Evolving Financial Advisers: The AI Revolution at the 2024 Artificial Intelligence in Financial Advice Conference

LONDON, July 10, 2024 –

Gather round, dear financial advisers, as we delve into the delightful dystopia unveiled at the 2024 Artificial Intelligence in Financial Advice conference today. Held at the charmingly impersonal Pullman Hotel in London, the event revealed a future where half of the advisers aged 58 and above are frantically plotting their exit strategy within the next two years. Why, you ask? Because AI is knocking on the door, and it’s not bringing cookies.

According to Ian McKenna, the insightful founder and director of F&TRC, artificial intelligence isn’t just the next big thing – it’s the fifth industrial revolution. For those keeping score, that’s right after steam engines, electricity, computers, and the internet. McKenna, with a twinkle in his eye, declared, “AI will catalyse significant numbers of older advisers leaving the industry.” He might as well have said, “Run for the hills, dinosaurs.”

Research over the past few years suggests that around 50% of advisers aged 58 and above are already pondering their great escape. As McKenna so graciously put it, “AI advisers will emerge that, on a technical level, can do everything an adviser can do.” Translation: robots are coming for your jobs, and they don’t need coffee breaks.

But don’t despair just yet. There’s a silver lining, albeit one laced with a touch of irony. Technical financial advice is soon to be available for free. Yes, you read that correctly – free. McKenna’s crystal ball reveals a world where you can talk to software, and it’ll spit out a financial plan. Today in 2024, it’s like chatting with a slightly less sarcastic Siri. Imagine what 2034 holds. Spoiler: it’s more robots.

However, McKenna wasn’t just about doom and gloom. He offered a lifeline to the human advisers teetering on the edge of obsolescence. The key, he suggested, lies in focusing on the psychology and behavioural science elements of advice – the touchy-feely stuff that machines find hard to replicate. Advisers need to plan the client before planning the money. In other words, treat the client as the customer, not their bank account.

The Financial Conduct Authority (FCA) is also playing its part, pushing for technology to bridge the advice gap. McKenna’s message was clear: “Advisers need to focus on skills machines find harder to replicate.” So, gear up for level eight qualifications, because who doesn’t want to achieve doctorate-level expertise just to stay relevant?

In a world where AI is advancing at warp speed, the human touch remains vital. McKenna assured the audience that there would be a healthy demand for human advice, provided firms fully embrace AI and emerging technologies.

Adding fuel to the fire, a survey by US-based business consultancy Gartner revealed that 62% of chief financial officers and 58% of chief executives believe AI will significantly impact their industries in the next three years. So, while AI may transform adviser demographics, it will also shake up everything from journalism to agriculture. Apparently, no one is safe.

For the senior business executives surveyed, growth remains the top priority. However, AI, technology, and workforce considerations are hot on its heels. As Gartner’s Alexander Bant pointed out, three years is a short horizon for such monumental changes, and senior executives must brace themselves for the challenges ahead.

So, financial advisers, the message is loud and clear: evolve or evaporate. Embrace the tech, hone those soft skills, and maybe – just maybe – you’ll navigate the AI storm without getting swept away.