Join Heather Hopkins and Alasdair Walker at Handford Aitkenhead & Walker as they explore the transformative impact of AI on financial advisory firms. Discover how industry leaders are integrating AI into their practices and preparing for the future.

Episode 5 takes a unique twist! This time, Heather and Alasdair let AI take the spotlight. Using Notebook LM, Google’s AI-powered research assistant, two AIs discuss our newly released Financial Advice Business Benchmarks Report. Based on a survey of over 300 financial advice professionals conducted this summer, the report offers valuable insights for the advice community. Tune in to hear what the robots have to say about the findings!

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Transcript — 

Disclaimer: This transcript was produced with the assistance of AI, so it may contain errors or inaccuracies.

Heather
Heather. Hey, welcome back to NextWealth insights. My name is Heather Hopkins, Founder and Managing Director of NextWealth. I’m joined by my co host, Alistair Walker, Managing Director of H, a, n, w, and a Chartered Financial Planner. Hello, Alistair,

Alistair
Hi, Heather. How you doing?

Heather 
Yeah, I’m good. I’m looking forward to this bit of a different format for today.

Alistair
Yeah, absolutely. So this is episode five of our companion podcast. It’s the AI Lab membership, something completely different today. But before we dive into that, I just wanted to thank our sponsors for making this whole project possible. Thank you very much to Aviva, ssnc, fidelity and Salesforce.

Heather 
So the format for today is, we’re not going to interview someone. We’ve got we’ve got the robots doing the work. Today, we decided to use notebook LM, which is a note taking and research assistant powered by AI that Google has developed. You can look at it yourself. Notebook, LM, dot, Google. You can upload any document to this tool, and it will create a podcast, a conversation between two people. If you don’t like the American accents, you can pay for premium and get any accent you want, but we’re too cheap at NextWealth, so we’re just going to go with the Americans. It’s quite a long podcast. Actually, it’s where we’ve got our financial advice business benchmarks report, which is a really useful resource that we publish for the financial advice community. And it’s based on a survey of over 300 financial advice professionals. It was done in the summer. We just published the report a few weeks ago, so the AIS will have a conversation about the findings, take it with a pitch of salt. Watch out for the mixed metaphors and Alistair and I’ll reflect on the conversation afterwards. Enjoy.

Speaker 1 
Welcome to our deep dive today, where we’ll be unpacking the 2024 financial advice business benchmarks report from NextWealth. Okay, we’ll be exploring the current state of the financial advice industry in the UK, focusing on the trends, challenges and opportunities facing financial advice professionals like you. This report covers a lot, yeah, from confidence levels and firm profiles to client acquisition and fees, it really does, so let’s jump right in. Yeah, let’s

Speaker 2
do that. What’s striking about this year’s report is the contrast in confidence levels. Oh, advisors seem very confident about things within their direct control, but that confidence wavers when it comes to external factors. That’s

Speaker 1 
an interesting observation. The report does show that a whopping 92% of advisors are confident in delivering value for money, and 89% feel good about meeting client needs. Yeah, so they clearly believe in their ability to provide quality advice. They do, but as you said, things get a bit shaky when we look at factors outside their control

Speaker 2
exactly. When it comes to the economy, regulator capability, or even technological innovation, there’s a noticeable dip in confidence. I see only 26% of advisors feel confident in the regulator’s capability. Wow, and just 46% are confident about the economy. That’s understandable, right? These are areas with significant potential to impact their business, yet they have limited influence over them.

Speaker 1 
It’s like they’re sailing in familiar waters, but with the storm brewing on the horizon, they’re confident in their navigation skills, but who wouldn’t be a bit uneasy about the unpredictable weather ahead.

Speaker 2 
That’s a great analogy, thanks. And this uncertainty likely plays a role in another key finding, okay, the shift from an exit mindset to a growth mindset. Oh, remember, in previous years, there was a lot of talk about advisors selling their businesses or leaving the industry. Right This year, however, yeah, a majority of firms are looking to grow, either by attracting new clients or hiring more staff.

Speaker 1
That is a significant change. It suggests a renewed sense of optimism and opportunity within the industry. It does, it seems they’re choosing to weather the storm and chart a course for expansion precisely.

