The Human Edge: What AI Can’t Replicate in Planning

The Rise of AI in Financial Services

Artificial Intelligence (AI) is arguably the most transformative technological advancement since the internet. It enables rapid information retrieval through rule-based engines and parameters, evolving at an unprecedented pace. AI has improved efficiencies across industries — from operations to decision-making to research — and financial services is no exception.

AI excels at straightforward tasks, such as calculating how much money is needed to fund a specific retirement lifestyle or conducting a quick needs analysis for insurance coverage.

Today, people can access these AI-powered tools directly, bypassing the need for a financial professional for basic calculations. Generative AI takes problem-solving a step further, raising questions about whether it could replace transactional financial advisors.

Increasingly, AI is being used to handle administrative tasks and transactional work — organizing meeting notes, tracking action items, updating systems, and preparing follow-ups. This allows advisors to spend less time on logistics and more time focusing on what matters most: guidance, judgment, and Client relationships.

While AI is powerful, it can’t read the room, navigate family conflicts, or make collaborative decisions. It’s a tool, not a replacement for human insight.

The Human Element: Empathy and Adaptability

When it comes to financial planning, AI struggles with complex, multidimensional issues in areas like estate, tax, business succession, and insurance planning.

A Certified Financial Planner™ is tested on over 70 topics, many of which require creative problem-solving and collaboration with other professionals, such as CPAs and attorneys. These skills go beyond algorithms. Credentialed advisors bring emotional intelligence to the table, helping families and businesses navigate dynamics with a holistic planning process. As fiduciaries, they are required to prioritize their Clients’ best interests.

Guiding Clients Through Uncertainty and Change

One of the biggest challenges today is helping Clients manage competing priorities or shifting perspectives, especially with investments. While the long-term benefits of investing in equities are well-documented, some Clients may choose more conservative investment strategies, even when time is on their side.

Clients’ risk tolerance can change quickly during periods of extreme market volatility. Advisors play a critical role in helping Clients stay the course, even when it’s difficult. AI cannot replicate the human reasoning and empathy that drive collaborative planning and decision-making.

The Best of Both Worlds: Human Connection Meets Technology

Clients need to feel that their advisors care before they care about what their advisors know. This is why it’s essential to work with a planner you know, like, and trust. However, that doesn’t mean AI should be excluded from the planning process.

AI can establish a strong baseline, but the most effective advisors combine personal connection with technological sophistication. This blend delivers deeper insights and more comprehensive planning.

AI-Powered Tools Enhance the Advisory Experience

The rise of fintech firms leveraging AI has transformed the advisor-Client relationship. Leading advisory firms recognize the value of these tools in enhancing the Client experience. Many use AI-powered planning tools, including machine learning technology, to deliver more comprehensive insights.

Generative AI, for example, excels at quickly analyzing and summarizing legal or tax documents to uncover planning opportunities. When choosing an advisor, Clients should ask about the tools they use to ensure a more robust engagement.

Financial planning is about empowering people to make informed decisions and achieve their goals. Technology will support — not replace — a strong advisor. Take the next step in securing your financial future. Connect with a credentialed financial advisor today to experience the perfect blend of expertise and empathy.