The job market is changing faster than ever. New technologies like AI and automation threaten to reshape the world of work as we know it.
Many people, from truck drivers to accountants don’t know if their jobs will still exist in a decade, let alone what their children might do for work in the future.
Those looking for a career path that will survive what has been termed the Fourth Industrial Revolution should look to financial services, according to industry experts. Financial advisers are among those whose jobs remain safe – but more than that, they will see increased demand going forward.
Will AI replace financial advisers?
Industry experts believe algorithms will never replace the inimitable value of a trusted human who can be held accountable by their clients. Responding to comments from the Tesla CEO, Elon Musk, who claimed emerging technologies will “replace all jobs”, Vivek Madlani of Multiply.AI said there was an “irreplaceable value of the human touch, especially when addressing the emotional aspects of financial decision-making.” And added:
“We do not see AI replacing all human advisers in so far as they are doing roles that are enhanced by the fact that they are human — e.g. the parts of their role that involve empathy, understanding, and a nuanced ability to read their client’s needs and wants.”
Madlani’s view is part of a consensus in the industry which believes. At the same time, AI will come to play a bigger role, it will be complimentary to the function of financial advisers, rather than a replacement service.
Is there a shortage of financial advisers?
There are currently not enough financial advisers as are needed to meet demand, with thousands of extra roles to be created as a result. The profession is facing challenges that are being felt across the job market, including the aging population, particularly in the West, but also particular challenges, like increasingly complex financial products. As a result, the average adviser is now handling more clients than ever.
However as per analysis in the IFA Magazine, while the client-to-adviser ratio does represent increased efficiency, potentially aided by new technologies, it cannot continue to grow exponentially. That creates a clear opportunity for anyone interested in becoming a financial adviser, as firms have seen their collective client bases rise by 50 per cent in recent years.
In the US context, the Bureau of Labor Statistics expects the number of financial advisers to grow by more than 50,000 by 2031, as per Investopedia, a rate that outperforms the average job. Simply put, more jobs means more opportunities.
Do financial advisers have good job security?
financial advisers are in high demand and this trend is expected to continue. Despite the rise of AI and automation, the unique human qualities required in financial advising ensure that these professionals will remain indispensable. With increasing client bases and job growth projections, financial advising offers a stable and promising career path.