Speaker 2
And what’s fascinating is the report identifies a distinct group of growth firms, those actively pursuing expansion by attracting new clients and a hiring staff. Okay, these firms seem to share certain characteristics that set them apart.

Speaker 1
Okay, let’s unpack this. Sure. What makes these growth firms tick? Well, what are they doing differently?

Speaker 2
One notable difference is in their terminology interesting. They’re more likely to call their client facing staff, financial planners rather than advisors. Okay, this might seem like semantics, yeah, but it could point to a more holistic, planning, centric approach to client service, interesting.

Speaker 1 
So it’s not just about managing investments, right? It’s about creating a comprehensive financial plan. Plan that addresses the client’s overall financial well being exactly.

Speaker 2 
And these firms are also more likely to have a Chartered Insurance professional or CIP on board, okay, further suggesting a commitment to providing well rounded advice. But it goes beyond qualifications, right? These growth firms are also structured differently, okay, they tend to be more active in recruiting for a wider range of roles. Interesting, hinting at a pod staffing structure where clients are supported by a dedicated team of specialists.

Speaker 1 
Ah, so rather than a single advisor handling everything right, the client benefits from a team approach, yep, with experts in different areas collaborating to provide more comprehensive support.

Speaker 2
That’s the idea. This pod structure not only allows them to handle more clients efficiently, but also positions them to offer a more personalized and specialized service, I see, but that’s not all. These growth firms are also more strategic about client acquisition.

Speaker 1 
They’re not just relying on this traditional word of mouth referral not solely

Speaker 2 
no while referrals are still important, these firms are also leveraging digital marketing and professional referrals more effectively. Okay? They’re actively targeting specific client segments online and building strong relationships with other professionals like accountants and solicitors to tap into their networks. I see this multi pronged approach seems to be paying off, yeah, allowing them to reach a wider audience and fuel their growth.

Speaker 1 
So they’re combining the best of both worlds, traditional relationship building with modern marketing techniques. Exactly. Smart move. Now let’s shift gears and talk about fees and charges, okay? The report reveals some interesting trends in this area as well. Yeah, it does. For starters, it looks like the average total cost paid by clients has increased slightly. Yes, the average

Speaker 2
total cost has gone up. Oh, driven mainly by a rise in ongoing advice fees. Okay? In fact, ongoing advice fees now represent the largest chunk of the total cost clients pay, with the average sitting at 77 basis points. That’s up 13 basis points from last year.

Speaker 1 
So while other costs, like platform fees, have remained relatively stable, yeah, the value placed on the advice itself seems to be on the rise, it seems. So it’s like clients are recognizing the expertise and personalized guidance they’re receiving and are willing to pay for it. That’s

Speaker 2 
a great way to put it, thanks. It suggests that clients see real value in that ongoing relationship and the peace of mind it provides. It’s not just about the product, it’s about the guidance and support. And speaking

Speaker 1 
of products, is there anything notable about how fees are structured is the traditional percentage of assets model still the dominant approach, while the

Speaker 2 
percentage of assets charging structure is still the most prevalent, its popularity is actually declining. Interesting. Many firms are exploring alternative models, such as subscription fees to cater to cater to different client segments and offer more flexibility. It’s

Speaker 1 
like they’re recognizing that one size doesn’t fit all. They’re diversifying their fee structures to accommodate different client needs and preferences, right? Much like they’re diversifying their client acquisition strategies Exactly. Now, before we move on to client demographics, okay, there’s one more point about fees, I found interesting. Yeah, the report highlighted a difference in product charges between larger and smaller firms. Yes,

Speaker 2 
that’s an important new one. Okay, larger firms tend to have higher product charges, right, potentially reflecting a higher allocation to active investments. Interesting. Smaller firms, on the other hand, seem to lean towards lower cost passive investments. So

Speaker 1 
there’s a potential trade off there? Yeah, larger firms might offer a wider range of investment options, including actively managed funds that aim to outperform the market, right? But those often come with higher fees. Smaller firms might focus on lower cost passive strategies that track a specific market index, it’s important for clients to understand these differences and choose a from that aligns with their investment philosophy and risk tolerance.

