Why this adviser is using ChatGPT to help his clients

artificial intelligence AI financial advice financial planning chatgpt

17 January 2023
| By Rhea Nath |
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With its advanced ability to streamline and simplify content, AI chatbot ChatGPT could prove a useful tool in providing financial advice. 

According to Ben Neilson, founder and director of Neilson & Co Wealth Management in Queensland, it could assist with less complicated tasks that require publicly-accessible information, such as explaining how superannuation contributions worked and basic rules and limits to consider.

Neilson had previously been researching how the time to provide financial advice could be reduced as part of his PhD at the University of Southern Queensland and was curious about the AI chatbot when it was launched last November, later using it with clients in his practice.

“Practically speaking, if you can automate parts of your life so you don’t need to be involved, why not use it? From what I see, people seem to be all for it or completely against it, but why can’t you use some?” he stated.

“Why can’t you use the software to help with the work and then look over it? Why charge for 10 hours when you can do the work in one hour?”

At his practice, the use of ChatGPT translated to quicker turnaround periods for documents and requests by simplifying the groundwork required. Clients were informed of its use and Neilson said they were content with this alongside his professional opinion.

“ChatGPT doesn’t understand implied theory, so if we were to talk about super in this case, it could provide a singular strategy but it doesn’t understand how to interpret cashflow and other information,” said Neilson, adding that created documents still received a once-over from an adviser before reaching clients. 

Much of his confidence around the use of ChatGPT in financial advice stemmed from his own PhD formal research which found the chatbot could compare favourably with strategies from other licensees.

When tasked to recommend a $10,000 non-concessional contribution to super, after spending some time teaching ChatGPT about the Corporations Act 2001, ASIC’s Regulatory Guides, and super, his research found ChatGPT’s strategy scored over 95% on compliance, accuracy, clarity, and persuasiveness. 

“I put ChatGPT’s content in a Word document and compared it against four other contribution strategies from four of Australia’s largest licensees,” he explained.

“Then I approached financial advisers, consumers and compliance officers, and I asked them ‘can you tell the difference between the documents?’ When asked if the ChatGPT recommendation had enough information to make a [financial] decision, they all came back with a resounding yes.

“So one hand, we have a super strategy through a normal process, which might cost $800 dollars, and the one with ChatGPT which took about 20 seconds and was free.”

Such implementation could widen the scope for improving financial literacy and regulatory adherence in financial planning, Neilson observed.

“Looking at financial services, I don’t think we should be charging what we’re charging because I don’t really think we’re worth it. 

“If you look at any decent adviser, they know what they’re going to do with you in about 25 seconds but for some reason, it takes weeks to get an SOA document out, and we seem to have to charge for this part in the middle.

“If you look at anyone in my generation, these additional requirements are things we don’t want to do anyway. In a, say, hourly wage model, if you call the office and it’s going to cost you $100 an hour for advice, and I can put this request into ChatGPT, I’m sending you an invoice for some six minutes. So to some extent, this is a win-win because I don’t want to waste my time while clients would get the information they wanted.”


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Submitted by Richard on Tue, 2023-01-17 10:11

Problem is, it can often be confidently incorrect. It doesnt have a human guage on its limitations of knowledge and the implications of getting something incorrect. For example, try and ask it to compare the advantages of an agreed value or indemnity income protection benefit. It confidently claims that you can be paid more under an indemnity policy than the scheduled benefit if your income has increased since policy was taken out.

Submitted by Helen Postle on Tue, 2023-01-17 11:11

I downloaded ChatGPT when I heard about it last year. I asked it to tell me about the Australian Super system and the data was three years out of date. I guess I have to pay if I want up to date info

Submitted by Teneale on Tue, 2023-01-17 12:23

I’ve also been trialling chat gpt and many other AI tools in my business for multiple purposes. It’s a very helpful tool and I believe AI is the way of the future. As the generational wealth transfer continues and clients wanting less traditional interaction with advisers, I believe the opportunity is massive. I’m excited for the year ahead and the advances in the industry this technology will bring

Submitted by Big Fella on Tue, 2023-01-17 12:57

I'm starting to look into using ChatGPT for all aspects of my life - got to stay ahead of the curve

Submitted by Hedware on Tue, 2023-01-17 17:28

Oh Oh this is the thin end of the wedge.

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