Interest is growing among financial advisors in the use of artificial intelligence (AI), specifically ChatGPT, but many questions about the new technology remain.
The AI chatbot's capabilities include the ability to interface with clients and prospects while analyzing data and drafting memos. To get a better sense of where the advisor community stands, SmartAsset conducted a survey of 100 financial advisors who participate in the firm’s SmartAdvisor matching platform and reports that 57% said they are using or are interested in testing out generative AI such as ChatGPT.
A deeper look at the findings, however, reveals a more nuanced stance, as many financial professionals are balancing their interest in this new technology with concern and wariness.
When asked, “Are you currently using generative artificial intelligence (AI) such as ChatGPT in any aspect of your advisory practice?” 27% of respondents replied that they are using or testing it out in some capacity. In addition, 30% of respondents said they haven’t used ChatGPT but want to test it out.
In contrast, 43% of respondents answered that they are not using AI such as ChatGPT and don't plan to, according to the findings.
- Using it a lot (5%)
- Using it a little (9%)
- Have tested it out but not using it with clients and prospects (13%)
- Not using it but want to test it out (30%)
- Not using it and don’t plan to (43%)
When asked as a follow-up, “If you are not using AI or ChatGPT, why not?” nearly 4 in 10 of those respondents (38%) answered that they are not comfortable with the technology. Another 26% responded that AI isn't permitted by compliance or management. What’s more, 23% of respondents said they have privacy concerns with AI or ChatGPT.
- Not comfortable with the technology (38%)
- Not permitted to by compliance or management (27%)
- Privacy and security concerns (23%)
- It hadn’t occurred to me to use AI tools in my practice (22%)
- It doesn’t perform the tasks I need it to (8%)
- Other (10%)
Advisors Who Use ChatGPT
The survey similarly asked advisors who use ChatGPT in their practices how they are using it.
Among those responding, 44% answered that they use ChatGPT for writing educational blog content about finance topics. Additionally, 28% reported using ChatGPT to follow up on leads with prospects. And another 28% answered that they use it for routine communications and scheduling.
- Writing educational blog content about finance topics (44%)
- Following up on leads with prospects (28%)
- Routine communications and scheduling (28%)
- Communicating market updates to clients (16%)
- Communicating market updates to prospects (16%)
- Other (24%)
Among "other" reasons, advisors answered they use ChatGPT to see how it responded to certain finance topics or ask ChatGPT questions about marketing.
The Future of AI
Overall, generative AI may one day create new opportunities for advisors to serve clients and grow their client base, explains Wola Odeniran, personal finance expert with SmartAsset. “It may even be able to crunch reams of data and offer tailored portfolios and financial plans to disparate clientele,” he writes. “But advisors who intend to use AI as part of their advisory business will need to be disciplined in understanding the technological and compliance-specific limits of this technology as well.”
The survey data was collected by SmartAsset through SmartAdvisor between March 29–April 12, 2023, and includes the responses of 100 financial advisors.
