Why this adviser is using ChatGPT to help his clients

With its advanced ability to streamline and simplify content, AI chatbot ChatGPT could prove a useful tool in providing financial advice. 

According to Ben Neilson, founder and director of Neilson & Co Wealth Management in Queensland, it could assist with less complicated tasks that require publicly-accessible information, such as explaining how superannuation contributions worked and basic rules and limits to consider.

Neilson had previously been researching how the time to provide financial advice could be reduced as part of his PhD at the University of Southern Queensland and was curious about the AI chatbot when it was launched last November, later using it with clients in his practice.

“Practically speaking, if you can automate parts of your life so you don’t need to be involved, why not use it? From what I see, people seem to be all for it or completely against it, but why can’t you use some?” he stated.

“Why can’t you use the software to help with the work and then look over it? Why charge for 10 hours when you can do the work in one hour?”

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At his practice, the use of ChatGPT translated to quicker turnaround periods for documents and requests by simplifying the groundwork required. Clients were informed of its use and Neilson said they were content with this alongside his professional opinion.

“ChatGPT doesn’t understand implied theory, so if we were to talk about super in this case, it could provide a singular strategy but it doesn’t understand how to interpret cashflow and other information,” said Neilson, adding that created documents still received a once-over from an adviser before reaching clients. 

Much of his confidence around the use of ChatGPT in financial advice stemmed from his own PhD formal research which found the chatbot could compare favourably with strategies from other licensees.

When tasked to recommend a $10,000 non-concessional contribution to super, after spending some time teaching ChatGPT about the Corporations Act 2001, ASIC’s Regulatory Guides, and super, his research found ChatGPT’s strategy scored over 95% on compliance, accuracy, clarity, and persuasiveness. 

“I put ChatGPT’s content in a Word document and compared it against four other contribution strategies from four of Australia’s largest licensees,” he explained.

“Then I approached financial advisers, consumers and compliance officers, and I asked them ‘can you tell the difference between the documents?’ When asked if the ChatGPT recommendation had enough information to make a [financial] decision, they all came back with a resounding yes.

“So one hand, we have a super strategy through a normal process, which might cost $800 dollars, and the one with ChatGPT which took about 20 seconds and was free.”

Such implementation could widen the scope for improving financial literacy and regulatory adherence in financial planning, Neilson observed.

“Looking at financial services, I don’t think we should be charging what we’re charging because I don’t really think we’re worth it. 

“If you look at any decent adviser, they know what they’re going to do with you in about 25 seconds but for some reason, it takes weeks to get an SOA document out, and we seem to have to charge for this part in the middle.

“If you look at anyone in my generation, these additional requirements are things we don’t want to do anyway. In a, say, hourly wage model, if you call the office and it’s going to cost you $100 an hour for advice, and I can put this request into ChatGPT, I’m sending you an invoice for some six minutes. So to some extent, this is a win-win because I don’t want to waste my time while clients would get the information they wanted.”