One of the biggest worries for advisers in client meetings is the possibility of missing something crucial, whether it’s a vulnerability indicator, a new financial risk or a subtle clue about a client’s needs. This is also particularly important with increased regulation such as the FCA’s Consumer Duty.
For those who want to be fully present with clients while still catching every important detail, this can create a real challenge for wealth managers and advisers. There’s also the worry that AI might eventually replace human judgement in these scenarios — but what if it could simply act as a powerful support?
AI tools can serve as a “second set of eyes” in client meetings, transcribing conversations in real time, flagging essential discussion points and identifying potential risks based on the conversation and the client’s profile. Acting as a ‘machine line of defence’ enabling AI-driven quality assurance automation, at all stages of the QA workflow. This way, advisers can focus entirely on building rapport, knowing that AI is picking up any red flags or actionable points they may otherwise miss.
Advisers must adhere to strict security and regulatory protocols to protect sensitive data, but AI can make this process more efficient
Trust in the human-machine hybrid
One of the key concerns for clients is the security of their personal and financial information. Advisers must adhere to strict security and regulatory protocols to protect sensitive data, but AI can make this process more efficient.
By monitoring account activity in real-time and flagging any suspicious behaviour, AI is providing an extra layer of security against potential fraud or cyber-attacks. This is particularly critical for larger clients who may be targeted by sophisticated cybercriminals. AI’s ability to detect anomalies and prevent breaches ensures that clients’ data is kept secure, building trust and confidence in the adviser’s services.
However, there is scepticism in the marketplace about AI. Unsurprising, perhaps, with a technology that seems to promise such a paradigm shift in working models and life more broadly. And, as often is the case with new technologies, when issues arise these are often highly publicised, which while encouraging caution, can also bring trepidation. This is where it is crucial to consider the solutions that are being adopted. Transparency about data collection, an understanding of the right guard rails being deployed by not only the technology provider, but also in how it is used, is going to be essential and that must be at the forefront when selecting the right AI solutions.
Compliance and peace of mind
AI plays a vital role in ensuring that advisers are compliant with regulatory standards and that their advice meets the highest quality assurance standards. Compliance can be an arduous task. It’s often conducted manually by listening to hours of recordings or reading pages and pages of notes and cross-referencing facts on multiple documents. Not only is this hugely time-consuming, but it also means that a far smaller percentage of calls or interactions typically are able to be assessed – exposing both advisers and their customers to an unnecessary level of risk.
AI tools can scan client files to ensure that all required documentation is present, flagging any missing or incomplete information. These systems can also monitor ongoing transactions and alert advisers to any potential compliance issues. By automating these tasks, rather than relying on manual checks, means that a far larger proportion of advisers can focus more on providing valuable advice to their clients, knowing that compliance is being managed effectively in the background. Increased speed around these pre-execution checks also means that advisers can free up more capacity to bring in more clients and generate more revenue for their firms.
This is an area where bespoke models of AI, specifically trained in financial services and equipped to better assess relevant compliance-based language, can make a significant impact. A generic AI tool, whilst offering some efficiencies, does not offer as comprehensive a compliance assurance and advisers and firms should be cognisant of that from the beginning.
Always be asking questions
But, don’t forget to think before you adopt AI. Plan properly, ask questions, ensure transparent and open discussions before you step in. AI really is there to bring fundamental benefits and reduce risk – not create more.
