While the onslaught of artificial intelligence (AI), specifically ChatGPT, has proven to be a sudden and bumpy transition, financial advisors – among many other industries – have eagerly begun trying to fit the technology into their practices. The AI chatbot has the ability to interface with clients and prospects while analyzing data and drafting memos. Still, many financial professionals are balancing their interest in this new technology with concern and wariness.
In a survey of 100 financial advisors who participate in SmartAsset’s SmartAdvisor matching platform, approximately 60% said that they are using or interested in testing out generative AI such as ChatGPT – and they told us how they’re currently or planning to use it.
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57% of Advisors Are Already Using or Interested in Testing Out ChatGPT
When asked, “Are you currently using generative artificial intelligence (AI) such as ChatGPT in any aspect of your advisory practice?” 27% of respondents replied that they are using or testing it out in some capacity. Additionally, 30% of respondents said they haven’t used ChatGPT but want to test it out.
In contrast, 43% of respondents answered that they are not using AI such as ChatGPT and don't plan to.
When asked as a follow-up, “If you are not using AI or ChatGPT, why not?” 38% of respondents answered that they are not comfortable with the technology. Another 26% of respondents answered that AI isn't permitted by compliance or management. In addition, 23% of respondents in the survey responded that they have privacy concerns with AI or ChatGPT.
How Advisors Are Using ChatGPT in Their Practices
For advisors who use ChatGPT in their practices, they were asked, “If you utilize ChatGPT, how are you using it?” Among those responding, 44% answered that they use ChatGPT for writing educational blog content about finance topics. Additionally, 28% of respondents reported using ChatGPT to follow up on leads with prospects. And another 28% answered that they use it for routine communications and scheduling.
Among ""other"" reasons, advisors answered they use ChatGPT to see how it responded to certain finance topics or ask ChatGPT questions about marketing.
The Future of AI and Financial Advising
AI is garnering interest in the financial advising community for its potential to streamline certain marketing, outreach and data-crunching tasks.
“Perhaps the greatest impact (of AI) for customers will be seen in financial advisory services,” Arthur Weissman, co-founder of the firm Industry FinTech, told SmartAsset earlier this year. “(It) will yield an improved customer experience, a lowering of overhead costs and (provide) greater access to more options for investors.”
Generative AI may one day create new opportunities for advisors to serve clients and grow their client base. It may even be able to crunch reams of data and offer tailored portfolios and financial plans to disparate clientele. But advisors who intend to use AI as part of their advisory business will need to be disciplined in understanding the technological and compliance-specific limits of this technology as well.
In a survey of 100 financial advisors who participate in SmartAsset’s SmartAdvisor matching platform, the majority of respondents said that they are using or testing out generative AI such as ChatGPT. Advisors are using it for tasks such as writing educational content.
Survey data for this report was collected by SmartAsset through SmartAdvisor between March 29, 2023, and April 12, 2023, and includes the responses of up to 100 financial advisors.
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