Could GenAI change the financial advice game?

investmentnews.com:

Generative AI is poised to reshape the landscape of financial advice for retail investors, with more GenAI tools emerging as a prominent source of advice, according to a new report from Deloitte.

The Deloitte Center for Financial Services projects that GenAI-enabled applications will expand dramatically from their current nascent stage to 78 percent usage by 2028. The technology is expected to become the leading source of investment advice by 2027, driven by the accessibility and capability of GenAI tools online.

As financial firms integrate GenAI capabilities, they are expected to offer more sophisticated and personalized investment advice, potentially attracting new players with strong technical backgrounds to the financial advisory market. Over the next few years, the report anticipates a likely increase in generative AI adoption across investment summaries, risk management tools, and tailored guidance for investors.

According to Deloitte, nearly half of investors (47 percent) sought financial advice from friends and family in 2023, making them the top source of financial advice. Financial advisors were consulted by 35 percent of investors, while 28 percent turned to financial websites. The average investor relied on 2.1 sources for their financial decisions.

As GenAI becomes more prevalent, it is expected to become part of this mix, offering broad-based and specialized applications to assist investors.

While 28 percent of investors currently use financial websites that aren’t GenAI-capable, Deloitte expects that to collapse to 9 percent by 2028 as investors favor websites with GenAI capabilities that can tailor content to their individual needs. The likelihood of financial institutions boosting their online advice