Article originally featured by Advocis for Financial Literacy Month 2023.
Written by: Ray Adamson, Chief Customer Officer at Lavvi & Emily Reed, CEO & Co-Founder at HeyAdvisor.
In today’s rapidly evolving digital landscape, AI stands at the forefront, shaping countless industries and influencing our daily lives. The financial services industry is being impacted even more as young Canadians navigate AI-driven tools and platforms. But what does this mean for traditional financial education, and how is AI enhancing or challenging the norms?
The following are key questions we should be asking about the role of AI in financial planning conversations, as well as how financial advisors can support consumers through the changing landscape.
Yes. Often, AI tools are available at no cost, enabling more individuals to access financial knowledge without imposing a financial burden. This free accessibility to financial data via AI can enhance financial literacy across all communities by offering tools and resources that were previously available only to those who could afford professional advice.
While AI offers convenient and readily available financial insights, the human touch of financial advisors remains indispensable. The emotional understanding and the nuanced advice offered by financial advisors often goes beyond the data, encompassing empathy and a deep understanding of individual life situations, dreams and fears.
Some concerns include:
Like many of us, advisors are beginning to experiment with AI to assess how it can positively impact their business and their clients. AI has the potential to quickly automate routine tasks and communications, potentially making it easier for them to keep you updated on information pertinent to you. It also can introduce a multiplier effect on the advisor’s capability in that more in-depth information and guidance can be created in much shorter time frames.
It is hard to tell if, and how, someone is using AI in their business. It is fair to ask your advisor(s) if they are using AI, and if they are, how are they ensuring your confidentiality and security. In these early days of access to AI tools, it’s important that we are informed of how our personal data is being used, and if there is a risk of exposure as a result. The financial planning process contains sensitive personal information, and when shared into digital platforms, might be susceptible to breaches or shared as public data. Advisors and consumers must be aware and cautious about the type and amount of information shared on these platforms.
HeyAdvisor is a digital content library that financial advisors leverage to connect with their clients. The highly engaging educational library of videos and infographics is white-labelled with advisor branding and can be integrated into email marketing campaigns, websites, client portals and social media. The intuitive library is grouped by life events making it easy to add value to the client relationship at times in their lives that matter most. Review our plans here.
