In a recent article, we explored the potential of artificial intelligence (AI) to transform advice businesses. As the AI landscape continues to evolve at a rapid pace, it’s essential for advisers to stay informed and adapt to these changes. This article aims to provide practical guidance on navigating the AI rush, building on the themes of unlocking AI’s power while prioritising the needs of advisers and their clients.
The AI Landscape
The use of AI tools has skyrocketed in recent months, with ChatGPT alone attracting over 100 million users within just two months of its launch. But ChatGPT is just one of many AI tools available to advisers. From Google Bard to Anthropic’s Claude, there’s a growing array of language models to choose from, with more on the way.
In addition to these foundational models, there are also numerous bespoke tools that leverage AI services for specific tasks. These include transcription tools for summarising meetings, image generators for creating engaging social media content, and much more. Even common tools like Canva are introducing AI capabilities for content and image creation, while Microsoft’s Copilot aims to streamline tasks in your work ecosystem (although our experience suggests there’s a bit of work to do to make sure it’s actual useful!).
Benefits of AI for Advisers
One of the key benefits of AI is its ability to save time and effort on routine tasks. AI can summarise meeting notes and research, freeing up more time for client interactions. It can also help create eye-catching images for your LinkedIn posts and other social media content, making it easier to build an online presence and connect with clients.
When it comes to writing and editing, AI tools can assist with drafting client reports, newsletters, and other communications. By leveraging AI, advisers can create high-quality content more efficiently, while still maintaining their unique voice and perspective.
Importantly, our recent adviser research showed that 58% of practices find the cost of doing business a key hurdle for risk advice. By harnessing the efficiencies offered by AI, advisers may be able to alleviate some of these cost pressures and focus on delivering value to their clients.
The impact of AI is already being felt across various industries. In the legal sector, a recent survey found that “2 in 3 Australian lawyers are using ChatGPT for legal work.” As AI continues to advance, its potential applications in the advisory industry are likely to expand as well.
Risks and Challenges
While the benefits of AI are significant, it’s important to be aware of the risks and challenges involved. Data security and privacy are key concerns when using AI tools. It’s crucial to understand where data is being stored and who has access to it, and to look for tools with robust security measures and clear privacy policies. For example, ChatGPT offers a paid version that allows users to keep their data private.
Another risk is the potential for biased or inaccurate outputs. AI models are only as good as the data they’re trained on, and they can sometimes produce results that are skewed or misleading. Advisers must verify and fact-check any AI-generated content before using it with clients.
Principles for Safe and Effective AI Use
To navigate the AI rush successfully, consider adopting some key principles:
- Experiment with different tools to find what works best for your practice. Different tools may perform better for specific tasks; for instance, we’ve found that Anthropic’s latest Claude model generally does a better job at writing than ChatGPT, although both can benefit from some training.
- Prioritise data security and privacy, but don’t let it hold you back from exploring AI’s potential benefits.
- Use AI to supplement your expertise, not replace it. Maintain human oversight and apply your professional judgment to all AI-generated content.
- Stay up-to-date on AI developments and best practices, and be prepared to adapt as the technology evolves.
Government Initiatives and Guidance
Governments around the world are taking steps to regulate and support the development of AI. In the UK, a proposed AI Bill that aims to encourage the responsible development and use of AI technologies is currently making its way through Parliament. Here in Australia, the National AI Centre is playing a key role in providing guidance and support to businesses looking to adopt AI responsibly.
Embracing AI Responsibly
Advisers have an opportunity to embrace AI and use it to enhance their practice. By starting small, prioritising security and privacy, and maintaining human oversight, they can harness the power of AI while still providing the personalised, expert advice their clients rely on.
The future of AI in the advisory industry is bright, but it’s up to the industry to shape it in a way that benefits both advisers and clients. By staying informed and adopting AI responsibly, advisers can position themselves for success in the years ahead, just as they have risen to the challenges of providing risk advice in the challenging enviroment we’re in. Ultimately, the goal is to make life easier for advisers and their clients, and AI can play a significant role in achieving that objective.
On a lighter note, at Risk Hub, we’re working on a number of tools to leverage AI – as well as using them ourselves. More on this is coming very soon, so stay tuned!
The Risk Hub Team
Sources: https://www.lawyersweekly.com.au/biglaw/39363-2-3-australian-lawyers-are-using-chatgpt-for-legal-work, https://www.skillademia.com/statistics/chatgpt-statistics/