Speaker 2 
Absolutely, transparency and clear communication about fees are crucial, yeah, especially as the industry evolves and offers more diverse charging models, okay? But you’re right, yeah, let’s dive into the clients themselves now. All right, what does this report tell us about the people seeking financial advice?

Speaker 1
Well, the good news is that after a dip in previous years, okay, the number of active clients is rebounding. That’s

Speaker 2 
encouraging, yeah? What’s driving this resurgence? Do you think? Well, the

Speaker 1 
report doesn’t explicitly state the reasons behind this rebound, right? But perhaps it’s linked to the overall growth mindset we discussed earlier. Oh, okay, firms are actively seeking new clients, yeah, and those efforts are paying off. It

Speaker 2 
makes sense. And remember, these growth firms are using a variety of strategies to attract new clients. Right? Not just relying on traditional referrals, they’re leveraging digital marketing professional networks and potentially even offering more flexible service models, okay, to appeal to a wider audience.

Speaker 1 
So it seems like a combination of factors is contributing to this positive trend. Yeah, I think so. Now let’s talk about client needs. Okay, what are the top priorities for those seeking financial advice. According

Speaker 2 
to the report, the top priorities haven’t changed much. Okay, clients still primarily value peace of mind, right? Having a solid financial plan and achieving their financial goals, yeah, access to specific investment opportunities seems to be less important to them.

Speaker 1
So it’s less about chasing the hottest stock or investment trend, yeah, and more about that overall sense of security and progress, right? They want to know their finances are in order. Their future is secure and they’re on track to reach their goals Exactly.

Speaker 2
And this focus on peace of mind might explain another trend highlighted in the report, okay, the rise of minimum asset levels for new

Speaker 1
clients. Oh, right. The report mentions that nearly half of firms now have a stated minimum asset level for new clients. Yeah. What’s the rationale behind this? And what’s the typical threshold?

Speaker 2
The majority set the bar at 100,000 pounds or

Unknown Speaker 11:20
more. Wow.

Speaker 2
This suggests firms are becoming more selective about who they work with, right focusing on clients who align with their business model and service offerings. It’s like

Speaker 1
they’re trying to find the sweet spot, clients with a certain level of assets who are also seeking the specific type of planning and advice they excel at providing. Yeah, this allows them to build deeper relationships, deliver more tailored solutions and ultimately create a more successful and sustainable business. Precisely,

Speaker 2
it’s about finding the right fit for both the client and the firm. And speaking

Speaker 1
of factors influencing business practices, we can’t ignore the impact of regulation, of course, not especially the consumer duty. You’re

Speaker 2
right, the consumer duty seems to be having a significant impact on the industry, particularly on larger firms. Absolutely, the consumer duty is all about putting the client’s best interests at the heart of everything a firm does, right, and that’s prompting changes in how firms gather data, segment clients, yeah, and address vulnerabilities.

Speaker 1
So it’s not just about ticking boxes for compliance, it’s about truly understanding and meeting client needs in a meaningful way.

Speaker 2
Exactly the report highlights that firms have invested heavily in improving the quantity and quality of data they hold on clients, reviewing and refining their client segmentation strategies right and placing a greater focus on identifying and meeting the needs of clients with vulnerabilities,

Speaker 1
it’s about moving beyond a one size fits all approach and recognizing that each client has unique needs and circumstances that require personalized attention and solutions exactly this seems to tie in nicely with the growth firms and their emphasis on holistic financial planning,

Speaker 2
you’ve hit on a key point. Thanks. These growth firms seem to be embracing the spirit of the consumer duty by prioritizing client understanding and building your business models around delivering personalized solutions. So

Speaker 1
it’s not just about adapting to regulations. It’s about seeing regulations as a catalyst for positive change, for creating a more client centric and ultimately more successful business. That’s

Speaker 2
a fantastic insight, and it leads us perfectly to our next topic, the role of technology in this evolving landscape. Let’s

Speaker 1
save that discussion for part two. Okay, because I’m eager to hear what the report reveals about technology adoption, right, the rise of AI and the ongoing challenge of efficiency in the advice process. Agreed,

Speaker 2
there’s a lot more to unpack, so stay tuned. Okay, we’ll be right back after a short break.

