While the imagination can create all manner of threats , the short- to medium-term applications of AI appear to be hugely positive . It will drive much greater efficiency as it should deal comfortably with many basic and tedious tasks , and potentially even streamline some initial conversations to triage new business .

This offers a great opportunity to help to close the advice gap . The greater the quality and power of AI , the greater the range of choice a hybrid advice model can offer . Low net worth clients could be onboarded using the AI advice stream because that will be lower cost for the business and , as they ( in theory ) become higher net worth , they can progress to the gold standard face-to-face traditional model . It ’ s unlikely AI could threaten financial planning in the medium term , but it can plug the gaps that advisers are currently unable to fill profitably , and potentially allow more tailored and personalised products and planning tools that make cashflow modellers look like VCRs .

In protection , the possibilities for AI to solve underwriting delays and efficiencies are significant . Technology already exists to give an indicative quote from a range of providers , based on whether the case would be loaded or declined , or have an exclusion added . AI can make this process even swifter . Maybe we could get to a point where all cases receive an instant decision because the providers ’ AI can access and read medical records securely and a decision rendered in a few seconds .

Underwriters would build the decision framework that the AI operates within , but the actual legwork would be done by AI . By deploying underwriting decisions in seconds , not days or even weeks , we could build a market which functions in line with the expectations and demands of today ’ s consumers . A buying process which inspires trust and stimulates more demand from advisers .

I was tempted to ask Chat GPT if AI will go rogue like in Terminator or 2001 . As with all technology gains , it ’ s hard to predict the future , along with the winners and losers from the next fundamental tech shift . This will inevitably attract a new tranche of FCA regulation too as the sector readjusts to the changing landscape , but in financial advice the possibilities are exciting .

To finish , I would like to quote Joe Procopio , Founder , Teachingstartup . com , who advises us that to succeed in the future we have “ the need for suboptimal humans like you and me to change our skillset from ‘ knowledge worker ’ to ‘ knowledgeable worker ’” 1 .

SolutionBuilder from iPipeline is available to our Members and Clients at a greatly discounted rate . Visit the SimplyProtect section of our websites for more details .

1 https :// www . inc . com / joe-procopio / this-is-most-important-skill-yourcompany-needs-in-new-world-of-ai . html

| PROTECTION ADVISER | AUTUMN 2023 | 27