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The impact of artificial intelligence (AI) on the world as we know it is hotly debated. Should we fear all-powerful tech coming sooner than we think, or will AI create the space for better, more creative, happier lives without the busywork? In health and medicine, AI can be used to support diagnosis or detect early warning signs of disease. Yet concerns are also being raised about the use of AI in therapy, where there is no human involvement. Research from PwC, the British Academy, and the Royal Society estimates that 10-30 per cent of jobs can be automated, boosting productivity and creating new, “high value” jobs in the UK economy. Among the financial advice firms that use AI, we hear it is mainly being used as a business tool – for example, generating notes from client meetings, or helping with writing reports which explain an adviser’s financial recommendations. One interesting recent development is the creation of an AI “digital adviser”. Known as Aida, it has been developed and built by financial technology company Money Means. Trained using real-world financial planning experience and expertise.In September, Aida achieved a significant milestone, passing a set of exams advisers take to become qualified. And not just a pass – Aida outperformed the average human pass rate across six different exams. Aida has been specifically developed as a way of delivering financial advice to more people. Money Means founder Helena Wardle, an experienced chartered financial planner, recently told trade publication FT Adviser: “Aida won’t work exactly like an adviser, but this is the modern way of providing financial advice”. The emphasis here is not on tech that can serve up technical, financial information, but tech that takes into account nuance, is well trained and feels like a natural conversation. Yet, as Wardle readily admits, not all AI is created equal. In advisers’ own experiments, some of the responses to financial questions from general AI systems have been worrying – the answers are wrong, but delivered with authority. For people trying to learn about their finances for the first time, this is a dangerous combination. Samantha Gratton, a chartered financial planner with Ellis Davies Financial Planning, recently shared her experience, where ChatGPT confidently gave the wrong answer related to tax rules for a high earner paying into her pension. She says: “Tech is fantastic –but peace of mind comes from having a friendly human who knows you, checks the numbers and puts your interests first.” Tech billionaires and experts disagree among themselves about whether we’re hurtling towards a time when AI will match or even surpass human intelligence, or whether this is all hype. but, in finance, AI is already making a meaningful difference to financial advisers and their clients. If developments such as Aida succeed in getting support to more people, it will be a win. But having someone in your corner helping you make informed financial decisions – whether in person or via technology – remains valuable. https://thelangcat.co.uk
