Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals. Know more

Kotak e-Term

Protect your family's financial future. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and life cover. Know more

Kotak e-Invest

Insurance and Investment in one plan. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Will AI be Your Future Financial Adviser? What Role Will Humans Play?

The rapid advancements in Artificial Intelligence (AI) and Machine Learning have sparked considerable speculation about the future of financial advisory services. Get the right answers here.

  • Jun 15, 2023

Updated on 15 June 2023

The rapid advancement of Artificial Intelligence (AI) has brought forth an array of opportunities and possibilities across various industries. One such area is finance, where AI is poised to revolutionize the way we manage our money and make investment decisions.

    Key takeaways

  • By automating the investment process, robo-advisors have made it more accessible, cost-effective, and convenient for individuals to manage their investments.
  • AI financial advisers have the ability to process vast amounts of financial data in real-time.
  • AI algorithms can quickly analyze market trends, historical data, news events, and other relevant information to identify investment opportunities or risks.
  • Human advisers excel at understanding clients’ unique circumstances, goals, and values and tailoring advice accordingly.
  • Rather than viewing AI as a threat to human advisers, it is more productive to envision a future where AI and humans work collaboratively.

With the ability to process vast amounts of data, identify patterns, and make predictions, AI has the potential to become a powerful financial adviser. But what does this mean for the traditional financial advisors? Will AI completely replace human advisers, or will it continue to play a crucial role alongside these intelligent machines?

The Rise of AI in Financial Advice

AI has already made significant inroads into the financial industry. Robo-advisors, which are automated investment platforms that provide algorithm-based financial advice, have gained popularity in recent years. These platforms employ artificial intelligence algorithms to analyze a person’s financial goals, risk tolerance, and investing preferences before recommending an optimized portfolio. By automating the investment process, robo-advisors have made it more accessible, cost-effective, and convenient for individuals to manage their investments.

Challenges with AI Advisers

Despite their potential benefits, AI advisers also pose unique challenges that must be carefully considered. The reliance on AI systems for critical decision-making processes introduces a set of complex issues that require careful management and ethical considerations. Let us now explore some of the key challenges associated with AI advisers and the implications they have for individuals, businesses, and society as a whole.

Lack of Human Touch

One of the primary challenges with AI financial advisers is the absence of human touch. Some individuals may prefer human interaction and the personalized experience that comes with it. While AI can simulate conversation and adapt to user preferences to some extent, it cannot completely replicate the empathy and intuitive understanding that human advisers offer. Striking the right balance between AI automation and human interaction remains an ongoing challenge.

Interpretation of Complex Events

Although AI algorithms excel at processing vast amounts of data, they may struggle to interpret complex events that involve nuanced human behavior or unpredictable market dynamics. While AI financial advisers are continuously improving, certain circumstances, such as major economic shifts or geopolitical events, may require human expertise to comprehend their impact accurately. Collaborative efforts between AI and human advisers can help mitigate this limitation.

Trust and Security Concerns

The adoption of AI in financial advisory services raises concerns regarding data privacy, security, and trust. Clients may worry about the potential misuse of their personal financial information or the security of their transactions. Addressing these concerns through robust data protection measures, encryption protocols, and transparent communication about data handling and usage is essential for building trust and ensuring the widespread acceptance of AI financial advisers.

The Benefits of AI Financial Advisers

In recent years, the rise of Artificial Intelligence (AI) has revolutionized various industries, and the financial sector is no exception. AI-powered financial advisers are changing the way individuals and businesses manage their finances, offering numerous benefits and addressing some of the long-standing challenges in the field. While there are still some obstacles to overcome, the advantages of AI financial advisers far outweigh the current limitations.

  • One of the most significant advantages of AI financial advisers is their capacity to analyze massive volumes of financial data in real-time.
  • AI algorithms can quickly analyze market trends, historical data, news events, and other relevant information to identify investment opportunities or risks. This speed and efficiency can give AI an edge over human advisers in terms of making timely investment decisions.
  • Moreover, AI financial advisers can be highly objective and free from human biases. Emotional biases, such as fear or greed, can often cloud judgment and lead to poor investment choices.
  • AI algorithms operate purely based on data and predefined rules, eliminating the influence of emotions.
  • This objectivity can potentially result in more rational and disciplined investment strategies.

