It’s easy to feel overwhelmed with financial decisions. Every day we are bombarded with a persistent hum of what we should be doing with our money, how to rein in credit, how to afford to buy a house or save for retirement.
It’s often said that information is power, but too much information can be a problem. This continual hum means people are struggling to make the right decisions about their finances.
There is no doubt that technology has a useful role to play in transforming personal finance. For example, many banks now offer budgeting tools that track spending, categorise expenses, and even estimate future costs. These tools are helpful to see a quick snapshot of where money is going.
In addition, robo-advisers and algorithms now offer low-cost investment suggestions tailored to broad risk profiles. Innovations like ChatGPT and Gemini highlight how fast things are moving.
But here’s the catch: while AI is good at processing general data, it struggles with the personal side of things – your unique circumstances, goals, and the nuances of your life. This is where a human financial adviser comes in.
Real advice isn’t just about investing. It’s about managing risk, planning for the future, and helping you make big decisions that can impact the rest of your life.
When speaking with a real financial adviser, you can ask questions, challenge ideas, and work through the emotional and practical side of things like estate planning, insurance, or choosing between superannuation strategies. You might also learn about other options – like property or agricultural investments – products that may not make it into generic advice tools.
A good adviser takes the time to understand your values, long-term goals, and the emotional drivers behind your financial behaviour. You simply can’t get that kind of insight from an app.
Ironically, the rise of AI may be partly driven by a decline in access to human advisers. Since major regulatory reforms, the number of registered financial advisers in Australia has halved. As a result, more people are turning to digital tools even when human guidance would better serve their needs.
On January 1, 2025, Generation Beta arrived, the first generation born into a world where AI is woven into everyday life. It’s an exciting era, no doubt. But even as we embrace new technology, there’s still tremendous value in having a real conversation with someone trained to help you navigate life’s financial complexities.
So yes, use the apps, check the data, explore what’s out there. But when it really matters, talk to a human. Your financial future is too important to leave entirely to machines.
Article authored by HLB Wealth Financial Adviser Brendan Bate, who can be contacted at bbate@hlbwa.com.au