How AI Is Changing the Financial Planning Profession: What Planners Need to Know
Like most industries, the financial planning profession is constantly evolving. Artificial intelligence is one of the biggest factors driving those changes, making it crucial for firms and individual professionals to understand this technology.
There’s no doubt that AI is changing financial planning. We’ve already seen some early adopters of AI technology — Holistiplan, for example — and more solutions will probably appear in the near future. But what does that mean for new planners, career changers, and seasoned financial professionals?
Let’s clear up one of the most common fears: We don’t believe AI will replace financial planners. You don’t have to worry about an AI tool taking your job.
However, that doesn’t mean you should just ignore AI altogether. Instead, it’s vital to understand how AI can save you time and enhance your work. With that knowledge, you can leverage this new technology effectively to improve your daily routine and provide outstanding service to your clients.
Let’s take a look at some of the best benefits of AI and how to incorporate them into your financial planning practice.
AI Can… Help You Dive Deeper
Hannah Moore, CFP® and founder of Amplified Planning, loves using AI to clarify her thoughts. When she has an idea she’s toying with, for a blog, an email, or even an internal discussion about processes, she can use tools like ChatGPT to dive deeper.
Feeding the right prompts into a GPT (Generative Pre-trained Transformer) can help reflect your thoughts, ask clarifying questions, and even identify missing elements or highlight areas that require more context. AI can even help by providing ideas for specific situations, like creating a script to reassure a frustrated client or giving you guidance on how to share “negative” findings in a positive/actionable light.
AI in Financial Planning Can… Simplify Repetitive Tasks
One of the biggest advantages of AI is that it can save time via automation. By allowing AI tools to handle tasks like data entry, scheduling, and file organization, you can save tons of time (and avoid human errors).
There are several AI features already integrated into regular financial planning tools, including Redtail and Wealthbox CRM. These platforms can organize your client information, send them automated reminders, and help you keep track of little details that might otherwise fall through the cracks.
You can even create custom GPTs to manage specific tasks, like summarizing meeting notes and creating action items. Once you have your AI tools set up, use your newly reclaimed time to dive into strategic planning and devote more energy to client interactions.
AI in Financial Planning Can… Improve Client Communication & Engagement
AI helps you make your clients’ lives easier by providing them with educational materials and reliable communication. For example, you could add a chatbot to your website to answer common questions from visitors and direct them to your existing resources.
You can also use AI tools to send personalized communications to individual clients, such as meeting reminders or links to resources that specifically address their unique needs. And while it’s not necessarily AI, you can streamline communication with automated email and calendar platforms, like Kit, Mailchimp, Calendly, and more.
Once you’ve set up AI and “hands-off” tools to handle these recurring communications, you can dedicate more time and energy to deep discussions with your clients.
AI in Financial Planning Can… Support Risk Management
AI also makes it easier to identify risk. Financial planning tools like Morningstar Direct can monitor real-time market trends and compare that data with client portfolios to identify specific opportunities and risks. (Yes, that’s AI!) You can then use this information to guide your clients based on their goals and risk tolerances.
AI in Financial Planning Can… Give You More Time to Learn
Continuing education is essential for financial planners. AI makes that easier by saving time on your daily tasks — and by curating educational resources for you!
For example, CFP Board has an integrated AI tool that offers personalized learning recommendations based on your professional goals. That means you don’t have to spend time searching for specific educational materials, giving you more time to dedicate to professional development.
AI in Financial Planning Can… Deepen Your Connection With Clients
Good financial planning is about more than just technical knowledge and hard numbers. You also need to understand your clients’ goals, challenges, preconceived notions, and values to provide valuable guidance.
With your tech stack handling technical calculations and data analysis tasks, you can spend more time diving into the emotional and psychological aspects of financial planning. Consider learning some new skills to offer financial coaching or to support clients in transition.
Incorporating AI tools into your planning process can help you add more depth and value for your clients. It’s not about using AI tools to do your work for you. Rather, focus on using AI tools to create a solid foundation you can expand upon for your clients.
For example, Hannah once prompted a GPT tool to create a budget template based on a client’s specific financial situation. Once you have that starting point, you can flesh it out with additional guidance and advice. By using AI to build the initial version of this client’s budget, you can save time and provide your client with a comprehensive solution.
As you reclaim time by leveraging AI tools, though, remember to practice active listening, compassion, and other crucial soft skills. You don’t want everything to lose that “human touch,” and you don’t want every piece of your work to be AI-generated!
AI in Financial Planning Can… Improve Your Work
Artificial intelligence tools are powerful additions to your financial planning practice. But AI doesn’t replace your work! Rather, it takes care of time-consuming tasks and provides insights that you can use to build plans for your clients.
Remember, your clients aren’t just looking for facts and numbers. They’re relying on you to take that technical information and translate it into clear, actionable guidance.
The heart of financial planning is your relationship with your clients. You must build a foundation of trust and communication so your clients know they can rely on your advice.
AI can’t build those relationships for you. It can’t discuss a client’s fears with compassion or celebrate their milestones. AI isn’t a replacement for the human aspects you bring to financial planning — it’s just a tool that gives you more time, energy, and resources to draw from as you provide your clients with tailored solutions.
Grow Your Financial Planning Career With Support From AI
We hope, after reading this, you don’t see artificial intelligence as a threat to your career, but rather as a tool that can help you work better! Incorporating the right AI tools into your workflow can help you save time and provide your clients with guidance and support.
But remember, AI can’t do everything for you. There are security and compliance issues to consider — don’t use these tools in a way that could endanger sensitive client data or compromise your ethical requirements. Also know your firm’s AI policy, if they have one!
If you want to enjoy all the benefits that AI has to offer, start by exploring the available AI features inside the tools you already use and learn how they can streamline your workflow.
Once you’ve integrated those AI tools, focus that time and energy you’re saving elsewhere! Work on better communication and other soft skills that help you serve your clients effectively.
And don’t stop learning!
Inside our monthly Amplified Planning CORE subscription, you’ll have access to engaging forums, online courses featuring real-world client scenarios, and monthly learning events designed to help you stay current on everything happening in this profession. If you want to enhance your hands-on skills with professional feedback on your client meeting notes, choose a CORE+ subscription. Get all the details and subscribe today!
