‘Like any other tool’: Finding a balanced approached to AI in advice

Appearing on the latest episode of The ifa Show, owner and financial adviser at On Your Own Two Feet, Helen Baker, explained that the introduction of new technologies can trigger a fear of replacement. However, in the case of the advice profession, she noted that technology has instead helped reduce time spent on lower-value tasks.

“I think it’s like any other tool. You look at maybe something like Xero where everybody was like, ‘Well, I’ll never have a job’,” Baker said.

“I think what it does is take care of some of these functions and roles that can be somewhat tedious for some people or using a lot of your time and energy and there’s ways to tweak that up, but it still needs oversight.

“And it’s also imperfection so you’ve always got to know you always gotta keep an eye on it. And I think it’s about using the information that it’s providing rather than just assuming it’s going to do everything for you.”

Baker emphasised that while AI offers many benefits, it’s crucial not to lose sight of the importance of maintaining strong interpersonal relationships with clients, rather than relying solely on technology.

“Fundamentally, I’m a big, big person about face-to-face and catching up with people. When we look at things like scams and these things that are happening, it all gets back to that bit of fundamentally, we are human beings, and ideally, it’s nice to deal with a human where we actually can interact properly and I think COVID taught us all that as well,” she said.

She acknowledged that technological advancements are often met with scepticism and concern, but people typically adapt to the new normal over time. Baker noted that AI has faced a similar response, yet advisers are gradually adjusting, finding ways to make their processes “more efficient and smarter”.

Like all other technology, Baker said: “You can use it for good. You can use it for evil. And I think this is the same kind of thing”.

“There’s an opportunity here. There’s a smart behind some of this, albeit not 100 per cent perfect, so there’s things to work on. But, you know, can it help your business? Or do you want to invest in a company that is doing some of these things?” she said.

Baker also stressed the ethical considerations advisers must take into account when using AI, especially those dealing with highly sensitive client information.

“That also ties in with whether people think that’s ethical, you know, to be using some of these AI tools? And how do they get that information? You know, does it mean that they’re invading your privacy, you know, the surveillance that goes on with all of these things?” she said.

“People are generally, I assume, not going to be sitting in one camp or the other, you know, they might be like the 60–40 portfolio, where they’re 60 per cent for it and 40 per cent against, but I think it’s about moving with the times.”

She added: “So at the end of the day, it is just a tool, but it does give people the opportunity.”

To hear more from Baker, click here.