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Book a FREE consultation
and receive your complimentary eBook

Get started with a free strategy consultation and receive a copy of the Good Fortune Guide – written by James McFall, Managing Director Yield™ FP and 2020 National Finalist Certified Financial Planner of the Year to help educate you on your Financial Plan.

Artificial Intelligence and Financial Planning

robot thinking about artificial intelligence and financial planning

As technology improves, research into how artificial intelligence and financial planning can connect is growing. Artificial intelligence (AI) is defined as a system that’s able to demonstrate some of the behaviours which are generally associated with human intelligence, ranging from planning, reasoning and learning through to problem solving.

A 2018 study on AI by the National Business Research Institute revealed that at present, there are 32% of companies involved in financial services who are currently using this technology for everything from predictive analytics through to recommendations, voice recognition and response.


While the introduction of artificial intelligence for financial planning by many leading banks, financial institutions and financial planning firms is believed to be a beneficial advancement for the industry, the general consensus is it won’t replace the human element.

CNBC’s recent article, “Here’s why robo-advisors won’t replace human financial advisors“, identified that while robo advisers will be able to provide retail investors with automated investment strategies, in conjunction with having the capabilities to create portfolios and undertake asset location using clients’ data points, AI won’t be able to account for the more complex areas of financial planning.


Where AI is limited when it comes to providing financial planning services is that it’s incapable of being able to develop an emotional connection or to empathise.

These qualities are intrinsic to building relationships and trust with clients. For example, when a client’s financial situation becomes more complex, such as they want to start a family or invest in their own business, a human financial adviser will empathise with them and assess their priorities, before helping the client make the right changes to their finances to achieve these goals.

Another limitation which has been identified with the introduction of artificial intelligence in financial planning relates to clients’ privacy and security.

Because AI is still a relatively new innovation, in an industry which boasts millions of dollars in investments, there are industry insiders who are worried that cyber-security may not be as far developed as the technology itself, which could result in a higher risk of hacking.

As there are currently no regulations in place between these two technologies, this may result in issues developing further down the track.

Cyber-security isn’t the only risk that’s been identified in relation to AI being used for financial planning, there’s also a concern that the vast amount of fake financial news available online may impact on this technology’s financial decision making capabilities, when it comes to investments.

The risks of cyber-security and fake news in relation to AI systems are covered in more detail by Dow Jones.


Where AI is proving to be an asset in financial planning, is through its ability to streamline the delivery of many financial services, such as compiling and analysing data, through to portfolio and investment management.

AI has also proven to be a useful tool for more basic financial planning needs, for investors who are younger, with less to lose and more simplified financial planning demands.

It’s also been revealed that AI is a good tool to personalise data, as Kasisto has developed an AI platform in the form of virtual assistants called KAI, which are capable of analysing data to answer specific questions asked by clients in relation to their private or commercial financial situation.

KAI is currently being used by companies like MasterCard and Wells Fargo. As this AI interface is very sophisticated, it’s able to mimic human qualities, enabling it to engage in a conversation either by talk or text as you would with another person.

Another area that KAI has proven to be of use in financial services is through fraud detection. Read this article to find out more about KAI and the benefits of AI.

A major benefit of AI with financial planning is its cost-cutting potential. Because AI has the capabilities to process a vast amount of data, while accounting for any additional variables, it’s able to save advisers hours in data analysis. Also, because this innovation is developed through detailed algorithms, it removes any human bias when it comes to investment decisions.


AI in financial planning has proven to be effective in completing the more tedious and boring aspects of a planner’s job, freeing them up to focus on the facets of their role which are more important, such as building client relationships.

By leveraging this type of technology to improve efficiencies in financial planning – by allowing AI access to things like investment portfolios and document vaults – it can analyse vast amounts of data, providing valuable insight for financial advisers when creating investment strategies and managing portfolios.

In conjunction with this, it enables advisers to have more opportunities to improve their communications with clients and provides them with time to contact investors and tailor their services to more effectively accommodate their changing needs.

While AI has been identified to have many benefits when it comes to data analysis and providing insight for creating investment strategy, it doesn’t have the emotional insight to be able to fulfil more complex investment needs. Which is where a financial planning firm like Yield is so valuable.

Yield specialises in all facets of financial planning, ranging from retirement planning, wealth creation and risk management to business planning. Our team of experienced financial planners can assist you with all of your financial planning requirements, no matter how complex, whether you’re wanting to have a family, grow your nest egg or invest in a new business.

We are dedicated to building a long-standing relationship with you so we can successfully deliver a strategy that will enable you to achieve all of your financial and retirement goals.

If your situation is changing or you simply would like to check in about your financial plan, please reach out. We understand that every client’s financial goals and objectives vary and will tailor our services to suit.

About Yield™ - Financial Planner Melbourne

Who we serve – We help time poor professionals and business owners who intuitively know they should be doing more to improve their financial position and are seeking an expert to guide them on financial planning strategies. Our clients want personalised financial planning advice and to feel empowered and confident that they can achieve a secure transition to retirement.

What we do – We gain a deep understanding of your current financial position and preferences, what you value and want to achieve. We then help you develop a highly personalised financial plan, to show you how to make your money work harder for you. Ongoing we regularly monitor and measure progress against your plan projections, to show you how you’re tracking and help you manage change to your advantage.

How we do it – We apply our proven expertise in investment markets (Shares & Property), Tax and Debt structuring, Retirement Planning, Risk management and Estate planning, to help you reorganise the way you use your money to achieve your desired outcomes.

See Our Services See Our Results

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