Financial planners must adapt — or risk losing clients to those who do.
It’s not about AI – but then again, it is
It’s fair to assume that all professionals possess the technical knowledge required for their field. Their competence is built on academic training and practical experience, enabling them to solve complex problems with skill and insight.
But what sets a true professional apart is not merely what they know – it’s to whom they are accountable. A technician applies knowledge with precision. A professional, however, makes a formal commitment to a recognised professional body, like FPI, and is bound by ethical codes, held accountable by peers and society, and bears a duty beyond commercial interests – a duty to their profession, clients, and the public good.
This is why AI will not replace professional financial planners.
Why AI will not replace true professionals
Artificial Intelligence can rapidly process data, construct portfolios, analyse cashflows, and project future scenarios. But it cannot care. It cannot empathise. It cannot make values based, ethical decisions in nuanced human situations.
Financial planning is inherently human. It’s not just technical advice – it’s about guiding people through their hopes, fears, and life goals with integrity and care. Clients don’t just want advice; they want a relationship with someone they can trust – someone who acts in their best interests over the long term.
AI can enhance the work of a financial planner, but it cannot replace the ethical judgment, emotional intelligence, or holistic guidance that defines the profession.
How financial planners must adapt to stay relevant
While AI will not replace financial planners, it will replace those who behave like technicians rather than professionals. The next generation of clients – Millennials, Gen Z, and beyond – expect more:
- Real time access to financial information via apps and digital platforms.
- Personalised, values driven advice that considers overall wellbeing, not just wealth.
- Guidance on emerging assets such as crypto, tokenised assets, and ESG investments.
- Authentic, ethical communication that’s clear, accessible, and aligned with their values.
They’re not seeking either digital or human interaction – they want both. They want hybrid advice: the efficiency of technology, with the depth and empathy of human wisdom.
To meet these expectations, financial planners must:
In essence, planners must evolve from product providers to trusted life advisers.
The risks of refusing to evolve
Those who resist this evolution face clear consequences:
- Obsolescence: Clients will gravitate towards practices offering integrated digital experiences.
- Loss of relevance: Ignoring emerging asset classes and technologies alienates younger clients.
- Eroded value: Planners focused only on selling traditional products will become replaceable.
- Career stagnation: Those who don’t upskill may be pushed to the edges of the profession.
Refusing to adapt is not a form of resilience – it’s a slow fade into irrelevance.
Global insight: AI is a partner, not a threat
The Financial Planning Standards Board (FPSB), with input from its global affiliate network including the Financial Planning Institute of Southern Africa (FPI), recently conducted global research on the impact of AI on financial planning. The findings are clear: over 75% of financial planners believe that AI will enhance their ability to serve clients more effectively.
The research confirms that AI is best seen as a partner – a powerful enabler that helps professionals deliver faster insights, better personalisation, and more responsive service. But AI is not the advisor. The human connection remains essential.
Conclusion
The financial planner of the future is tech-enabled, values-driven, and human-centred.
Those who resist change will either leave the profession or remain stuck in outdated models, selling isolated products to a shrinking client base.
Clients of the future won’t ask:
“Can you sell me a policy?”
They will ask:
“Can you help me live the life I want, achieve my goals, and feel secure?”
Financial planners who can answer that question – with professionalism, empathy, and innovation – will not only survive, they will thrive.
You can read the full FPSB Global Research report on AI and its impact on Financial Planning on their website at www.fpsb.org. Thank you for all the South African CFP professionals who participated in the survey.