While some look at AI’s rising power and profile and brace for the worst, the next generation of financial advisors seems willing to welcome the technology with open arms.
A report released this week by Weston, Massachusetts-based fintech firm Advisor360° found that many younger advisors believe generative AI tools like ChatGPT are poised to do more good than harm when fully unleashed upon the wealth business.
For example, 64% of the advisors polled in the firm’s second annual Connected Wealth Report call generative AI “a help” to their practice, while 57% believe it is a benefit to the industry. The report’s findings stem from a survey of 300 financial advisors, aged 36.5 years old on average, managing an average of $40 million in client assets, according to Advisor360°.
“To some extent, humans have always feared being displaced by technology. The so-called lump of labor fallacy has been well documented — yet there are more jobs today than ever in human existence,” Advisor360° President Darren Tedesco wrote in the reporter’s introduction. “Yes, jobs will shift over time based on advancements like AI, but new ones will be created. I think of the job market as a pie that is not a fixed size.
“AI will help grow the pie, not shrink it. Based on the results of our survey, many advisors agree with that assessment,” he said.
The survey, led by Coleman Parkes Research on behalf of Advisor360°, was conducted in September and October 2023 among financial advisors and other executives at firms with approximately $9 billion in assets under management and more than 1,000 employees on average.
Here’s a quick look at the key findings of the 2023 Advisor360° Connected Wealth Report.