Behind the Numbers: EMARKETER Podcast

Episode: The Banking & Payments Show: AI as Your Financial Advisor. What Happens When Technology Takes the Lead?

Release Date: March 11, 2025
Host: Rob Rubin, Head of Business Development at EMARKETER
Guests: EM Analysts Jacob Bourne and Lauren Ashcroft

Introduction

In the March 11, 2025 episode of Behind the Numbers, hosted by Rob Rubin, EMARKETER delves into the evolving role of Artificial Intelligence (AI) in the financial advisory sector. Rubin engages with EM analysts Jacob Bourne and Lauren Ashcroft to explore whether AI will supplant human financial advisors, the regulatory landscape surrounding this transition, and the broader implications for consumers and the economy.

AI in Everyday Life: An Icebreaker

The episode begins with a light-hearted discussion on how AI has permeated the hosts' personal lives. Rob Rubin asks Jacob and Lauren about their use of AI for household tasks beyond professional applications.

• Jacob Bourne (00:35):
  "I tend to use AI when I have questions about household projects. It saves me time finding good answers, though it does mean spending more time on digital interfaces."

• Lauren Ashcroft (00:44):
  "I use ChatGPT like a search engine for things like vacation planning. It's helpful, even if it's not yet integral to my daily life."

Rubin adds his own example of using AI for meal planning, highlighting its practical benefits in managing everyday tasks.

Consumer Preferences: AI vs. Human Financial Advisors

Transitioning to the core topic, Rubin introduces a survey from Northwestern Mutual reviewed in an Axios article. The survey reveals that while a plurality of 54% of respondents prefer human financial advisors, acceptance of AI is growing, especially among younger demographics.

• Rob Rubin (03:32):
  "A plurality of respondents prefer humans, but it's only 54%. Preferences skew older, and there's a lack of experience with AI in financial advising."

Lauren Ashcroft addresses the broader question of AI replacing human roles across various careers, emphasizing the continued need for financial advisors augmented by AI.

• Lauren Ashcroft (03:54):
  "There will still be financial advisors and a need for them, but with AI, they'll become more efficient and able to serve more clients."

Jacob Bourne provides insights into the regulatory environment under the Trump administration, which favors less stringent regulations on AI. He posits that while this creates opportunities for AI financial advisors, the technology is still immature and poses risks that consumers are wary of.

• Jacob Bourne (04:08):
  "The Trump administration is pursuing lax regulations on AI, creating a favorable environment for launching AI financial advisor tools. However, the technology isn't mature yet, and bugs in the financial sector could deter consumers."

Impact on Jobs: Will AI Replace Financial Advisors?

Rubin initiates a debate on the potential job displacement resulting from AI integration into financial advising. According to the Certified Financial Planner (CFP) Board, there are approximately 95 certified financial planners in the U.S.

• Lauren Ashcroft (05:40):
  "I believe there will be a slight decline in financial advisory jobs as AI allows advisors to handle more clients efficiently."

• Jacob Bourne (06:06):
  "There may be a reduction in entry-level financial planner positions, but certified CFPs are likely to remain stable. An aging population seeking financial advice could balance any declines."

Rubin concurs, suggesting that while the number of jobs may remain relatively constant due to population growth and increased demand, the nature of the roles will evolve with AI assistance.

• Rob Rubin (06:53):
  "I think the number of financial advisors will stay the same overall because population growth will sustain demand, despite AI's efficiency improvements."

Rankings: Predicting the Outcomes of AI Financial Advisors

In the episode's final segment, Rankings, Rubinin poses four potential outcomes of widespread AI financial advisor adoption. The guests rank these outcomes based on their likelihood:

1. Close the Wealth Gap
2. AI Financial Advisors Are Not Allowed to Fail by Consumers
3. AI Creates New Systemic Risks
4. AI Further Advantages the Wealthy

Closing the Wealth Gap

• Lauren Ashcroft (08:15):
  Ranked as the most likely outcome, Lauren believes AI can enhance accessibility to financial advice, particularly for those previously deterred by barriers to traditional advisory services.

• Jacob Bourne (08:44):
  Assigned a mid-tier ranking, Jacob acknowledges AI's potential to democratize financial planning but remains cautious about its ability to fully close the significant wealth gap influenced by multiple factors.

• Rob Rubin (09:14):
  Viewed as the least likely, Rubin argues that premium AI financial services will predominantly benefit wealthier individuals, who can afford advanced models, thereby not effectively closing the wealth gap.

AI Financial Advisors Are Not Allowed to Fail by Consumers

• Lauren Ashcroft (10:28) & Jacob Bourne (10:28):
  Both rank this outcome as moderate likelihoods, citing the necessity for human oversight to mitigate AI's fallibility and regulatory considerations to ensure accountability in financial advice.

• Rob Rubin (11:31):
  Placing this slightly lower, Rubin contemplates consumer trust in AI's infallibility but remains uncertain about long-term acceptance of AI's potential mistakes.

AI Creates New Systemic Risks

• Jacob Bourne (11:55):
  Considered highly likely, Jacob warns of unpredictable outcomes and cascading effects from AI's integration into financial systems, emphasizing the high-risk nature of advanced AI technologies.

• Lauren Ashcroft (12:35):
  Similarly ranks this outcome as highly likely, pointing out the complexities and potential legal ramifications if AI advisors make significant mistakes impacting consumers' wealth.

AI Further Advantages the Wealthy

• Jacob Bourne (13:54):
  Aligning with Ruben's earlier perspective, Jacob foresees AI financial advisors exacerbating wealth disparities as affluent individuals gain access to superior AI tools, while others may rely on less effective or sponsored versions.

• Lauren Ashcroft (14:36):
  Views this outcome as the least likely, suggesting that top-tier banking relationships and personalized human oversight will mitigate AI's advantage for the wealthy, maintaining trust and high service levels.

Conclusion

Rob Rubin wraps up the discussion by highlighting the consensus that while AI has the potential to democratize financial advice in the short term, its long-term impact may reinforce existing wealth disparities due to differential access to advanced AI tools. The guests agree that human oversight remains crucial to ensure accountability and trust in financial advising.

• Jacob Bourne (16:49):
  "In the near term, AI may help close the wealth gap, but long-term advancements could further advantage the wealthy."

• Lauren Ashcroft (17:02):
  "I agree with Jacob's assessment on both the potential to close the wealth gap initially and the subsequent advantages for the affluent."

Rob Rubin concludes by thanking the guests and listeners, teasing the next episode scheduled for April 8th.

This episode of Behind the Numbers offers a comprehensive exploration of AI's burgeoning role in financial advising, balancing optimism for increased accessibility with caution regarding job impacts and systemic risks. The nuanced perspectives of Jacob Bourne and Lauren Ashcroft provide valuable insights for marketers, retailers, and advertisers navigating the digital transformation of financial services.