ChatGPT Is A Great Tool For Planning Your Retirement, But It Isn't For Everyone.‍

ChatGPT has become a media darling. It is no secret that chatbots have become another social-media influencer, as well as a modern-day Oracle of Delphi for some people. 

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My curiosity prompts me to ask a question. What should I do to prepare for a longer life?

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It seems as if the text is flying across my screen at a maniacal pace. In less time than it took me to type my eight-word query, a nearly 600-word response appears.

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The artificial intelligence bot provides a remarkably comprehensive response, advising exercise, nutrition, mental activity, and retirement planning to ensure my financial security, as well as recommending long-term care.

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I dive deeper into the subject. How should I plan my retirement? 

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The bot gives a neat, clear, and numbered outline of retirement plans at lightning speed.

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Is there a limit to how far this bot can go?

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In addition to this, I propose a more nuanced hypothetical question: If a 65-year-old retiree had $1 million in savings, how would he or she be able to live comfortably?

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With the click of a button, ChatGPT provides an overview of the range of options as well as caveats that one might need to consider when planning for retirement with a million dollars in the bank.

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Would it be true to say that retirement and financial professionals are about to be automated out of a job? It is possible, but only if the business of advice does not change to embrace the profoundly human side of advice, as well as the emotional side as well.

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ChatGPT and other emerging generative AIs will revolutionize the financial and retirement advice industry, not just because of their capabilities, but also because they will change client expectations. In spite of decades of industry positioning that financial professionals are here to remove emotion from money decisions, advisers must now embrace being human.

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Numerous and dire studies predict that AI will replace our jobs. Drivers of trucks and transit vehicles are waiting for the day when autonomous vehicles will become the norm. The fast food industry is being replaced by robots. There are stories written by AI that are being read by journalists and even novelists. The drafting of legal briefs is no longer done by young lawyers, but instead by computer programs. It is now even possible for computer programmers to write code without having to use their hands.

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It is instead better for advisers to embrace their human side rather than compete with technology, according to a closer examination of the two professions. In the past few years, online booking sites, crowdsourced advice, and other automated tools had many writing the end of the travel agent profession. The travel agency industry is alive and well today, despite disruptions and displacements.

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Travel agents who are successful do not compete with technology; instead, they leverage it to deliver personalized advice that AI cannot provide at this time. Personalized insight is the new premium service, rather than simply ticketing and itinerary planning.

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Having said that, one Florida-based travel agent noted, "We have seen our business evolve over the last decade. While fewer people seek travel agents for simple trips, such as buying a train or plane ticket between cities, clients are now seeking someone to assist them in sorting through the complexity of travel.”

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Booked travel has become a transactional business that reduces the stress of planning a family trip that has to be perfect, navigating the intricacies of international travel involving visas, vaccinations, and other requirements, arranging travel with multiple destinations and close connections and providing clients with on-the-ground knowledge of destinations tailored to their unique preferences.

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Rather than just selling trips, travel agents are now stress managers, curators, educators, and yes, sales outlets for travel experiences.

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Diagnostic results, such as X-rays, are assessed by physicians using AI. Not only do these intelligent systems provide a second set of eyes, but AI also frees up physicians' time so they can spend more time with patients and explain their results empathically. Moreover, intelligent systems enable doctors to build deeper relationships with patients to better understand how their overall well-being is impacted by other events in their lives.

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AIs like ChatGPT and others provide content, not real-time conversation.

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Fintech developments, which some believed would meet client needs with an endless array of calculators and planning tools, have met with less than glowing success. Clients find these systems transactional rather than personal. The conversation goes beyond merely exchanging information, it involves sharing feelings, meanings, and affirmations that the person you're speaking with understands you.

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High-performing advisers understand their job goes beyond offering plans, portfolios, and projections. Intelligent systems are increasingly delegating these functions. Despite clients expecting superior money management, Compass Financial Group's Richard Hill observes that "people want empathy and crave a human touch" that can provide explanation, context, and reassurance. 

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It has been suggested by Patti Brennan of Key Financial that clients are looking for someone who is not only focused on managing their money, but people who are also focused on helping them to achieve their life goals. “They really want to know that they have someone they can count on in times of need; someone who they can rely on to act as an advocate for their futures and to improve their quality of life." 

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It is inevitable that advisers will have to evolve along with AI as it continues to evolve. Daxs Stadjuhar, National Managing Director of Mariner Advisor Network, comments that in order to remain relevant, advisers will have to continuously define and focus on the experience they provide to their clients.  

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As technology changes, Nicholas Serenyi of Morgan Stanley advocates the argument that “advisers will need to work hard to improve the value proposition they offer and demonstrate that they are capable of providing better advice than a robot as new technology becomes available.”

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Advice is certainly going to be a high-tech business in the future, but it will also require a high touch in order to succeed. With an ever-increasing life expectancy and an ever-increasing number of yearnings for more information, advisors will find that a greater percentage of their time will be spent serving as educators, coaches, and even navigators to help people anticipate what may occur in the near future.

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Algorithms make terrible conversations, at least for now.