White Paper

Generative AI for Financial Advisors

We conducted a survey to understand how Financial Advisors expect Generative AI to impact their roles, with a focus on their daily activities, technology use, and future expectations.

Download the white paper

#Generative AI
#Financial Services
#Survey

THE FOCUS

Financial advisors' opinion on Generative AI

Reply surveyed Financial Advisors to understand their level of adoption and perspectives on Generative AI. The survey focused on the Italian market, where the wealth management industry is one of the most complex in Europe in terms of distribution models and product range. The panel included advisors from diverse age groups and experience levels in managerial and non-managerial positions, with different client bases representing advisory networks and commercial banks.

Advisors shared their perspectives on using AI in the future, discussing tasks where AI could add value and those they believe should remain under human intelligence. Through this exploration, the study aimed to shed light on how AI might transform advisory processes, increase efficiency, and enhance overall client interactions, thereby gauging the readiness and openness of financial advisors towards adopting AI in their professional practices.

Highlights from the survey

AI for smarter client management

Advisors with larger client bases, particularly those less digitally savvy, may focus proactively on select clients, managing others reactively. Technology, especially AI, could assist by automating certain tasks, enabling Advisors to dedicate more time to active portfolio management. AI tools can carry out large-scale portfolio analyses, prioritise client interactions, and suggest investment ideas based on individual client profiles.

Generative AI streamlining advisor tasks

Generative AI could enhance existing tools, making them more intuitive by communicating in the Financial Advisor's language. Key tasks that could benefit include meeting preparation, optimising daily planning, summarising, translating, and creating educational content from economic and financial updates, as well as automating updates for client documents, tracking support tickets, and handling routine client requests.

AI as a “digital assistant” for advisors

Most Financial Advisors are familiar with generative AI, with a significant number using it for personal productivity, particularly younger Financial Advisors. 92% of respondents believe Generative AI will play a role in their profession in the medium term. Generative AI is largely seen as a “digital assistant,” supporting operational tasks and freeing Advisors to focus on relationship-building.

Custom AI tools for advisory networks

Banks' Relationship Managers generally use tools provided by their employers, while self-employed Advisors working with advisory networks tend to supplement bank tools with private investments. Banks may consider establishing curated digital “stores” for generative AI tools, balancing customisation with usability.

How Generative AI could transform the financial advisor's toolkit

Our discussions with Financial Advisors revealed several practical applications of Generative AI that could provide valuable operational support. A digital assistant, for example, could streamline commercial planning by analysing data from multiple sources to recommend optimal client interactions. In portfolio analysis, Generative AI could enhance existing advisory platforms by summarising complex data into personalised narratives, helping Advisors better engage clients.

Additionally, Generative AI could improve Advisors' confidence in robo-advisory proposals by offering transparent explanations of recommended actions, addressing the “black box effect.” AI could also support Advisors in crafting client communications, summarising key information from financial news and updates, and generating “what-if” simulations during client negotiations, saving time and improving the depth of advice.

Leverage on Reply’s Experience with Financial Advisors

The survey was carried out by e*finance Consulting Reply, a company within the Reply Group that focuses on managerial consulting in the distribution of financial products and services. With over 15 years of experience, the firm has assisted leading entities in the European wealth management sector by designing service models and automated advisory platforms, and guiding Financial Advisory Networks and Private Banks through transformation processes.

e*finance consulting Reply

e*finance consulting Reply specialises in providing management consulting services for financial institutions undergoing digital transformation. The company partners with clients in banking, wealth management, and insurance, assisting them in redefining strategic business models, optimising operational processes, and creating innovative products and services. Leveraging industry knowledge alongside cutting-edge technology, e*finance consulting Reply delivers solutions that enhance customer experiences and improve organisational performance. With a strong focus on innovation, e*finance consulting Reply enables clients to meet the demands of digital evolution, navigate regulatory challenges, and pursue new avenues for growth. Guided by values of creativity, adaptability, and technical expertise, the company consistently delivers impactful outcomes within the financial services sector.