AI Adoption Gains Traction Among Financial Advisors, Highlights Opportunities for Enhanced Client Service and Efficiency: Horsesmouth Survey
June 25 2024 - 10:30AM
Business Wire
New research shows 61% of advisors are using AI tools, with
ChatGPT emerging as the clear favorite, but significant room for
growth and education remains.
Financial advisors using artificial intelligence (AI) tools
experience significant time savings and improved efficiency
fleshing out ideas, writing emails, and creating marketing copy, a
new survey by Horsesmouth reveals. But a substantial 38% of
advisors are missing out on these benefits by not using AI at
all.
The survey of more than 400 members of Horsesmouth, a leading
provider of educational resources for financial professionals,
underscores the promising benefits and current challenges
associated with the adoption of generative AI tools in financial
advisory practices.
“While many advisors are beginning to harness the power of AI,
there remains a significant portion who have yet to fully embrace
these tools,” said William T. Nicklin, Chief Executive Officer at
Horsesmouth. “As AI technology continues to evolve, it’s crucial
that we provide the necessary resources and education to help
advisors confidently integrate AI into their practices and unlock
its full potential.”
Nicklin noted that Horsesmouth is launching “The AI-Powered
Financial Advisor,” a four-week virtual training program created by
Sean Bailey, Horsesmouth’s editor in chief, who has spent 2,000
hours researching and developing the program.
Key Finding #1: AI tools offer promising benefits to Financial
Advisors, including content creation, writing improvement, and
productivity
Survey results:
- 56% use AI to convert ideas and outlines into drafts
- 46% use it for email drafts
- 41% use it for marketing copy
- 36% use it to simplify complex topics
Advisor comments: “Best benefit for me is I will write either a
response to a client, or even a white paper on a subject, then ask
ChatGPT to revise it. It does come back with generally a much
better presentation of the idea, thought or concept.” Another
advisor noted: “It creates new ways of expressing an idea that I
wouldn’t have thought of. Excellent for drafting an email, speech
or even generating newsletter ideas.”
Key Finding #2: AI adoption still limited, with many having
little or no experience or consistent use
Survey results:
- 12% are daily users, with 9% using it multiple times per
day
- 35% are not using AI at all
- 53% are barely using it (a few times per month or less)
One advisor commented, “At this point, we have only implemented
AI tools to a minimal degree. We are very open to seeing guidelines
and instructions for much more specific and business-centric uses
and to improve our service model for our clients.” Others expressed
similar sentiments, with one stating, “I have not used it for
business yet. I am unsure of how to implement it and cautious of
the regulations that may be involved.”
Key Finding #3: A confidence gap in AI proficiency exists, and
concerns about accuracy, reliability, and compliance persist
Survey results:
- Only 34% feel confident in their ability to use AI
effectively
- 29% don’t feel confident in their AI skills
- Usage for key practice management tasks such as training,
policies, hiring and HR were in single digits
Advisor comments: “The tool is still being refined. I do
experience hallucinations from time to time. It suggested the
titles of several books that have never been written.” Another
advisor observed: “Lack of AI education and the compliance
requirements around it” as a significant challenge.
Bailey said it is clear financial advisors want to enhance their
practices through AI. “The survey results underscore the
transformative potential of AI for financial advisors, but also
highlight the need for ongoing education and support. Horsesmouth
remains committed to providing the resources and training necessary
to help advisors successfully integrate AI into their practices.
That’s our stock in trade.”
He said the four-week training program, “The AI-Powered
Financial Advisor,” is designed to empower advisors to effectively
integrate AI tools, such as ChatGPT and Claude, into their daily
workflows, enabling them to optimize client engagement, streamline
marketing efforts, and boost overall efficiency. The program is
tailored specifically for financial advisors, ensuring they gain
the knowledge and skills needed to thrive in an AI-driven industry
and stay ahead of the competition. “It’s all about teaching advisor
actionable insights that they can start using right away.”
For more information on the AI usage survey and to access
additional resources, visit horsesmouth.com.
About Horsesmouth
Horsesmouth helps financial professionals educate their clients
and grow their businesses. The company serves financial advisors,
planners, agents, accountants, and other professionals, providing
extensive primary research and two decades of experience at the
nexus of financial education, marketing, and technology.
Horsesmouth is headquartered in midtown Manhattan.
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Melissa Daniel Horsesmouth (212) 217-1131
melissa@horsesmouth.com