Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that a recent survey indicates that investor trust in human-provided investment advice increased, while trust in Artificial Intelligence (AI)-powered investment advice declined, compared to the prior year’s results. Further, the survey found that while relatively younger clients were more likely to trust AI-provided advice than their older counterparts, this group also experienced a sharp drop in trust in AI advice during the past year (perhaps as they have more exposure to its strengths and weaknesses?). Which, altogether, suggests that investors appear to continue to impose a ‘trust penalty’ on AI advice platforms, giving human advisors the opportunity to lean into what they do best, from building trust in personal relationships to giving clients the sense that they maintain control in the relationship.
Also in industry news this week:
- The IRS recently finalized rules for the car loan interest deduction introduced in the One Big Beautiful Bill act, offering financial advisors the opportunity to add value by helping clients determine whether they might qualify for it and, at a broader level, whether financing a new car purchase is the best course of action given their personal circumstances
- A survey indicates that individuals with a financial advisor are much more likely to have a plan in place to address a potential long-term care need and shows how the impact of care responsibilities (both in terms of time and money) can frequently fall on loved ones
