Artificial intelligence could become the most dominant provider of financial advice by the 2040s, the founder of the Financial Technology Research Centre has claimed.
Ian McKenna said the rapid growth of AI means it could be capable of handling more complex and nuanced financial planning tasks independently in the next two decades.
His comments came after the release of the latest version of Chat GPT.
OpenAI, which produced the technology, said the latest version is a step towards a more natural human-computer interaction.
McKenna said: “In a year and a half generative AI has transformed the way we think about the future. AI is the Spinning Jenny for knowledge workers.
“Financial advisers may be in a better position than other professions like solicitors and accountants, where they have had to be less nuanced in the messages they deliver.
“There is an important personal aspect to delivering financial advice, but all knowledge professions are now under threat for the next decade."
He believes in the 2020s and 2030s the industry will see continued integration of AI in assisting advisers, while in the late 2030s and 2040 there is the potential for AI systems to handle more complex financial planning tasks independently.
He said: “AI could potentially become the dominant source of financial advice, particularly in more straightforward and data-driven aspects of financial planning, while complex and highly personalised advice might still involve human oversight.”
However, for this to happen, McKenna said there would have to be regulatory change and cultural shifts.
He said the adoption of AI-driven financial advice would depend on consumer trust and societal attitudes.
While regulations governing financial advice would need to adapt to accept AI as primary financial advisers, providing the systems were proven to be reliable and ethical.
McKenna added: “Under the assumption of accelerated technological progress, regulatory adaptation, and cultural shifts, the 2040s could see AI becoming the most dominant provider of financial advice. However, this scenario remains speculative and dependent on multiple converging factors.”
tara.o'connor@ft.com
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