Speaker 1
Welcome back before we jumped into the break, right? We were discussing how the consumer duty is driving significant changes in the UK financial advice industry, particularly in how firms approach gathering client data and understanding their needs. Yeah. Now let’s talk about how technology is shaping this landscape. That’s

Speaker 2
a great segue. Thanks. You know, technology plays a crucial role in helping firms meet these new demands, right and deliver a more personalized and efficient service, uh, huh. But the report also highlights a rather interesting paradox. Do you tell? Well, on one hand, technology is clearly essential for things like improving efficiency, yeah, meeting regulatory requirements and offering clients a modern digital experience, okay, but on the other hand, advisors aren’t exactly thrilled with their current tech setups.

Speaker 1
Yeah, the report mentioned that only 1/5 of financial advice professionals are actually satisfied with their technology. I know, right. That’s a surprisingly low number. It is. What do you think is contributing to this dissatisfaction? Yeah?

Speaker 2
I think several factors are at play. For starters, the technology landscape itself is constantly evolving. New tools and platforms are emerging all the time, which can make it difficult for firms to keep up and find solutions that truly meet their needs. Then there’s the issue of integration. Okay, many firms end up with a patchwork of different systems that don’t talk to each other, I see creating data silos and inefficiencies. It’s like

Speaker 1
trying to build a house with mismatched bricks and tools from different eras. Yeah, you might eventually get something standing right, but it’s gonna be a clunky and frustrating process, exactly,

Speaker 2
and I think that frustration is reflected in the report’s findings. But here’s the interesting part, okay, despite this dissatisfaction, there’s a strong appetite for change. Interesting, almost a third of firms are planning to either add new tech partners or discontinue existing ones in the next

Speaker 1
year. So they’re not just complaining. They’re actively looking for solutions. They are what are the main drivers behind these technology changes? What are they hoping to achieve?

Speaker 2
The top three drivers are improving business efficiency and productivity, better data management and handling right and staying competitive by offering a modern client experience. It’s clear that advisors recognize that technology is key to running a successful and future proof business. Yeah, they’re not just looking for shiny new gadgets. They’re seeking solutions that will help them work smarter, serve clients better, yeah, and ultimately thrive in this increasingly digital world.

Speaker 1
It’s like they’re realizing they need to upgrade their toolbox if they want to build a stronger, more sustainable business, that’s

Speaker 2
a great analogy. Thanks. And speaking of upgrades, yeah, we can’t ignore the biggest buzzword in tech right now.

Unknown Speaker
Oh, you mean ai, ai, yeah, it’s

Speaker 2
everywhere these days. It is. But how are financial advisors actually using it? What specific applications are we seeing in the industry? It’s a real

Speaker 1
mix. Okay, some firms are using AI for marketing purposes to target the right clients with the right messages at the right time. Okay. Others are implementing AI tools to assist with para planning, such

Speaker 2
as summarizing client meetings or drafting reports. And then there are AI solutions that can help advisors simplify data input, okay, pulling information from various sources and populating it into their systems automatically. So

Speaker 1
AI has the potential to automate a lot of those tedious, time consuming tasks that advisors often find themselves bogged down with, freeing up their time to focus on higher value activities like building relationships and providing personalized advice Exactly.

Speaker 2
It’s about using technology to augment human capabilities, right? Not replace them, okay? The goal is to empower advisors to work smarter, not harder,

Speaker 1
but even with all these technological advances. Yeah, the report highlights a persistent challenge efficiency, right? Yes. It seems that despite all the new tools and platforms, firms are still struggling to onboard new clients quickly. It’s true. The report mentioned that it still takes an average of three weeks or more to deliver initial advice to a new client. Why is that? What are the main bottlenecks in the process?

