AI Adoption Gains Traction Among Financial Advisors, Highlights Opportunities for Enhanced Client Service and Efficiency: Horsesmouth Survey

Financial advisors using artificial intelligence (AI) tools experience significant time savings and improved efficiency fleshing out ideas, writing emails, and creating marketing copy, a new survey by Horsesmouth reveals. But a substantial 38% of advisors are missing out on these benefits by not using AI at all.

The survey of more than 400 members of Horsesmouth, a leading provider of educational resources for financial professionals, underscores the promising benefits and current challenges associated with the adoption of generative AI tools in financial advisory practices.

"While many advisors are beginning to harness the power of AI, there remains a significant portion who have yet to fully embrace these tools," said William T. Nicklin, Chief Executive Officer at Horsesmouth. "As AI technology continues to evolve, it's crucial that we provide the necessary resources and education to help advisors confidently integrate AI into their practices and unlock its full potential."

Nicklin noted that Horsesmouth is launching "The AI-Powered Financial Advisor," a four-week virtual training program created by Sean Bailey, Horsesmouth's editor in chief, who has spent 2,000 hours researching and developing the program.

Key Finding #1: AI tools offer promising benefits to Financial Advisors, including content creation, writing improvement, and productivity

Survey results:

• 56% use AI to convert ideas and outlines into drafts
• 46% use it for email drafts
• 41% use it for marketing copy
• 36% use it to simplify complex topics

Advisor comments: "Best benefit for me is I will write either a response to a client, or even a white paper on a subject, then ask ChatGPT to revise it. It does come back with generally a much better presentation of the idea, thought or concept." Another advisor noted: "It creates new ways of expressing an idea that I wouldn't have thought of. Excellent for drafting an email, speech or even generating newsletter ideas."

Key Finding #2: AI adoption still limited, with many having little or no experience or consistent use

Survey results:

• 12% are daily users, with 9% using it multiple times per day
• 35% are not using AI at all
• 53% are barely using it (a few times per month or less)

One advisor commented, "At this point, we have only implemented AI tools to a minimal degree. We are very open to seeing guidelines and instructions for much more specific and business-centric uses and to improve our service model for our clients." Others expressed similar sentiments, with one stating, "I have not used it for business yet. I am unsure of how to implement it and cautious of the regulations that may be involved."

Key Finding #3: A confidence gap in AI proficiency exists, and concerns about accuracy, reliability, and compliance persist

Survey results:

• Only 34% feel confident in their ability to use AI effectively
• 29% don't feel confident in their AI skills
• Usage for key practice management tasks such as training, policies, hiring and HR were in single digits

Advisor comments: "The tool is still being refined. I do experience hallucinations from time to time. It suggested the titles of several books that have never been written." Another advisor observed: "Lack of AI education and the compliance requirements around it" as a significant challenge.

Bailey said it is clear financial advisors want to enhance their practices through AI. "The survey results underscore the transformative potential of AI for financial advisors, but also highlight the need for ongoing education and support. Horsesmouth remains committed to providing the resources and training necessary to help advisors successfully integrate AI into their practices. That's our stock in trade."

He said the four-week training program, "The AI-Powered Financial Advisor," is designed to empower advisors to effectively integrate AI tools, such as ChatGPT and Claude, into their daily workflows, enabling them to optimize client engagement, streamline marketing efforts, and boost overall efficiency. The program is tailored specifically for financial advisors, ensuring they gain the knowledge and skills needed to thrive in an AI-driven industry and stay ahead of the competition. "It's all about teaching advisor actionable insights that they can start using right away."

For more information on the AI usage survey and to access additional resources, visit horsesmouth.com.

About Horsesmouth

Horsesmouth helps financial professionals educate their clients and grow their businesses. The company serves financial advisors, planners, agents, accountants, and other professionals, providing extensive primary research and two decades of experience at the nexus of financial education, marketing, and technology. Horsesmouth is headquartered in midtown Manhattan.