AI to shift broker focus to value-added functions

“Artificial intelligence has huge potential to make broker and adviser businesses more efficient and productive,” Dr Wallace told The Adviser.

“Currently on average, an employee spends one day per week searching for data or information that they need to do their job. Search functions and workflows should be automated, giving time back to the broker.

“Additionally, advanced analytics will assist brokers with making better decisions and potentially acting faster.”

Dr Wallace’s comments have preceded the 2022 Better Business Summit, where she will deliver a keynote address on how brokers could prepare for digital transformation, and how artificial intelligence and emerging technology could change financial services.

She will discuss how the new wave of digital transformation could impact the way brokerages operate, why digital transformation is essential for the future success of a broker’s business, and how brokers could leverage and integrate emerging technologies.

Noting that analysts such as Gartner have predicted that 40 per cent of financial services jobs would be automated within the next five years, Dr Wallace said there is potential for artificial intelligence to perform administration, analytics, and reporting tasks in the near future.

Alongside this, predictive analytics could prove useful across these roles to anticipate customer requirements or their intentions and future behaviour.

Personalisation engines could also be used to proactively create tailored package deals for individual clients, according to Dr Wallace.

“AI is particularly good at automating mundane and routine tasks, making workflows more efficient, performing advanced analytics, and assisting humans with making better decisions,” she said.

“From the customer’s perspective, AI will be very beneficial for automated property or mortgage searches, automated form filling, fast conveyancing and assessment of data.”

Dr Wallace said customers could become more self-sufficient in seeking advice and sourcing finance under the new digitised economy and business models, while new and emerging players could offer fully automated, AI-based solutions.

As new financial models and currencies such as crypto and non-fungible tokens enter the market, brokers and other advisers would have to focus on higher value-added functions, Dr Wallace warned.

Australia lagging behind the world

However, she lamented that the Australian financial services industry has not kept pace with the world on the level and speed of AI uptake, adding that the country appears to be “somewhat” risk-averse to trialling new and emerging technologies.

“This will need to change very soon if Australia wants to remain internationally competitive,” Dr Wallace advised.

“AI dissolves international boundaries as we have seen with Uber and Amazon. The same is likely to happen in the financial services sector with tech giants such as Google and Amazon playing in this sector.

“Australia must step up its investment into, creation of, and adoption of AI if it is not to become a backwater nation where other countries come to make money.”

As such, Dr Wallace remarked that brokers would benefit significantly from expanding their knowledge around artificial intelligence and other emerging technology, especially given the pace of change in technology.

“As artificial intelligence is the fastest growing tech sector in the world, it would be beneficial for brokers to understand, trial, and implement it in their businesses,” Dr Wallace said.

Furthermore, it is critical for brokers to understand the principles of responsible and ethical artificial intelligence to avoid any unintended harm or consequences, Dr Wallace said.

Dr Wallace concluded: “It would be great for brokers to step into ethical artificial intelligence leadership and to look for ways that it benefits customers and employees and causes no harm or unfairness.”

The Better Business Summit 2022 will be held in April, May and June across five states.

Themed “Digital Broker”, a variety of speakers will provide brokers with the tools and knowledge to harness technology to increase efficiencies and succeed in their businesses.

The Better Business Summit 2022 will be held in the following locations:

• Brisbane, 28 April 2022 at Sofitel Brisbane Central
• Sydney, 5 May 2022 at the Australian Turf Club, Royal Randwick Racecourse
• Adelaide, 12 May 2022 at the Adelaide Convention Centre
• Perth, 19 May 2022 at Crown Towers
• Melbourne, 2 June 2022 at Crown Towers

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For more information about the 2022 Better Business Summit including speakers and agenda, click here.

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