Artificial intelligence (AI) has been around for a while now, but it was mostly used in personalized ways. In November 2022, OpenAI introduced an AI chatbot called ChatGPT. Since then, ChatGPT and other similar models have become a part of our daily lives.
ChatGPT is a powerful AI tool that can solve almost any problem or complete any task when requested. You may have heard about how ChatGPT passed exams in fields like medicine, law, and business. This made people worry that bots might replace them at work, including those in the financial advisory community. However, we want to explain why ChatGPT is not as much of a threat as it seems and why the human touch is still important.
ChatGPT works by receiving a user’s question or prompt and providing a response based on the data it has been trained on. However, to get accurate answers, you need to ask the right question. In the case of financial planning, it’s not just about saving and investing. There are many other complex factors to consider that cannot be ignored.
A human financial advisor understands your needs, income, and objectives. They design a portfolio that not only meets your financial goals but also takes care of tax, liabilities, and insurance requirements.
ChatGPT can only answer the specific queries you ask it, without understanding what is truly important to you. Additionally, in a changing economic situation, a human advisor will always guide you to make appropriate changes to your investments.
ChatGPT is a platform that can provide knowledge in various fields. However, to ask the right questions, you must have a good understanding of the topic. It’s like a law graduate interviewing an IT professional. ChatGPT only shares knowledge it deems relevant at that time, which can be seen more as an opinion rather than personalized advice.
Financial advice varies from person to person because each individual has different responsibilities and goals. ChatGPT overlooks this important aspect and provides answers based on a one-size-fits-all approach.
One of the limitations of AI is that it lacks emotions. In situations such as a medical emergency, the loss of a loved one, or making emotional decisions like buying a house or planning a wedding, ChatGPT may not fully understand the sentiment associated with those occasions.
Financial advisors are humans who understand the values of society. They can help you by suggesting measures that align with your emotions as well as your financial objectives.
In times of emergencies, people are more likely to provide immediate assistance compared to AI. Financial advisors can guide you at any time, allowing you to focus on the emergency while they take care of your finances.
Financial advisors have a better understanding of emergency situations than AI tools. Simply receiving guidance is not enough during such times. Moreover, financial advisors can provide more effective guidance than an AI chatbot. For example, if your spouse needs information about your insurance policies, an AI tool may struggle to locate the details, whereas a human advisor would have that information readily available.
While AI technology has made significant advancements, there is still a long way to go. Artificial intelligence is fast and accurate, but it lacks emotions. On the other hand, humans may be slower and less accurate but excel in executing tasks.