and there will be rest stops and bumps along the way. Unless advisers want to become an AI or automation expert, they will need to lean on experienced, well-resourced partners. Leading people through change and working effectively with partners requires planning, thought and focus. Small steps, taken after careful planning will ensure business move forward smoothly and ultimately, fast.
Nathan Jacobsen is chief executive of VBP and a former officer in the Australian Navy (although not a Navy Seal).
