The Reality of Artificial Intelligence in Financial Planning
Artificial intelligence is making its way into the workflows of financial planners, but the adoption is more uneven than industry headlines suggest. In workshops on emotional intelligence, only around 20% of advisors say they use AI on a daily basis, with most remaining cautious or waiting for ready-made solutions that don’t require customization.
For those who do use AI, its adoption is narrow, mainly limited to generating meeting transcripts and summaries. Some advisors take it a step further by using tools like ChatGPT to analyze client insights from transcripts. However, there are risks involved as AI-generated outputs, while impressive on the surface, can contain errors.
One common issue is that AI transcripts are treated as objective records when, in reality, they can be distorted by accents, background noise, and other factors. Additionally, AI captures only a narrow slice of human interaction, missing crucial non-verbal cues like facial expressions and posture.
False AI Flags
AI transcripts often lack the context needed to accurately interpret human interactions. An example shared by an advisor highlights this gap, where AI misinterpreted lighthearted banter as a serious concern. Personal testing further revealed discrepancies between AI analysis and actual client reactions.
Proceed with Caution When Relying on AI
Financial planners are advised to approach AI outputs with caution, especially when it comes to emotional intelligence. While AI can provide a summary of what was said in a meeting, it falls short in understanding the emotional nuances and context behind those words. Advisors should use AI as a prompt for human judgment rather than a definitive interpreter.
While AI offers time-saving benefits, it is essential for advisors to review its outputs to avoid potential misunderstandings or errors. By understanding the limitations of AI and using it judiciously, financial planners can leverage its capabilities effectively in their practice.
For more information on the challenges of AI-generated meeting summaries, you can refer to the source here.