The Role of Humans in Financial Advice

While AI financial advisers offer numerous benefits, it is unlikely that humans will be completely replaced in the investment advisory field. Despite the advancements in AI, there are certain aspects of financial advice where human expertise and judgment remain invaluable.

Relationship Building

Establishing a personal connection and building trust with clients is a crucial aspect of financial consultation. Human advisers excel at understanding clients’ unique circumstances, goals, and values and tailoring advice accordingly. The ability to empathize, communicate, and provide emotional support during challenging financial times is an essential human touch that AI cannot replicate.

Complex Financial Planning

While AI can analyze data and provide investment recommendations, complex personal financial planning often requires a deeper understanding of individual circumstances. Humans can provide personalized advice that takes into account factors beyond investment portfolios, such as estate planning, tax optimization, and retirement strategies. These nuanced decisions involve a holistic understanding of a client’s financial situation, which is an area where human advisers excel.

Ethical Considerations

Financial advice involves making decisions that go beyond financial gains and losses. Human advisers are equipped to navigate the ethical considerations and moral dilemmas that arise when advising clients. They can provide guidance that aligns with a client’s values and preferences, helping them make decisions that are not solely driven by financial returns.

Adaptability and Innovation

The financial landscape is constantly evolving, with new investment products, regulations, and market dynamics emerging. Human advisers have the ability to adapt to these changes, stay informed, and continuously update their knowledge and expertise. They can also stay relevant by incorporating new financial strategies and technologies into their advice, ensuring clients receive the most relevant and up-to-date guidance.

The Synergy of AI and Humans

Rather than viewing AI as a threat to human advisers, it is more productive to envision a future where AI and humans work collaboratively. AI can assist human advisers by automating repetitive tasks, analyzing vast amounts of data, and providing valuable insights. This symbiotic relationship allows human advisers to focus on what they do best, building relationships, understanding client needs, and providing personalized advice. By leveraging the strengths of both AI and human advisers, the financial advice industry can offer a more comprehensive and impactful service to clients.

The Verdict

AI is set to play a significant role in the future of financial advice. Its ability to process vast amounts of data, make data-driven decisions, and provide objective insights make it a valuable tool for investors. However, the human touch remains indispensable in investment advisory services. Human advisers bring empathy, understanding, and ethical considerations to the table, providing personalized advice and building long-term relationships.

The future of financial advice lies in the synergy between AI and humans, where technology augments human capabilities and enhances the overall client experience, and humans add the personal touch to it.

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Can You Invest in Both Term Insurance and ULIP?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

ULIP Plan as a Gift

5 Reasons to Buy ULIPS for a Financially Secured Future

Learn About Safe Investments with High Returns in India

Asset Allocations in ULIP - Know the Top Benefits

Know Why You Should Stay Invested in Your ULIP Plan

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

How to Choose the Best ULIP Plans to Invest in 2022?

यूलिप और उनके प्रकार क्या हैं?

What are Fixed Maturity Plans and Why Should I Invest in Them?

How to Start Saving Money in 10 Simple Ways?

What are the Maturity Benefits in a ULIP Plan: Fund Value Sum Assured or Only Fund Value?

ULIP Plan or Traditional Insurance Plans - Which is better?

How To Track ULIP Performance?

Is Life Insurance Investment Worthy Enough

How to Calculate Your ULIP Returns?

What is the Time Value of Money (TVM)?

Top ULIP Myths That You Must Stop Believing In

What are the things to consider before buying ULIPs?

यूलिप प्लान में परिपक्वता लाभ क्या हैं: फंड वैल्यू सम एश्योर्ड या ओनली फंड वैल्यू?

ULIP Vs Life Insurance Plan Know the Difference

Single Premium ULIP or a PPF - Which One is Better?

What is SIP Calculator, and How it Works?

Planning For Children's Future

Why are ULIPs One of the Best Tax Saving Instruments?

Why ULIP is Better Investment for Long-Term Wealth Creation?

Factors Affecting Share Prices In The Stock Market

यूलिप के फायदे (Benefits of ULIP in Hindi)

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

How to Fix the 9 Most Common Financial Problems Your Family is Facing

Top 11 Investment Plans Available in India

What is a Bond Fund and How It Works?

How to Create Short-Term and Long-Term Wealth with ULIPs - Kotak Life

How is the Compound Annual Growth Rate (CAGR) Calculated in ULIP?

