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Financial advisors should see artificial intelligence as a partner. “Those who use digital tools confidently can even emerge stronger from the AI revolution,” says Michael Patzelt, Head of Sales DACH at Moventum.

Artificial intelligence (AI) has long had its place in the world of finance. Chatbots answer recurring questions from bank customers. Robo advisors determine the right investment proposal for an investor’s risk profile. Due to the rapid progress made in large-scale language models in particular, artificial intelligence will take over more and more tasks in the coming years. Will technology replace people in financial advice? “Not at all,” says Patzelt. “Good advisors will not only survive the ever-increasing use of technology, they can even capitalise on it.”

Algorithms are superior to humans when it comes to analysing huge amounts of data. For example, they can quantify risks on the financial markets faster and more precisely. They make fewer errors when making standardised queries about individual risk-bearing capacity in order to determine the appropriate structure for an investment portfolio. However, according to Patzelt, it is a fallacy to assume that decisions on financial security and wealth planning could be fully automated in the future. “Even with the advances expected in AI in the future, human financial advisors will still be needed to build up a relationship of trust with their clients and provide empathetic support when making decisions,” says Patzelt.

For example, a robo advisor also leaves questions unanswered when it compares loss probabilities with an investor’s risk appetite and – fed with countless historical data points – suggests the right mix of asset classes for their goals and individual investment horizon. “Technology reliably provides a robust basis for financial decisions. But it neither eliminates all uncertainties nor can it fully capture the imponderables of a life situation,” says Patzelt. This is precisely where advisors can play to their strengths in a dialogue at eye level. In this scenario, a technology-supported investment proposal is the basis for the discussion. The advisor combines this with the customer’s personality, including their emotional state. “This leads to results that not only objectively match the investor’s goals, but also make them feel secure.”