Client relationships still advisors’ top priority

Artificial intelligence has become a fixture in the practices of many financial advisors. Yet despite the usefulness of the advancing technology, advisors are adamant the human connection remains at the heart of their work.

Financial Planning’s recent AI Readiness Survey, which polled 250 advisors, revealed distinct trends in how advisors are implementing and perceiving artificial intelligence in wealth management. 

The survey results highlight the tension between technology and human touch: Advisors ranked soft skills above technical prowess when identifying the talents needed to thrive today. Most said the top skills for success are those that revolve around building and maintaining client relationships (58%) and having in-person interpersonal skills (43%). 

Even with all the new AI tools embedded or standing alone in tech stacks, advisors say there is still room for improvement when it comes to enabling the human connection at the center of their businesses. The tools advisors most wish they had include those to help with “client communications and management” (23%) and workflow management (19%). 

Given that good client relationships are the foundation successful practices are built on, it makes sense that advisors’ greatest fears regarding AI revolve around anything that could damage that bond with clients, including loss of trust through data mismanagement or unhelpful third parties.

The biggest risks to the industry from AI, as advisors see it, are the “risk of errors or unintended consequences” (67%), the “loss of personal touch with clients” (56%) and “data security concerns” (55%).

Unsurprisingly,  advisors see proficiency in AI and other tools as a crucial skill to have as the technology continues to advance, with 83% saying it would be much or somewhat more important in the coming years. As to a skill that may be heading toward obsolescence, 22% of advisors said “written communication skills” would become somewhat or much less important.

Driving home the importance of keeping clients happy, the survey showed that the No. 1 priority behind firms’  technology strategy is “improving client experience and satisfaction,” with nearly two-thirds of advisors citing it as the top focus.

Scroll down to read about other key findings from the AI Readiness Survey: