AI Gaining Traction Among Australian Financial Advisers

0

Within the Australian financial sector, the research indicates that half of the advisers predict AI will significantly improve the quality of financial advice, while 64% expect it to decrease the costs associated with serving clients. Additionally, 62% believe AI will improve accessibility to financial planning services for underserved populations, though there are existing concerns regarding data privacy and cybersecurity, noted by 52% of respondents. Additionally, 32% of Australian advisers express concerns regarding AI's accuracy and reliability.

The Financial Advice Association Australia (FAAA) echoes this sentiment, acknowledging AI's dual role in reducing costs and expanding financial advice to underserved communities. Sarah Abood, CEO of FAAA, emphasizes the sector's need to streamline regulations that may otherwise restrict access to financial advice, which has become more challenging due to complex regulatory demands. "Simplifying regulations will allow advisers to focus on achieving optimal outcomes for clients," she asserts, acknowledging AI's potential to balance administrative challenges with innovative solutions.

This forward-thinking approach is mirrored in New Zealand, where the survey suggests that 73% of advisers foresee AI as a tool to better serve clients, with a majority recognizing its potential to both enhance advisory quality and reduce costs.

As financial advisory firms continue to adopt AI technology, the industry is likely to witness changes that could reshape the landscape, making services more accessible and affordable. While this digital transformation offers promising prospects, it remains vital for stakeholders to address the associated risks to ensure a seamless integration of AI in the financial advisory sector.

Published:Wednesday, 14th May 2025
Source: Paige Estritori

Share this news item:

Finance News

Clear

ASX Hits 11-Week High Amidst US-China Tariff Pause 14 May 2025: Paige Estritori The Australian Securities Exchange (ASX) reached its highest level in 11 weeks, buoyed by the announcement of a temporary pause in tariff increases between the United States and China. The ASX 200 index climbed 35.50 points, or 0.43%, to 8,269, with standout performances from the energy and information technology sectors. Similarly, the All Ordinaries index saw a rise of 43.70 points, or 0.52%, closing at 8,510.70. The Australian dollar also appreciated, gaining 0.71% to 64.16 US cents. - read more

AI Gaining Traction Among Australian Financial Advisers 14 May 2025: Paige Estritori A recent global survey conducted by the Financial Planning Standards Board reveals a growing trend among Australian financial advisers who see artificial intelligence (AI) as a beneficial tool. The study, which includes perspectives from advisers across 24 markets, highlights that approximately 82% of financial advice businesses in Australia are either currently utilizing, piloting, or planning to incorporate AI within the next year to enhance client services. - read more

ASIC Takes Legal Action Against Macquarie Securities Over Misreporting 14 May 2025: Paige Estritori The Australian Securities and Investments Commission (ASIC) has initiated legal proceedings against Macquarie Securities Limited, accusing the company of engaging in misleading conduct related to the misreporting of short sales. This lawsuit, filed in the NSW Supreme Court, points to a significant duration of alleged misreporting that spanned over 14 years, from December 2009 to February 2024. - read more

Wall Street Surges Following US-China Tariff Reduction Agreement 13 May 2025: Paige Estritori In a significant development, Wall Street's three major indices have leapt forward as the S&P 500 reached its highest point since March. This upwards trend follows the announcement of a temporary reduction in tariffs between the United States and China, offering hope for a de-escalation in global trade tensions initiated by US President Donald Trump in April. - read more

Calls Intensify for Swift Financial Advice Reforms in Australia 06 May 2025: Paige Estritori Amid pressing concerns from industry associations, the call for rapid finalization of financial advice reforms in Australia has been amplified. The lack of direction from the Labour government regarding the Compensation Scheme of Last Resort (CSLR) is causing uncertainty in the sector, potentially stalling essential reform work. The impending retirement of Stephen Jones has only added to the speculation surrounding the future of these reforms. - read more