Best Investment Options in India in 2022

Does Rupee Cost Averaging Work In Unit-Linked Insurance Plans?

What's Better for Your Child's Education? Child Plans or Mutual Funds?

Which is Better – FD, Mutual Fund, SIP, or ULIP?

Is ULIP A Good Investment Option?

Top 5 Principles That Need to be Followed for Wealth Creation

What is Lock-In Period in ULIPs?

What is a Child Money Back Plan, and How Does it Work?

How to Manage Your Portfolio Like a Professional?

How to Manage Inheritance Money?

What are the Best Investment Options For Females?

Receiving regular payouts at various stages of life

Why Do You Need A ULIP Plan - All You Need To Know

All you need to know about Fund Switching in ULIPs

Is the surrender value of ULIP taxable?

How and when should you exit from bad-performing ULIP?

6 Important Tips to Maximize Your Gains with ULIP Investments

What is NAV in ULIP, and How is it calculated?

Can ULIP Help in Achieving Short-Term Financial Goals?

First Job? Here are Some Tips on How to Manage Finances

ULIP Plans Riders You Should Know About

All you need to know about claiming maturity proceeds from Ulip

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

How to Use Recurring Investment Strategies to Build Wealth?

Difference Between ULIP and Endowment Plan?

What Is a Credit Score? Definition, Factors, and Ways to Raise It

Is ULIP a Complex Financial Product?

Difference Between Guaranteed Savings Plan and ULIP

How has ULIP Grown Over the Last 3 years?

What is Premium Redirection in ULIPs Plans | ULIP Insurance Plans | Kotak Life Insurance

Best Investment Options to Cover Your Child's Education

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

How Safe is it to Invest in ULIP plans?

5 Reasons to Have a Child Education Plan

What are the Best Investment Options for Students in India?

How Can ELSS Funds Help You Save Tax & Create Wealth?

Learn About Safe Investments with High Returns in India

Develop an investing plan

Importance of Portfolio Management

Planning For Son or Daughter's Wedding

8 Important Tips to Maximize Gains with ULIP Investments

Best Investment Plans for Children - Secure Your Child's Future

Different Types of ULIP Investments in India

What is a Savings Plan and What are is Benefits?

ULIPs: Suitable for all

Why Should You Invest in NPS?

Difference Between Passive and Active Investing

How to Build a Strong Financial Foundation For the Future?

What are the Minimum and Maximum Investments in ULIP?

ULIP Capital Gain Tax: Check Tax Norms for Capital Gain on ULIPs

Do ULIPs Give Good Returns On Investments?

ULIP vs FD - Which is Better and Why?

8 Charges in ULIP That You Must Know

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

What Is Social Impact Investing and How Does It Benefit Society?

How Is ULIP Different from Other Life Insurance Plans? Where Can I Invest - ELSS, ULIP, or PPF?

How ULIPs can help you achieve your financial goals

यूलिप के फायदे और नुकसान क्या हैं?

What is Money Management? Definition & Example

4 Rules To Keep In Mind To Secure Your Child’s Future Financially

Understanding ULIP Risks: What are the Odds of Losing all my Money and Projected Returns?

ULIP Tax Benefits: यहां निवेश करने पर मिलते हैं 5 बड़े फायदे

Why Should I Invest in ULIP?

Will You Need to Withdraw or Surrender Money From ULIP

What are loyalty additions, and how do they work in a ULIP?

ULIP Frequently Asked Questions (FAQ) - Kotak Life

How Do One-Time Investment Plans Work?

What is Fund Value in ULIP?

What are the Best Investment Options for Young Adults?

Difference Between Linked and Non-Linked Insurance Plans

FAQs on Taxation of ULIPs

What are Index Funds, and How Do They Work?

Endowment Plan vs Fixed Deposit?

ULIPs Investment – A Boon or Bane?

ULIP Benefits You Can Avail from Early Investing

Early Investing and the Power of Compounding

What is ULIP Plan, and How Does it Work?

Balancing Investment Between Risk and Return on Investments

What are Some of the Safest Investment Options in India?

5 Reasons Why ULIP Plans are One of The Best Retirement Planning Instruments

Tax-Deferred Savings Plan: Overview, Benefits, Works

Which is a Better Investment - Mutual Funds Or ULIP?

