Technology arouses logical reaction of fear in advisers

Many advisers still perceive technology as a threat to their profession, fear the rise of artificial intelligence (AI) and hold concerns about being replaced, according to Adviser Intelligence.

Adviser Intelligence founder and chief executive officer, Jacqui Henderson said advisers still hold doubts about the positive benefits of technology as the negative impacts on their profession remain more overwhelming.

In an Adviser Intelligence paper, Henderson said advisers had a ‘logical reaction of fear’ when it came to technology threats but that fully-automated advice capabilities would not drive better standards and outcomes for clients as they were not yet programmed to analyse multifaceted situations.

Related News:

“Robos will arguably help to drive greater client engagement because they offer the promise of affordable and accessible elementary advice,” she said.

“Fear of redundancy by so-called robots is perhaps equated to the re-tooling of modern manufacturing production lines.”

Whilst the rise of robo-advice and AI would call for a re-structure on the role of the adviser, Henderson said the focus on personal relationships within the industry would continue to render its human workers necessary in the current term.

 “No algorithm or robo-adviser in the world right now can deliver a complete answer to complex financial situations involving different considerations such as estate planning, taxation, wealth protection and risk management,” she said.

“It will not diminish the need of clients to seek a personal human relationship with their adviser, especially as more sophisticated holistic, or complete, financial advice is required.

“An algorithm can’t empathise with clients’ emotions; their concerns and fears.”


Related Content

ASIC confirms scrutiny of industry funds advice

Conflicts of interest impacting the quality of financial advice are not restricted to retail superannuation funds, according to the Australian Securit...Read more

Tech puts value of advice in question

Addressing a room of financial advisers at the Portfolio Construction Forum’s 2019 Finology Summit yesterday, US-based financial planner, Michael Ki...Read more

ASIC winds up illegal land banking investment scheme

The Australian Securities and Investments Commission (ASIC) has wound up an illegal land banking investment scheme along with its associated entities,...Read more


Add new comment