Imagine Financial Planning 2030

Allan RothImagine receiving an email like this:

Thank you for all you’ve done for me over the past couple of decades, but I’ve decided to terminate our financial planning relationship. Like many other people, I too will be moving to an artificial intelligence-based advisor.

Is this far-fetched? Though a few years ago I would have thought so, artificial intelligence (AI) is here and is a very disruptive technology. AI’s arrival will have an increasingly large impact on our lives. That includes investing and, especially, other aspects of financial planning.

As just one example, last month at the Morningstar Investor Conference, I met Mo, Morningstar’s new beta version AI chatbot. We had a nice discussion on investing. A couple of weeks later, on May 11, a Morningstar press release introduced Mo to the public. "AI has huge potential to support a better investor experience at scale, and this is just the beginning," said James Rhodes, Morningstar's chief technology officer and president of data, research, and enterprise solutions.

Not only do I agree with Rhodes that this is only the beginning, but AI’s potential is in being the bridge that integrates investing with other facets of financial planning, especially taxes but also risk management, and retirement and estate planning. These are where AI will have its greatest impact.