Speaker 2
The biggest culprit, yeah, as it has been for several years now, right? Is gathering data. Okay? And it’s not just gathering data from providers, it’s also getting the necessary information from the clients themselves, right? Yeah, this often involves a lot of manual back and forth, chasing paperwork and deciphering different formats. I see it’s a time consuming process that eats into the advisor’s valuable time, preventing them from focusing on what they do best. Yeah, providing advice and building relationships with clients. It sounds like

Speaker 1
a real pain point for the industry. It is, but surely, there are some technology solutions emerging that can help address this challenge. Oh, absolutely. After all, we live in a world of instant information and digital connectivity, you’re absolutely

Speaker 2
right, and that’s where I see the greatest opportunity for technology to truly revolutionize the financial advice process. Okay, we’re already seeing innovative tools that can automate data input, pull information directly from providers, right, and even pre populate reports with relevant data, okay, reducing the need for manual entry and minimizing the risk of errors. I see there are also solutions that can streamline client meetings, making them more efficient and productive by allowing clients to securely share documents electronically. Okay, collaborate on financial plans in real time and even sign documents digitally. So

Speaker 1
it’s about leveraging technology to create a more seamless and integrated experience for both the advisor and the client,

Speaker 2
right precisely. It’s about removing those friction points and creating a more efficient, transparent and ultimately more enjoyable process. Says for everyone involved, that

Speaker 1
makes perfect sense. But it’s not just about efficiency, is it? No, it’s also about leveraging technology to enhance the client experience and deliver greater value. Absolutely,

Speaker 2
think about it. Okay, clients today are used to instant gratification and personalized experiences in almost every aspect of their lives. They expect the same level of service from their financial advisor, technology can help advisors meet those expectations. Okay, by providing clients with 247 access to their financial information, right, personalized insights and recommendations, yeah, and interactive tools that empower them to take control of their financial future. It’s

Speaker 1
like giving them a window into their financial world, where they can track their progress, explore different scenarios, and communicate with their advisors seamlessly,

Speaker 2
exactly. And that’s where I see the real power of technology, yeah, in its ability to transform the client experience and create deeper, more meaningful relationships.

Speaker 1
This is all incredibly insightful, but I’m curious to hear your thoughts on how these technology trends might play out in the coming years. Sure, what do you see as the biggest opportunities and challenges for the industry?

Speaker 2
That’s a great question. I think one of the biggest opportunities lies in leveraging technology to personalize the advice experience at scale. Wow. Imagine a world where every client, regardless of their asset level or complexity, has access to a truly tailored financial plan. Yeah, that’s constantly updated and adjusted based on their individual circumstances and

Speaker 1
goals. That sounds like the Holy Grail of financial advice. It does, doesn’t it? How do we get there? I

Speaker 2
think it requires a shift in mindset. Okay? Advisors need to embrace technology, not as a threat, but as a powerful enabler, right? They need to be willing to experiment with new tools and approaches, to collaborate with technology providers, yeah, and to continuously learn and adapt.

Speaker 1
It’s about becoming more tech savvy, but it’s also about maintaining that human touch, exactly that personal connection that clients value so much.

Speaker 2
Absolutely, the future of financial advice lies in finding that sweet spot, okay, where technology and human expertise work together seamlessly to deliver a truly personalized and empowering experience for clients now,

Speaker 1
before we get too carried away with the future, let’s bring things back to the present. We’ve talked a lot about the broader trends shaping the industry, right? But what about the specific investment strategies that advisors are using to navigate this ever changing landscape? Sure, what’s hot, what’s not, and what shifts can we expect to see in the coming year.

Speaker 2
That’s a crucial question. Yeah, after all, investment strategies are the backbone of financial advice, right? Let’s delve into that fascinating topic right after the break. Sounds good. Okay,

Speaker 1
we’ll be back in a moment. Welcome back to our deep dive into the UK financial advice industry. We’ve covered a lot of ground, from confidence levels and growth strategies to the impact of regulation and the rise of technology. Now let’s zoom in on a crucial aspect, investment strategies, right? What’s hot, what’s not, and what shifts can we expect to see in the coming year?

