How is AI rewiring financial planning? Global survey sheds light

As AI adoption continues to gather momentum across the global wealth industry, financial planners are still getting to grips with the emerging technology – and  while there's no final verdict yet, new research points to a positive outlook overall.

More than three-quarters of financial planners around the world believe artificial intelligence will improve their ability to serve clients, according to a new global study released Tuesday by the Financial Planning Standards Board.

The research, which surveyed over 6,200 financial planners in 24 territories, found that two-thirds of advisory firms are already using AI or plan to adopt it within the next 12 months. 

Adoption is especially strong among smaller firms and the largest institutions, the report found. Over 70 percent of planners at small firms – those with 2 to 10 planners on the team – said are either already using AI, piloting it, or planning to implement it in the next 12 months; more than 60 percent of those at very large firms said the same.

“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,” Dante De Gori, chief executive of the FPSB, said in a Wednesday statement announcing the results.

Among planners at firms already using AI, nearly half are leveraging the technology to assist with client-facing functions, including communications, data gathering and risk profiling. A third of respondents also reported using AI to streamline operations, particularly in marketing and onboarding processes.

Despite overall optimism, many financial planners remain cautious about potential risks. Nearly half (47 percent) cited data privacy and cybersecurity as the biggest concerns with AI in the financial industry, followed by questions about the reliability and accuracy of AI-generated outputs (42 percent).

On balance, planners in the survey agreed AI would lead to real benefits for practices as well as consumers and investors. According to the report, 78 percent of respondents believe AI will help them better serve clients, while 60 percent say it will improve the quality of advice. Meanwhile, 59 percent believe it can help reduce costs, and 60 percent say it can improve access to financial planning for underserved communities.

When asked how AI could enhance the financial planning process, planners agreed it would be most beneficial in collecting client information, analyzing their financial status, and developing recommendations that can be presented to clients.

Planners also indicated a need for additional training to keep pace with technological advances. Nearly half (49 percent) said they need to enhance their skills in data analysis and interpretation, and over one-third (34 percent) advocated for general education on AI for both professionals and the public.

“We are witnessing a pivotal moment in the financial planning profession as financial planners embrace AI to work smarter, allowing more time to engage in deeper human connection with clients,” De Gori said.

Do US-based financial planners see AI differently from their global peers? That's a question for another time, as the FPSB research report didn't break down the data by region.