Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor
An electrified brain diagram

Technology > Artificial Intelligence

Advisor Interest Rising in ChatGPT

By Jeff Berman

X
Your article was successfully shared with the contacts you provided.

Interest in ChatGPT and other forms of artificial intelligence is growing rapidly among financial advisors, according to data collected by SmartAsset and included in a new report by the company.

The news comes as financial services firms have started implementing AI tech.

Orion Advisor Solutions, for example, recently launched ChatGPT-3.5 series integration with Redtail Speak, the real-time communication platform for advisors offered through Redtail Technology, the client relationship management software firm that Orion acquired last year.

Fifty-seven percent of advisors are already using some version of AI technology or are at least interested in experimenting with ChatGPT or other generative AI tech, according to SmartAsset, which is a subsidiary of Financial Insight Technology.

In a recent survey conducted March 29-April 12, SmartAsset asked 100 advisors on its SmartAdvisor matching platform about their use of AI.

When asked if they were currently using generative AI such as ChatGPT in any aspect of their advisory practices, 27% of respondents replied they were using or testing it out in some capacity.

Meanwhile, 30% of respondents said they hadn’t used ChatGPT yet but wanted to test it out, SmartAsset said.

The Holdouts

In stark contrast, 43% of respondents answered they were not using ChatGPT or other AI and had no plans to, according to SmartAsset.

When asked, as a follow-up, why they weren’t using AI, 38% of respondents answered they were not comfortable with the technology.

Another 26% of respondents answered that AI wasn’t permitted by their firm’s compliance or management. In addition, 23% of respondents said they had privacy concerns with ChatGPT and other AI.

Although AI chatbots have the ability to interface with clients and prospects while analyzing data and drafting memos, “many financial professionals are balancing their interest in this new technology with concern and wariness,” the report pointed out.

How Advisors Are Using ChatGPT

Advisors who used ChatGPT in their practices were asked how they were using it. Among those responding, 44% answered they used ChatGPT for writing educational blog content about finance topics.

Meanwhile, 28% of respondents reported using ChatGPT to follow up on leads with prospects and another 28% answered they used it for routine communications and scheduling.

Among “other” reasons, advisors answered they used ChatGPT to see how it responded to certain finance topics or asked it questions about marketing, according to SmartAsset.

The Future of AI and Advising

AI is generating interest in the financial advising community for its potential to streamline certain marketing, outreach and “data-crunching tasks,” the report said.

The “greatest impact” of AI for customers will be seen in financial advisory services, Arthur Weissman, co-founder of the firm Industry FinTech, told SmartAsset earlier this year. “(It) will yield an improved customer experience, a lowering of overhead costs and (provide) greater access to more options for investors.”

Generative AI could someday also “create new opportunities for advisors to serve clients and grow their client base,” according to SmartAsset. “It may even be able to crunch reams of data and offer tailored portfolios and financial plans to disparate clientele. But advisors who intend to use AI as part of their advisory business will need to be disciplined in understanding the technological and compliance-specific limits of this technology as well.”

Credit: Adobe Stock

Jeff Berman

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.