Quick insights:
- Advice firms are grappling with how to assess and adopt Artificial Intelligence (AI) effectively, with many unsure whether to build internal expertise or rely on external support.
- Advisers are actively driving AI exploration, pushing licensees and tech teams to evaluate new tools, particularly those that improve efficiency, like templated file note solutions.
- HUB24 is emerging as a key support partner in the advice industry’s AI journey, offering guidance and sharing its experience to help others assess solutions based on transparency, consistency, and sustainability.
Assessing AI solutions is challenging due to its fast, changing nature and the lack of deep and accessible expertise in this emerging area.
Advice practices and licensees are wrestling with the same challenge: how to approach AI effectively and whether they need to fill internal knowledge gaps by hiring new expertise.
Fitzpatricks Advice Partners General Manager of Advice, Jasia Fabig said it has a cyber policy and is in the process of drafting an AI policy but is unsure what other work it should be doing. “We have various checks and balances established, but it raises the question of if its necessary to have an AI expert in your business.”
Advisers driving AI requests
As the advice industry experiments more with AI solutions, Centrepoint Alliance’s (CPAL) advice tech team has shifted its focus from assessing core financial planning software such as Xplan and adviser modules, to consider the whole ecosystem of advice technology solutions, including AI.
Head of Advice Technology Henry Cai said that a significant portion of surveyed advisers are not currently using AI, but those curious about it can share ideas through a Think Tank forum where technology suggestions are assessed.
“More often, it’s advisers putting ideas forward and saying, ‘We’ve heard of this platform or provider, can you have a look at it?’”.
What to look for when weighing up AI
The assessment of AI capabilities typically covers cyber security, basic due diligence and whether data is kept domestically or overseas. In the case of CPAL, if the solution is suitable, it will partner with the provider and release it to its advisers.
Once such solution the business has embraced is templated prompting to deliver efficient, real time adviser file notes.
“We are just trying to get them 1% closer to the leaders on the top,” said Cai.
According to Dr Evan Morrison, Head of HUB24’s Innovation Lab, the key to evaluating AI solutions lies in its ability to follow instructions and generate consistent outputs.
“We’re looking for repeatable and specific answers,” he said. To date, the Innovation Lab has investigated over 50 models and considers their transparency, reliability, energy efficiency and carbon footprint.
HUB24 is increasingly being approached by advisers and licensees seeking guidance on how to navigate AI.
“Advisers and licensees ask us for a copy of our AI policy, and we support them by sharing our experiences and insights to take a collaborative approach,” said Morrison.