The impact of AI on Paraplanning

My wife has been thinking about leaving the exciting world of Product Management and joining us in the fast-paced world of Paraplanning. However, she is worried about the impact that AI will have on Paraplanning. I told her that I did not see it having an immediate impact but what do I know. What impact do you all believe that AI will have on Paraplanning in the long run?

I know that there was a LV owned company talking about providing an AI based Paraplanning service towards the end of last year.

Do you feel that AI will benefit Paraplanning in the future or will it be its death knell? Is this a career path where you would recommend for young people?

Could it have a bigger impact on Outsourced Paraplanners to begin with? Will it drive down the rates can be charged?


  • richallumrichallum Administrator
    Ask Siri. That'll tell you all you need to know. 

    On a more serious note, it may help report writing but has a long way to go to replace the real skill of a Paraplanner: thinking, questioning, analysing, challenging, planning etc. 

    Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. Republican.

  • I think the role of a paraplanner is currently far too complicated to be completely carried out with artificial intelligence

    I've thought about the circumstances in which the work I do could be programmed and it's just too involved. And a low priority for those doing the programming (transport, healthcare etc far higher up the list) 

    Technology will drive down the cost and time of production of analysis and reports but all that will do is make way for more time to spend analysing and reporting.

    And as always the more work a paraplanner can take from an advisor the more time the advisor has to spend in front of a client, and there is no shortage of clients. 
    Benjamin Fabi FPFS
    Chartered Financial Planner 
  • JonaJona Member
    Chunking though a load of low value ISA recommendations or small regular premium PPs for the young and low salaried is "ADVICE" that could easily be done via AI - and I would welcome it - gets it off my / my colleagues desks.

    But we are para"PLANNERS" and as such enjoy financial planning and the multitude of intricacies, complexities and emotions that come with it.

    There is a big difference between old skool advice and planning.
  • I think there will be areas it can help us, and help us a lot, but I can't see it having such an impact on what we actually do. I can't see AI replacing the technical abilities we need to carry out the job never mind the hands on, at the coal face, knowledge of providers, products, tax, etc etc.

    Sounds like she'll bring a fresh view to the profession. Good luck.
  • I think you're misunderstanding how advanced AI can be. If you chuck in all the client's details and the tax breaks, there's no reason why a computer couldn't spit out a decent financial plan.

    So I can definitely see a time when admin-level employees can use computer systems to produce the work a Paraplanner currently does.

    I think the reason it's not happening to any great extent is more to do with the fact it adds no benefit to the people with the deepest pockets to invest in the tech. Big insurance houses probably don't care whether the advice-process was manual or automatic.

    Paraplanners, being paid by IFAs, needn't worry. I don't suppose they're looking to spend the money.  However, the new trend of Standard Life, SJP et al absorbing smaller firms could eventually lead towards investment in this area if, in the long-term, it becomes cost-effective.
  • I don't believe that a provider would be able to accurately program an AI to carry out all the various tasks of paraplanners without missing out key elements, because ultimately they are not paraplanners. Of course, even if the programs were created by paraplanners, they might only be relevant to one specific business or advice model. 
    The point was made again yesterday at the PFS purely paraplanning conference that there is a chronic shortage of paraplanners, so I wouldn't be concerned about the rise of the robots just yet.

    Just imagine as well, how would an AI program carry out due diligence say of platforms? Would advisers be happy if the AI consistently recommends Aviva at the moment given their current predicament?

    The other key element that everyone experiences currently in some form or another, is one of understanding how programming languages work and interact with one another (or don't). The FS industry has always been behind the curve in adopting technical change and you only need to look at the variety of systems still being used regularly to understand the issues this brings. To give one example - Iress Adviser Office is built on programming language designed in the 80s!
  • I'm looking forward to the day the computers do everything for us and we can all go to the beach!

    Was at the morning star conference earlier in the week and one of the speakers said advisors were always asking if he can get them a robo-paraplanner as paraplanners are too expensive, which he agreed with.  Instant 1 out of 5 on the feedback form.
  • NathNath Member
    Who's Al?
  • JonaJona Member
    @Nath Friend of Betty's I think
Sign In or Register to comment.