Artificial intelligence (AI) has quietly moved from buzzword to backbone in financial services. Whether you notice it or not, AI is already shaping how your super fund flags unusual activity, how your bank detects fraud, manages risk, and interacts with customers and increasingly, how financial advice itself gets built. The question isn’t whether AI belongs in your financial life. It’s how to make sure it works for you, not against you.
How AI is improving financial planning
Advisers are using AI to handle the heavy lifting behind the scenes, freeing up more time for the conversations that matter.
Regulators have been clear that these tools sit on top of, not instead of, existing obligations. ASIC’s position is that using AI does not shift responsibility away from the adviser or licensee, and the same duty of care and best interests obligations apply regardless of how advice is produced[1].
AI excels at:
- Processing vast amounts of data quickly to identify patterns and insights.
- Modelling multiple scenarios simultaneously (cash flow projections, retirement outcomes, tax strategies).
- Personalising content and recommendations based on user profiles.
- Automating compliance checks and documentation.
- Providing instant responses to factual questions.
- Identifying potential risks or opportunities in financial positions.
AI can struggle with:
- Navigating ambiguous situations requiring judgment rather than calculation.
- Asking the right questions to uncover unstated needs or concerns.
- Understanding complex emotional contexts and family dynamics.
- Building trust and rapport essential for difficult conversations.
- Making ethical judgments where technical ‘right answers’ don’t exist.
- Adapting to highly unusual and unique circumstances.
Personalisation benefits
AI allows planning to move beyond generic rules of thumb toward strategies shaped around your individual circumstances, spending patterns and goals. Done well, this means more relevant advice can be delivered faster. It also means advisers can service more clients with genuine depth and understanding.
Privacy and data security
This is where caution matters most. ASIC has flagged that rapid AI advances are fuelling a rise in AI powered cybercrime, and financial services licensees like Lifespan are strengthening cyber resilience as a priority[2]. Moneysmart has also warned that while public AI chatbots can be useful for general research, they have real limitations and shouldn’t be relied on for personal financial decisions, particularly given research showing many younger Australians already trust these tools more than the evidence supports[3]. Before using any AI powered tool, ask:
- Where is my data stored, and does the provider comply with Australian privacy law?
- Is this general information or advice tailored to me and my goals and lifestyle?
- Who is accountable if something goes wrong?
Where an adviser adds value
The best use of AI in financial advice is as an amplifier of human judgement, not a replacement for it. A good adviser uses these tools to work faster and dig deeper, while keeping accountability, empathy and genuine understanding of your situation firmly in human hands.
The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.
[1] Artificial Intelligence in the Australian financial services sector: A practical compliance primer | Global law firm | Norton Rose Fulbright
[2] 26-092MR ASIC calls for urgent cyber uplift as AI accelerates cyber threats | ASIC
[3] Moneysmart publishes tips on using AI for financial issues | ASIC