The session begins by Kitces suggesting a scenario where a person uses a smartphone to summon a driverless car, highlighting the excitement and fear associated with such technology. It discusses the AI trust gap, where the public holds technology to higher standards than human operators, especially in high-stakes scenarios like driving. The analogy extends to financial advisory services, emphasising the innate trust in human advisers despite their imperfections.

Concerns about the integration of AI in financial services focus on accuracy and the regualtory implications of tech-driven advice. The conversation explores successful AI implementations in operational efficiencies, particularly in meeting notes and client relationship management, where AI can significantly reduce workload while maintaining human touch.

The discussion then touches on the complexities around regulatory compliance when using AI and recording client interactions. It proceeds to analyse AI’s role in marketing and client prospecting, noting its potential to identify warm leads and streamline marketing communications.

Finally, it contrasts the varying needs and challenges of small vs. large financial advisory firms regarding AI adoption, stressing the importance of using AI to enhance, rather than replace, human judgment in giving financial advice.

Watch parts of the session here: