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As artificial intelligence (AI) rapidly becomes an invaluable tool, FPSB India, the Indian subsidiary of the Financial Planning Standards Board shared the global research report titled “How AI is Reshaping the Financial Planning Profession.”
The research reveals insights into the use and impact of AI in financial planning, with two in three financial planners reporting that their firms are already using AI or planning to adopt it within the next 12 months. FPSB conducted the study by surveying over 6,200 financial planners across 24 territories worldwide, in collaboration with its global network of organizations.
Key findings from FPSB’s Impact of AI on Financial Planning global research include:
• Improved client services: Over three quarters of financial planners (78%) believe AI will help them better serve clients, while 60% believe it will enhance the quality of financial advice.
• Widespread AI adoption: Of the two-thirds of firms that either have or are planning to leverage AI in the next 12 months, adoption rates are highest among small or very large firms. 50% of financial planners have a positive outlook on AI, while only 8% view it negatively.
• Lower cost and increased access: 59% of financial planners see AI as a tool to help reduce the cost of financial planning services and 60% believe it will increase access to financial planning for underserved populations.
• Usage of AI in financial planning: Almost half of financial planners using AI have deployed it to support delivery of client services such as client communications (41%), client data collection (33%) and client risk profiling (30%). One in three are using AI to improve operational efficiency, for example in marketing and promotions (35%) and the client onboarding process (34%).
• Concerns with AI: Despite the benefits, financial planners expressed reservations regarding the use of AI, with 47% citing data privacy and cybersecurity concerns and 42% concerned about the accuracy and reliability of AI output.
• Need for professional development: To better adapt to AI, 49% of financial planners expressed a need for professional development to improve their data analysis and interpretation skills. Over a third (36%) believe both the public and the financial planning profession will greatly benefit from general education and training on AI.
In a press release, Krishan Mishra, CEO, FPSB India said, “This global research reinforces our belief that when technology is integrated with the human-centric approach and empathy, and ethical commitment of CFP® professionals, it can lead to truly transformative client outcomes.”
“With financial planners recognizing AI’s potential to lower costs and believing it will expand access to underserved communities, AI is paving the way for more affordable financial advice. This technology is not just reshaping the practice of financial planning but may also open doors for those who have historically lacked access to critical financial services,” said FPSB CEO Dante De Gori, CFP.
