AI tools can be a game-changer for IFAs and their teams, helping them streamline data handling, enhance client relationships and safeguard compliance says Shane Maher, Managing Director, Intelliworx, as he explores for us just some of the ways that you might want to harness the power of AI for the benefit of your business – and your clients too.
When it comes to using AI in your business, such tools, like Microsoft Copilot, are not just about technological progress – but about equipping IFAs with a strategic advantage to excel in an increasingly competitive and dynamic marketplace for financial advice in the UK.
Meaningful client relationships
At the heart of financial advice lies the need for strong, meaningful client relationships. AI tools such as Microsoft Copilot can step in as the ultimate assistant, providing IFAs with tools to foster personal connections that strengthen trust.
By integrating with CRM systems, Copilot for example can create detailed client profiles, tracking preferences and milestones, allowing advisors to personalise interactions and anticipate client needs with unrivalled precision.
The results speak for themselves. Research highlights that AI-enabled customer service increases engagement, driving cross-sell and upsell opportunities while simultaneously lowering costs. Within the global banking sector alone, AI technologies are projected to add up to $1 trillion in value each year, with enhanced client service contributing a significant share of this potential. AI’s ability to transform customer engagement ensures clients feel valued and understood, the foundation for building long-term loyalty.
In addition to client profiles, AI can personalise interactions between IFAs and their clients, such as by sending tailored recommendations and messages, can offer real-time responses to client enquiries via natural language processing, which ultimately can improve client experiences, boosting satisfaction and loyalty.
Cutting human error in compliance
Navigating the complex maze of regulations which IFAs have to face in the UK is no simple task. And the stakes are high of course, as non-compliance can result in hefty fines and damage to reputations.
This is where AI can provide a robust solution, simplifying compliance through advanced automation. By continuously monitoring regulatory updates and providing timely alerts, tools like Copilot ensure financial institutions stay ahead in a sector where change is constant.
Equally important, such tools also mitigate risks tied to human error by automating key compliance tasks. Notably, 72% of UK financial firms already use or are developing machine learning applications, with that figure expected to grow 3.5-fold by 2026.
Additionally, tools such as Copilot can act as a virtual legal expert, comparing policies, identifying misalignments in code, and flagging gaps in real time. This proactive role greatly enhances an IFA’s ability to maintain transparency and defend against regulatory scrutiny.
For example, AI can monitor and update regulatory changes automatically, as well as alert IFAs to modifications that impact operations, automats documentation for accurate, error-free records, and create robust audit trails to ensure transparency and readiness for scrutiny.
Getting a handle on data
Efficient data management is the foundation of success in for IFAs, yet navigating vast amounts of unstructured data can be overwhelming. Imagine grappling with disorganised records across multiple platforms – a challenge that slows progress and impedes decision-making. AI eliminates this hurdle by transforming chaos into order, organising unstructured data into a structured and highly accessible format.
By streamlining data processes, this allows advisors to focus on crafting strategies that truly drive value, rather than spending hours sifting through disorganised files.
A recent review of 16 leading financial institutions across Europe and the United States revealed that more than 50% have adopted a centrally led approach to generative AI, even where their data operations were previously decentralised – a clear testament to the benefits of such an approach.
The complexities faced by IFAs demand innovative solutions that allow them to thrive. Tools such as Microsoft Copilot can deliver exactly that, seamlessly integrating advanced AI to transform data management, elevate client relationships, and streamline regulatory compliance.
By adopting the right AI tools, IFAs can shift their focus from operational challenges to strategic growth, creating value for both their clients and themselves.