Speaker 2
It’s a key question, yeah, especially given the current economic climate and market volatility, the report offers some interesting insights into how advisors are allocating client funds and what trends are emerging. One thing that stands out is the continued popularity of multi asset and multi manager funds for new client money,

Speaker 1
so a diversified approach is still the go to strategy, it seems so. What makes these approaches so appealing in the current environment? Diversification

Speaker 2
helps spread risk, right, which is particularly attractive in uncertain times. Multi asset funds offer exposure to a mix of asset classes like equities, bonds and alternative investments, right? All within a single fund, making it easier for advisors to manage client portfolios, okay, and potentially smooth out returns. That

Speaker 1
makes sense. Yeah, it’s like building a sturdy house with a strong foundation. You’re not putting all your eggs in one basket, exactly. And the report also mentions that the use of discretionary managed portfolio services. Oh, right, MPs is on the rise as well. It is. Why do you think that is MPs,

Speaker 2
where investment decisions are delegated to a professional manager, right? Offers a higher level of service and can be a good fit for clients who prefer a more hands off approach to their investments. Okay, they’re essentially trusting an expert to navigate the complexities of the market on their behalf.

Speaker 1
That makes sense for people who are busy, lack the time or expertise to manage their own investments. Yeah, or simply prefer to have a professional at the helm, right? It’s about peace of mind and delegating a complex task to a. Trusted expert, exactly, are there any strategies that are falling out of favor?

Speaker 2
Interestingly, the report notes a decline in the popularity of build your own portfolios and single strategy funds. Interesting, this shift suggests that advisors are moving away from more customized or concentrated approaches right and leaning toward more diversified and professionally managed solutions. So

Speaker 1
there’s a clear trend towards diversification professional management and a desire for that set it and forget it approach to investing, it seems so it aligns with the themes of peace of mind and seeking expert guidance that we’ve seen throughout the report. Exactly now last year, we saw a surge in interest in cash as an asset class. What’s the outlook for cash this year?

Speaker 2
The pendulum has swung back. Oh, while cash was seen as a safe haven, yeah, during the height of market uncertainty, right? Advisors now expect allocations to cash to decrease, okay, and equities are back in favor. Interesting, with many advisors anticipating increased client interest in this asset class.

Speaker 1  
So as things stabilize a bit, investors are ready to dip their toes back into the stock market. It seems so. But isn’t there still a lot of uncertainty in the global economy?

Speaker 2
There is, yeah, and that’s why diversification remains so important. All right, but remember, equities have historically delivered higher returns over the long term compared to cash or bonds. Okay, so as confidence returns and investors look to grow their wealth, right? It’s natural to see a renewed interest in equities. I see, of course, the actual allocation will depend on individual client circumstances, risk tolerance and financial goals, right? But the overall trend suggests a renewed appetite for growth, okay, even amidst the uncertainty

Speaker 1
that makes sense, yeah, it’s all about finding that balance between managing risk and seeking growth potential, right? It’s like adjusting your sales to catch the right amount of wind, neither too much nor too little, to reach your destination Exactly.

Speaker 2
It’s about navigating the complexities of the market strategically right, and adapting to the ever changing conditions.

Speaker 1
Now, as we wrap up our deep dive into this year’s report, okay, let’s step back for a moment and consider what it all means for financial advisors like you. Okay, what are the key takeaways that you can apply to your own practice? Well,

Speaker 2
I think one of the biggest takeaways is the importance of adaptability. The industry is in constant flux, shaped by changing client demographics, evolving regulations and technological advancements, right? The firms that will thrive in this dynamic environment are those that embrace change, right? Stay ahead of the curve and continuously evolve their services and approach, couldn’t agree more, and part of that adaptability involves harnessing the power of technology. Yeah, it’s clear that technology is no longer optional, right? It’s essential for running an efficient, compliant and client focused practice, okay, but remember, yeah, it’s not just about adopting technology for technology’s sake. It’s about using it strategically to enhance the client experience, improve efficiency and ultimately deliver better outcomes, yeah,

Speaker 1
so it’s about finding those technology solutions that truly add value to your practice and your clients lives Exactly. It’s like choosing the right tools for the job, not just the shiniest or the most expensive ones, right? But technology is just one piece of the puzzle at the heart of it all. Yeah, financial advice is about building relationships, understanding client needs and providing personalized guidance, absolutely,

Speaker 2
the human element is what sets financial advice apart. Right? Technology can enhance the experience, but it’s the advisor who builds that trust, provides that empathy and guides clients through the complexities of their financial lives. So the

Speaker 1
future of financial advice is bright. It is but it’s going to be shaped by those who are willing to embrace change, invest in technology and prioritize their clients needs above all else, absolutely, it’s about finding that sweet spot where technology and human expertise work together seamlessly to create a truly valuable and empowering experience for clients, I agree, and that’s a wrap on our deep dive into the 2024 financial advice business benchmarks report. We hope you found it insightful and useful for your own practice.

