While the onslaught of artificial intelligence (AI), especially ChatGPT, proved to be a sudden and bumpy transition, financial advisors – among many other industries – eagerly began trying to adapt the technology to their practices. The AI chatbot has the ability to interface with customers and prospects while analyzing data and writing memos. Yet many finance professionals balance their interest in this new technology with concern and distrust.
In a survey of 100 financial advisors who participate in SmartAsset’s SmartAdvisor matching platform, approximately 60% said they use or want to test generative AI such as ChatGPT – and they told us how they use it currently or planning to use it.
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57% of advisors already use or want to test ChatGPT
When asked, “Do you currently use generative artificial intelligence (AI) such as ChatGPT in any aspect of your consulting practice?” 27% of respondents said they used or tested it in some way. Additionally, 30% of respondents said they had not used ChatGPT but wanted to try it out.
In contrast, 43% of respondents said they don’t use AI like ChatGPT and don’t plan to.
When asked as a follow-up, “If you don’t use AI or ChatGPT, why not?” 38% of respondents answered that they were not comfortable with technology. 26% of respondents answered that AI is not allowed by compliance or management. Additionally, 23% of survey respondents said they had privacy issues with AI or ChatGPT.
How advisors are using ChatGPT in their practices
For advisors who use ChatGPT in their practices, they were asked: “If you use ChatGPT, how do you use it?” Of those who responded, 44% said they use ChatGPT to write educational blog content on financial topics. Additionally, 28% of respondents said they use ChatGPT to follow up leads with leads. And a further 28% said they use it for routine communications and planning.
Among the “other” reasons, advisors responded that they use ChatGPT to see how it answers certain financial topics or ask ChatGPT questions about marketing.
The future of AI and financial advice
AI is attracting interest from the financial advisor community for its potential to streamline certain marketing, outreach and data processing tasks.
“Perhaps the greatest impact (of AI) for clients will be felt in financial advisory services,” Arthur Weissman, co-founder of the company Industry FinTech, told SmartAsset earlier this year. “(It) will bring an improved customer experience, lower overhead and (provide) better access to more options for investors.”
Generative AI could one day create new opportunities for advisors to serve clients and expand their customer base. It may even be able to process tons of data and deliver tailored portfolios and financial plans to a disparate clientele. But advisers who intend to use AI in their advising business will also need to exercise the discipline to understand the technological and compliance-specific limitations of that technology.
In a survey of 100 financial advisors who participate in SmartAsset’s SmartAdvisor matching platform, the majority of respondents said they use or test generative AI such as ChatGPT. Counselors use it for tasks such as writing educational content.
The survey data for this report was collected by SmartAsset through SmartAdvisor between March 29, 2023 and April 12, 2023, and includes responses from up to 100 financial advisors.
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