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MoneyWeek article - Pros and cons of AI in financial services

Journalist: Marc Shoffman, Freelance

ended 05. February 2025

Hi,

The Treasury Committee has launched an inquiry into how AI is used in financial services such as banking, pensions, investments etc

https://committees.parliament.uk/committee/158/treasury-committee/news/205090/use-of-ai-in-banking-pensions-and-other-financial-services-to-be-subject-of-new-inquiry-by-mps/

I am after views on whether AI is helping/hindering consumers? What are the pros and cons of AI in financial services, can it help provide financial advice? Does it make customer service more frustrating for the consumer? Is further regulation needed? 

Kind regards

Marc

3 responses from the Newspage community

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Ben Perks
Managing Director at Orchard Financial Advisers
There is no escaping it, AI is coming. I'm a firm believer that AI & Tech will have a positive impact on Financial Services as long as the advice element remains human. By utilising AI and Tech you can streamline services and remove some of the barriers that prevent people getting advice. But Robo-Advice is not the way forward, there needs to be a person to build rapport with, someone with compassion and care and 'outside the box' thinking to help guide clients through their financial objectives.
A review of how AI is used in financial services is definitely needed and if they get it right, there could be some great opportunities for businesses and clients alike.
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Daniel Wiltshire
Actuary & IFA at Wiltshire Wealth
Whilst AI can be incredibly helpful for backoffice tasks and research, it's important that AI never comes between the adviser and the client. Probably the most under-rated skill of a decent adviser is empathy. Tone and context matter a lot. This is people's life savings and retirements we're talking about - you can't just hook them up to an algorithm and expect good outcomes.
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Joshua Gerstler
Chartered Financial Planner & Wealth Manager at The Orchard Practice
AI can be great for financial services. However, people should not rely on it solely. AI cannot understand your fears and concerns, your dreams and goals, like a human can. It cannot tell when you say one thing and mean something else. There are many positives about AI in financial services but there is a long way to go.