Bhatnagar explains that AI’s greatest utility as a tool for financial advisors and their clients lies in its ability to digest, analyze, and synthesize large amounts of complex information into easily digestible units. The shift from manual research to instant insights is already happening and is widely available through many AI tools. But what’s next is an AI assistant for your financial life.
Bhatnagar sees three categories of new AI tools being rolled out. The first comes from large banks and other financial institutions that leverage a wealth of customer and market data. These tools may be slow to emerge as large institutions are tied to legacy systems, but they also come with trusted brand associations. The second category of tools Bhatnagar considers comes from digital “disruptors.” Players with no legacy and little established foothold in the market can move quickly to fill emerging niches. The final category comes from “vibecoders,” the myriad of ordinary people who use AI to build apps and programs that can aid in their daily lives.
As much as these tools continue to be built and deployed, Canadians’ openness to AI does not imply an innate trust in everything it produces. 78% of respondents want to approve each action taken by an AI assistant. Bhatnagar believes that modern trust in AI stems from the intent behind its use and the user’s perspective. More established individuals with lower risk tolerance may trust some of the research provided by AI, but there are caveats. Individuals who have less to lose or who are focused on the potential for gain may be more willing to trust AI advice when seeking an advantage in the market.
Because of the inherent dynamics of openness to AI assistance, preference for human control, and differentiated trust, Bhatnagar does not see AI tools as an inherent threat to advisors’ livelihoods. Rather, he sees it as an enhancement. If advisors can use AI assistants to answer clients’ simple questions, perform simple functions, and free up time for complex tasks, they will ultimately receive deeper service and understanding.
To ensure tools are ready for deployment, Bhatnagar recommends continuing education on the AI direction. He believes established tools for the industry will be rolled out quickly, so advisors need to be ready to use them when they arrive.
