Will ChatGPT, artificial intelligence replace financial professionals any time soon?

By Steven A. Morelli

Will artificial intelligence replace financial professionals any time soon?

No. Even ChatGPT says so.

But even artificial intelligence might have a difficult time accurately answering that. For one thing, ChatGPT can’t be trusted for accuracy just yet. For another, change is hard to predict because it is happening exponentially, by multiple orders per day. ChatGPT itself garnered a million users in five days. It took Facebook and Instagram two years to do that. And the chatbot is learning with each query.

Let's ask ChatGPT

What is ChatGPT? Well, how about we ask ChatGPT?

Question: What is ChatGPT?

ChatGPT: ChatGPT is a conversational AI model developed by OpenAI. It is based on the GPT-3 (Generative Pre-trained Transformer) model, which uses deep learning to generate human-like text. ChatGPT is trained on a large dataset of conversational text and can generate responses to natural language inputs, such as questions or prompts. It can be used to build chatbots, virtual assistants, and other conversational AI applications.

Is artificial intelligence an existential risk for financial advisors and life insurance agents? Humans are a little anxious about the prospect. A recent Forbes article suggested that ChatGPT shows that AI is likely to replace the mundanity of finance but not the necessary human touch. Expect AI to provide tools for advisors and individual investor, not the guidance that people need to make decisions.

That is a common theme running through opinion on AI’s impact on advising – even ChatGPT agrees.

Question: Will AI replace financial advisors?

ChatGPT: It is possible that AI could replace some of the tasks currently performed by financial advisors, such as portfolio management and data analysis. However, it is unlikely that AI will completely replace human financial advisors, as many clients still prefer to have a personal relationship with their advisor and may value the human touch in financial planning and decision-making. Additionally, there are certain tasks that AI may not be able to perform as well as humans, such as providing emotional support and understanding a client's personal financial goals.

Well, how about life insurance agents?

Question: Will AI replace life insurance agents?

ChatGPT: It is possible that AI technology could eventually replace some aspects of the work done by life insurance agents, such as providing information and answering customer questions. However, it is unlikely that AI will completely replace the role of life insurance agents as they also provide personalized advice and guidance, and build relationships with clients. Additionally, complex and unique situations may require the expertise and judgement of a human agent.

And what happens when a person asks ChatGPT about products? Let’s take annuities for example.

Question: Should I buy an annuity?

ChatGPT: It depends on your personal financial situation and goals. Annuities can be a good option for those who want a guaranteed stream of income in retirement and want to protect against the risk of outliving their savings. However, they can also come with high fees and penalties for early withdrawal, so it's important to carefully consider the terms and conditions of the annuity before making a decision. It's recommended to speak with a financial advisor or professional to determine if an annuity is the right choice for you.

Question: Are annuities too complicated?

ChatGPT: Annuities can be complex financial products that may not be suitable for all investors. They involve a contract between an individual and an insurance company, in which the individual makes a lump-sum payment or series of payments and the insurance company promises to make regular payments to the individual in return. The terms and conditions of annuities can vary widely, making it important for individuals to thoroughly understand the features and risks before making a purchase. Additionally, annuities often have high fees and penalties for early withdrawal, which can make them less desirable for some investors. Overall, annuities may not be the best option for everyone, and it is important to consult with a financial advisor before making a decision.

Basically, it all comes back to human advisors. Of course, this all could be a smokescreen to keep humans’ defenses down. But insurance companies have found in their forays in AI that they have had to include humans at some point in the process for certain products and cases.

ChatGPT gets creative

At this point, it appears that ChatGPT is still in the somewhat helpful and amusing phase. To that end, we asked ChatGPT to do some creating writing on annuities.

If you'd like to read some ChatGPT annuity poetry, lyric writing, and Shakespearean text, check out this article.

Steven A. Morelli is a contributing editor for InsuranceNewsNet. He has more than 25 years of experience as a reporter and editor for newspapers and magazines. He was also vice president of communications for an insurance agents’ association. Steve can be reached at [email protected].