Data privacy and accuracy top AI fears

A snapshot of AI use by financial planners globally has found more than half are using it in their businesses despite sharing some of the common concerns with other professions about the rapid technological shift.

The initial results of a survey by the Financial Planning Standards Board of more than 6000 individual practitioners in finance across 24 territories were presented at the Financial Advice New Zealand annual conference earlier this month.

The research found 54% of respondents are either using or piloting AI in their business, with 10% planning to in the next 12 months, and 35% with no plans at all to use AI. However, most respondents believe AI will allow them to deliver better service to their clients, with potential uses likely to be in collecting client information, analysing data and developing recommendations.

The top concerns for financial planners are the same as those felt in other sectors, with 47% worried about data privacy and cybersecurity and 42% worried about accuracy and reliability of outputs.