A recent study by the Mckinsey Global Institute forecasts up to 800 million workers worldwide could lose their jobs to automation by 2030.
There are some excellent graphics on the impact of Artificial Intelligence (AI) on the global workforce at the Visual Capitalist website. Is your job safe?
ROBO-ADVISERS TO REPLACE FINANCIAL ADVISERS?
There has been a lot of debate in the financial planning industry about the impact of robo-advisers – AI programs that provide financial advice or investment management online with moderate to minimal human intervention.
While they have a place in the financial planning landscape (especially for transaction-oriented advice), they cannot replace the human relationship between a client and a real financial adviser. Here are three fundamental reasons:
Money is not about mathematics. It’s about emotions.
Financial planning is about understanding a client’s fears, hopes and dreams. It takes a human being to understand these feelings so that the client feels understood before there’s any real chance the client will take the recommended steps.
Setting up an investment program is the EASY part. Holding onto one is the HARD part.
We human beings are driven by emotions and do irrational things in times of stress. When investment markets are free falling and our hearts are sinking, it’s unlikely we will turn to machines for guidance no matter how logical the advice may be.
Financial success, like any other type of success, comes from doing not just knowing.
The real value of an adviser is to get the client to take actions to make a change despite the uncertainties, to help them stick to the course when the going gets tough, to hold them accountable when they fall short, and more importantly to tell them to relax and slow down when they are there.