AI feels like the shiny new tool everyone’s reaching for, especially for running up big documents or advice. It’s fast, seemingly clever and can take a lot of grunt work off your plate as a financial advisor – or can it?
One of the world’s biggest financial firms has had to refund a substantial portion of money to the Federal Government after using AI to create a report that was riddled with errors. This is what happened and how you can help protect your business and self.
What happened with Deloitte using AI?
An article recently highlighted how Deloitte had to refund more than 20% of a $440,000 government report after using AI. It wasn’t just an embarrassing moment for Deloitte, but also a lesson for us all introducing AI into our businesses and may well resonate with many of us.
The report contained fabricated references and factual errors, reminding everyone that AI can’t yet replace human judgement. Even the biggest companies can stumble when they neglect human oversight on work completed by AI.
The Risks of Using AI Financial Advice in Reports
AI is already reshaping the advice landscape. It can analyse data, write file notes, draft documents, and create spreadsheets faster than ever, but it can’t understand why one strategy fits a client better than another like a human can.
That’s where human expertise remains irreplaceable. The best results come from advisers and paraplanners who use AI for the heavy lifting while keeping people in charge of context, judgement, and care. If you try to outsource more than 75% of the job to technology, you will have problems. If you complete more than 25% of the work without automation, you’re missing out on efficiencies. We call it the 75/25 model, which is where around 75% of the process can be handled by technology, but the critical 25% still relies on human understanding, experience, and skill.
How AI Financial Planner Tools Should Be Used to Avoid Inaccuracy
Technology should support great advice, not compromise it. Tools can speed up the heavy lifting, but experienced humans ensure accuracy, compliance, and clarity.
If you’re going to use an AI financial planner, they must be used in tandem with human experience. Do not cut corners.
Paraplanning is evolving faster than ever. AI and automation are improving efficiency, but the need for human judgement and experience is still here and probably has never been greater. A hybrid future is on the horizon, where technology does the heavy lifting, while skilled paraplanners focus on context, quality and care. We will have a more efficient and profitable business.
At Future PP, we’re already building toward that future, responsibly, carefully, and with humans at the core. We’re taking this philosophy even further, developing tools that use AI thoughtfully, in the hands of experienced paraplanners who know how to use it responsibly. The right technology, guided by the right people, will make advice delivery smarter, not harder.
The future of paraplanning isn’t man or machine – it’s the right balance and combination of both.
