A recent report indicates a significant underutilization of artificial intelligence (AI) among independent financial advisers (IFAs) in Ireland, with only 6% currently employing AI tools for client services. Despite this low adoption rate, a notable portion of IFAs perceive AI as a potential opportunity for their businesses, though opinions remain divided on its overall impact on the industry.
The Current AI Landscape for IFAs
New research conducted by Opinium reveals that a mere 6% of independent financial advisers are actively using AI tools in their client service offerings. This finding highlights a considerable gap between the potential of AI and its current integration within the Irish financial advisory sector.
Adviser Perceptions of AI
Despite the low adoption, the study found that nearly half (49%) of IFAs believe AI presents an opportunity for their businesses. A further 27% anticipate a positive impact. However, a more cautious sentiment is also evident, with 32% viewing AI as a risk and 23% predicting a negative effect on the financial advice industry as a whole.
Expert Views on AI Integration
Alexa Nightingale, Opinium’s global head of financial services research, stressed the importance of IFAs becoming comfortable with AI technology. "It’s clear that advisers have mixed feelings about the rise of AI and the impact it could have on the industry and their businesses – but given it is unlikely artificial intelligence is going anywhere, it’s key that advisers get on board," she stated.
Daniel Williams, director of the Personal Finance Society, echoed this sentiment, urging financial professionals to "get ahead of the AI curve." He noted that while AI is still in its early stages, firms should actively engage with AI developers. Williams, who is himself an IFA and part of the 6% using AI, shared his daily use of AI tools for tasks such as summarising meetings, improving email readability by adjusting reading age and reducing jargon, and generating comparison tables and client literature.
Key Takeaways
- Only 6% of Irish IFAs currently use AI for client services.
- Nearly half of IFAs see AI as a business opportunity.
- A significant portion of advisers express concerns about AI’s potential risks and negative impacts.
- Experts urge IFAs to embrace AI technology to stay competitive.
The Opinium research surveyed 200 financial advisers online between July 3rd and July 12th.
Sources
- Only 6% of IFAs use AI to deliver services to clients, says report, Money Marketing.