Here's are the uses of ULIP your must be aware of

What is ULIP and Its Benefits?

What Happens If I Stop Paying My ULIP Policy Premium After Paying the First Premium? Will I Still Get The Return?

Planning Financial Goals and Objectives of Financial Planning

Got a Salary Hike? Here’s How to Plan your investment further

The lesser-known facts about ULIP policy that customers should be aware of?

What is ULIP Renewal?

यूलिप में 8 शुल्क जो आपको अवश्य जानना चाहिए

How To Invest Money In ULIP?

Is This The Right Time To Invest In ULIP? Why or Why Not?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

What are the Best Short-Term Investment Plans with High Returns?

ULIP As An Investment Option For Senior Citizens

Can I Surrender My ULIP Policy after 2 Years?

How Increasing Your SIP Every Year Helps You Reach Your Financial Goal Sooner?

ULIP policy: What happens when you stop paying ULIP policy premium during lock-in period

Best Investment Plans For You To Invest In 2023

Four Financial Lessons from The Vedas on Living Life to The Fullest

Investments Options to Buy a house in India

What is Savings and the Importance of Saving Money

Can ULIP Policy be Transferred?

How to Apply for Death Claim Benefits in ULIPs - Kotak Life

What Is Financial Planning?

Why ULIP Should Be a Part of Your Investment Portfolio?

Can NRIs Invest in ULIP Plans Offered in India?

Why Are ULIPs Called Flexible Investments?

How Can ULIPs Help You Plan for Your Child's Future?

Top 10 Investment Strategies to Create Wealth

वित्तीय संपत्तियां और उनके प्रकार

ULIP Withdrawal Conditions - Before and After 5 years

How to Increase Net Worth Along with Family Protection

How to Set Financial Goals for Your Future

Top 5 Investment Options in 2022 for Healthy Returns

How Much Wealth Can You Create From ULIP in 10 years?

Savings Plan for Grandchildren

Can You Have ULIP Plan and Health Insurance Plan Both?

यूनिट लिंक्ड इंश्योरेंस प्लान में लॉयल्टी एडिशन कैसे काम करते हैं

Here's Whether You Should Link ULIP Plan with your Term Insurance

ULIP NAV - Everything You Need to Know

Long Term Savings Plan - Best Savings Investment Plans in India

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

What are ULIPs and their Types?

Customising investments to manage your wealth

Planning for Your Child's Higher Education? Explore These Investment Options

Successful Financial Planning for Urban Women

5 Best Long Term Investments To Add To Your Portfolio in 2023

Here's Myths on Investments in ULIP Plans

Building wealth through regular investing

How to Cancel ULIP Policy?

Corporate Bonds: Meaning, Types & Benefits

How Much Wealth Can You Create from ULIP in 10 years?

Benefits of ULIP as a Child Insurance Plan

How to Save Money from Salary?

What are the Best Investment Options for Beginners or Amateur Investors in India?

What is the Estimated Return Percentage on ULIP? Do Investors Get Compound Interest?

Rate of Interest on Different Investment Plans in India

How to Plan your Investment to Achieve Periodic Financial Goals?

What is Mutual Funds? | How Mutual Funds Work, Definition

What is Compound Interest, And How Do I Calculate it?

Investment Options for NRIs in India

Do You Know the Difference Between Savings and Investment?

ULIP Investment Benefits You Must Know

What is Equity Mutual Funds: Meaning, Types & Benefits

Are Money Back Policies Helpful? A Complete Guide

Know How to Invest at Every Age for Larger Returns

How Can ULIP Plan be as an Investment for Your Child

What is Partial Withdrawal in ULIPs?

Best One-Time Investment Plans in India

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

Creating a second source of income with life insurance

What are Financial Assets & their types?

Which are the Best ULIP Plans in India for Children?

Are Gains from ULIP Sale Taxable?

What is Direct Investment and its Types?

How to Plan Your Child's Education - A Step-by-Step Guide

How to Make Your Financial Portfolio?

Safe Investment Options with High Returns for FY 2018-19

What are the Advantages and Disadvantages of ULIP?

Are Investment Returns Guaranteed in a ULIP?

Why Should You Build an Emergency Fund?

Here's Why it's a Good Time to Explore ULIPs as an Investment