At the Financial Planning’s ADVISE AI conference in Las Vegas, Oasis Group CEO John O’Connell demonstrated how AI tools can rapidly generate extensive financial reports and plans. Using systems like Perplexity AI, O’Connell showcased the creation of a detailed 20-page stock report for Oracle, complete with charts and financial metrics, in mere seconds. While these AI-generated documents impressed with their speed, they also raised concerns about accuracy and reliability.
O’Connell noted that AI models often provide moderate confidence levels and may require more data to enhance their accuracy. He emphasized the importance of human oversight to prevent potential biases and errors, known as “hallucinations,” where AI might fabricate information due to insufficient data. This is particularly crucial in wealth management, where the stakes of financial advice are high.
Michael Kitces, a keynote speaker at the conference, echoed the sentiment, underscoring the need for human involvement to mitigate risks associated with AI-generated advice. The conference also highlighted the potential for AI to streamline initial financial planning drafts, which can be further refined by professional advisors.
Despite the promising speed and efficiency of AI in generating financial documents, experts like Michael Bisaro from StraightLine caution against relying solely on AI due to inconsistencies and biases. Instead, AI should be viewed as a tool to assist advisors, who must still ensure the accuracy and suitability of the advice provided to clients.
