In the past decade , Artificial Intelligence ( AI ) has evolved from a futuristic concept in Sci-Fi films to a powerful tool in modern-day business and personal life . While it has already made a significant impact on investment markets , the potential for AI to revolutionise financial advice is rapidly gaining attention . As technology continues to advance , the future of financial advice could be shaped by a collaboration between human expertise and AI-driven efficiency .

Steve Hunter

Head of Business Development , Momentum Global Investment Management

AI has made significant strides across various sectors , and the financial services industry is no exception . In the UK , the integration of AI into financial advice is expected to transform how services are delivered , making it more efficient , personalised , and accessible .

The UK financial advice sector is currently characterised by traditional advice firms and advisers who offer personalised advice based on a deep understanding of their clients ’ financial situations , goals , and risk tolerance . While this approach is extremely valuable , it is also timeconsuming and costly , making high quality advice out of reach for many .

On the other hand , digital platforms and roboadvisers provide automated , algorithm-driven financial planning at a lower cost , but often lack the personalised human touch an adviser can deliver .

However , forward-thinking advice firms have the potential to bridge the gap between traditional financial advice and digital solutions , combining the best of both worlds .

Making it personal

AI can support financial advisers by analysing complex data to provide highly personalised advice . By leveraging algorithms , systems can assess an individual ’ s financial situation , spending habits , investment preferences and risk tolerance , enabling advisers to offer tailored rather than generic advice .

Increasing efficiency

Automating routine tasks such as data collection , analysis , and reporting allows financial advisers to focus on more complex and value-added services of the client experience . Tools now exist that can automatically update financial plans based on real-time data helping advisers align investments with their clients ’ goals and market conditions , increasing overall efficiency .

Analysing results

AI ’ s ability to analyse historical data and identify patterns can assist in asset allocation decisions . This capability can help both investment managers and financial advisers make more informed decisions , potentially improving investment outcomes .

Managing risk

Managing risk is another ideal application for AI . By continuously monitoring market conditions and risk factors , it can alert investment managers to potential issues in portfolios before they become significant problems , allowing for timely adjustments to investment strategies .

What could the next decade bring ?

The integration of AI into both investment management and financial advice offers several potential enhancements , including broader access to affordable financial advice . With AI making processes more efficient , advice can become more scalable , providing consistent and objective

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