Within the Australian financial sector, the research indicates that half of the advisers predict AI will significantly improve the quality of financial advice, while 64% expect it to decrease the costs associated with serving clients. Additionally, 62% believe AI will improve accessibility to financial planning services for underserved populations, though there are existing concerns regarding data privacy and cybersecurity, noted by 52% of respondents. Additionally, 32% of Australian advisers express concerns regarding AI's accuracy and reliability.
The Financial Advice Association Australia (FAAA) echoes this sentiment, acknowledging AI's dual role in reducing costs and expanding financial advice to underserved communities. Sarah Abood, CEO of FAAA, emphasizes the sector's need to streamline regulations that may otherwise restrict access to financial advice, which has become more challenging due to complex regulatory demands. "Simplifying regulations will allow advisers to focus on achieving optimal outcomes for clients," she asserts, acknowledging AI's potential to balance administrative challenges with innovative solutions.
This forward-thinking approach is mirrored in New Zealand, where the survey suggests that 73% of advisers foresee AI as a tool to better serve clients, with a majority recognizing its potential to both enhance advisory quality and reduce costs.
As financial advisory firms continue to adopt AI technology, the industry is likely to witness changes that could reshape the landscape, making services more accessible and affordable. While this digital transformation offers promising prospects, it remains vital for stakeholders to address the associated risks to ensure a seamless integration of AI in the financial advisory sector.
