The value of a human Adviser in a Robo-advice world

Having listened to this TED Talk Daily podcast by tech journo Kevin Roose recently it was a timely reminder that an automated future is inevitable. I remember a few years back as Roboadvice was becoming a top buzzword in our industry. At the time I began to strategise ways that I could use this new AI technology to my advantage so rather than “lose” out to such technology. I think I was missing the point.

What I understand now is that while AI Advice and technological intervention into the advice process will undoubtedly change our industry, I firmly believe it will enable us as Advisers to better help our clients because we can focus more on the humanity of advice.  The onset of robotics in the automotive industry is a great example. In the early days of automotive production where the process was largely manual, development of new and exciting features, enhancing design and pushing the envelope were not really present in mainstream car manufacturing.

“human connection, understanding and empathy for behaviour is something we need to foster as Real Advisers”

However once the process that could be automated via robotics was adopted industry wide we began to see mainstream car manufacturers push the envelope of design and features began to accelerate at a remarkable pace. In a very short time cars went from a mode of transport with boring box shapes, to entertainment hubs that can accelerate and stop in break neck speed and navigate for us. The car manufacturers used the benefit of robotic production to their advantage, allowing them to deploy skills in design and engineering instead of manufacturing and fabrication. This enabled them to connect with drivers and create something that supported humanity.

This same approach would serve our industry well, detailed advice documents, complex financial models and smart asset allocations are something we need to manufacture using AI, but human connection, understanding and empathy for behaviour is something we need to foster as Real Advisers.