Human connection is critical in the advice process

Our opportunity to use artificial intelligence (AI) in everyday life seems to accelerate yearly with an ever-growing mix of apps, tools and processes that promise to make our everyday lives easier.

There’s no denying that AI has become so integral to our daily lives that it’s hard to imagine life without it. From help spotting traffic delays with live reporting on Google maps, through to tailored playlists on your smart speaker – we just can’t get away from AI. As a result, we’re now seeing a generation of consumers who are entirely at ease using digital tools and AI as part of everyday life. 

Yet research has shown that only 27% of consumers trust AI to help them make financial decisions. Reassuring news for advisers.

A new generation of consumers who are digitally fluent, emotionally affected by the economic climate and increasingly aware of their financial vulnerabilities still look to adviser expertise for reassurance, context and personal guidance. This is especially apparent when it comes to protection and their long-term financial security.

The use of AI in financial decision making

There are a number of ways that AI is transforming financial advice. Consumers have ready access to conversational AI assistants that can be used to manage their personal finances. Helping to set, and stick to, budgets seems like an obvious starting point with many of the online banks providing access to tools within their own apps. But what about when considering, and then buying, protection products? How much trust is given to the answers provided?

The latest AMI Protection Viewpoint report highlights that just 35% of consumers trust the use of AI to provide advice on which option is the most suitable. Fewer still (just 27%) trust AI to make a final decision.

This is where the advice process is critical – adding expert reassurance from advisers through real conversations, listening to concerns and offering expert guidance. 

And consumers agree with 71% saying that human connection is important when buying protection insurance.

Advisers bring what technology can’t 

AI only responds to the questions it is asked. Without clear prompts, it struggles to add meaningful context or nuance to conversations about protection products. Asking ‘which life insurance product is best for me?’ without adding details about spending habits, employment, family life and what is important is very unlikely to provide satisfactory results. And questions around why life insurance matters when buying a new home, or why income protection should be reviewed after a promotion, can easily be missed unless explicitly raised. 

The human in the advice process is able to understand the context of words their clients use by being fully present and listening. By listening not just to what’s being said, but to the exact words their client is using, and to the tone of their voice, an adviser can really understand what causes their client concern.

It’s clear that consumers need reassurance and clarity. They need nuanced conversation rather than information presented to them on a screen. The adviser will ask appropriate questions that challenge assumptions and draw out what’s important, considering budgets and expectations of the product bought. 

As AI becomes more embedded in financial services, advisers have a real opportunity to let the technology handle the heavy lifting so they can focus on what truly matters, which is meaningful conversations that help clients feel understood, supported, and confident in their choices. AI can enhance the protection journey, but it can’t replace the reassurance clients feel when they speak to someone who genuinely understands their circumstances.

Strong client engagement and open dialogue are at the heart of trusted relationships. And the real strength in having these open conversations is in the ability to make different products easier for clients to understand, naturally frame them around key life events, and tailor policies to fit each individual’s unique circumstances. 

Even more critically, empathy and support are needed – especially at point of claim. And this is something the human adviser can excel at.

Where AI is helping the advice process

There’s no doubt that being human and present at client conversations takes time. So why not lean on technology and AI to help perform some of the more routine admin tasks?

Advisers are seeing the value of AI first‑hand with online tools from providers, all of which help cut the burden of office admin, speeding up eligibility checks and supporting ongoing client communication. 

The introduction of online portals has allowed advisers to get faster, more confident underwriting decisions for clients, and have allowed for a slicker onboarding processes at application stage. Medical requests from GP surgeries have been streamlined with the introduction of services like iGPR, giving advisers greater visibility and improving communication with members. And rules engines can assess claims, enhancing service efficiencies, and reducing end-to-end turnaround by tailoring claims questions.   

There’s no doubt that the use of AI and tech is reducing administration and wait times, all of which allow advisers more time to have meaningful conversations. And with one in five consumers dropping out of the buying process1, we all need to work towards improving engagement.

Adding value through conversation

Just 27% of UK adults have life insurance and 8% have income protection which means that 7 in 10 people are navigating life without a financial safety net. A gap that often exists because consumers haven’t been spoken to in a way that feels relevant to them. From blended families, LGBTQ+, carers, freelancers, and neurodivergence – there’s no such thing as one conversation fits all. 

By fully understanding the flexibility within products, an adviser can shape and guide a conversation that allows for a truly tailored policy to be created. And once the policy is in place, revisiting those conversations is key. Lives change and it’s important to keep checking that the cover chosen is still relevant.

Staying up to date with product enhancements is another way that advisers can add value. Knowing which providers offer flexible underwriting or have more accessible policies will build trust with clients who have perhaps been refused cover elsewhere. Understanding which conditions are commonly accepted and which providers have a more progressive approach may allow those who may have previously been declined to get cover.

And most importantly, frame all conversations positively. Through open and honest conversation, advisers can focus on what’s possible and can emphasise the value of a small amount of cover over nothing at all. And rather than letting potential customers walk away unprotected because they can’t find, or afford, what they thought they needed, they’re helping them to see the true value of expert advice.