Unknown Speaker
It’s been a pleasure sharing these insights with you. Thanks

Unknown Speaker
for joining us

Heather
You Hey, Alistair, so that was a romp through the financial advice business benchmarks report. I’ll get to your thoughts in just a minute from me. Quickly. There was a couple of things it got wrong. I thought it was really good. I mean, it’s the and it’s v1 right? So it’s a. Only going to get better from here, but they talked about an exit mindset and a growth mindset. And to me, growth mindset means something different than a firm that’s looking to grow organically. So so they mix that up a bit. And that was, I thought that was a bit confusing to use terminology that sort of accepted to mean something else. And they used that a couple of times. So that was, that was odd. They thought that a KIPP was a Chartered Insurance professional. I think it was. They thought that clients because fees, advice fees have gone up. They thought that was because clients were happy to pay more for advice, which probably isn’t actually the dynamic going on. It’s it’s not that financial advisors aren’t fully justified in increasing their fees, but it’s probably not because clients see that’s where the value is, and so they’re happy to pay a bit more for that. It might be part of the dynamic, but I thought that their interpretive analysis of some of the data was a little bit wrong. I wasn’t happy that they were talking about it as if it was their view, because it was my view and my company’s view, and I found that a little bit weird to listen to, but but a great tool to summarize something in a more engaging way than maybe reading a report. For some people, what do you think? Alistair,

Alistair
yeah, I’m just imagining going to my next client meeting and then saying, You know what I like, what you’re doing so much. Can I pay you 50% more? Is that okay? I’m not sure that’s going to be happening anytime soon, but if any clients are listening and you want to, please, please, just let me know. I think with this, it reminds me of the early days of chat GPT. I’m not even the early days. It is still the case that once you’re in the once you’re in the sort of world of interacting and reading and listening, in this case, you very quickly, after a couple of minutes, get into what I think is collectively known as the uncanny valley. It becomes very obvious, although it’s very close to being right, it becomes very obvious that this isn’t two people speaking. And it’s hard to pin down exactly why it’s obvious, because the voice models are great. The sort of cadence of the speech works feels natural, but when you put it all together, it’s just like there’s a piece of the jigsaw missing. But that doesn’t take away from from the value, I don’t think and and as you say, you know, this is version one. It’s the worst it’s ever going to be, and it’s the best it has been so far. So when we bear that in mind, I think it’s that classic thing of no nobody should be. None of us podcast hosts should be listening back to that and worrying about our jobs today, but maybe, maybe in a couple

Heather
of years time. And our fantastic producer, Artemis, shouldn’t worry either, because I thought it was really odd that they talked over one another. Sometimes it was quite funny, and to female voice in particular, every time they would ask a question, and the guy would say, Oh, good question. Yeah, right. And that was quite strange that she took so much nice credit for her excellent questions. I guess the last thing for me was the bit that spooked me the most was when the AIS were talking about how AI is not a threat, as it was interpreting some of the results about advisors and advice firms looking to embrace AI. And they said, you know, tech and AI are not a threat. Firms are looking to embrace it, and it’s really important to maintain a human keep the human touch. So, you know, our jobs are safe for now, the AI says, So, so. So, a fun experiment, not quite there yet, but great. And I’ve done things like, I uploaded some FCA documents to notebook. Lm, to get a summary, because you don’t want to read all these things, right? We have a lot to read, and so it can can be a bit more engaging notebook. LM, dot, Google, have a play and a quick shout out to our sponsors. Thank you again for supporting Aviva fidelity, ssnc and Salesforce. Thanks Alistair, as always, for joining me as my co host. Thank

Alistair
you, Heather. And next episode, we’re going to be speaking to Alan garong from advisory. Ai, again, a bit of an experiment with the format. We’re going to be having a bit of a product demo as well as a conversation with Alan about all things. Ai,

Heather
fantastic. And thanks to our real live producer, Artemis Irvine, your job is safe for now.

Alistair
Thanks. Adams, meet you soon.