AI may be all the rage today, but many financial advisors lack the skills to use it properly, according to a recent survey by Paro.ai, a financial industry technology and business consulting firm in Chicago.
Advisors have a long way to go before they can benefit from all the opportunities presented by AI, the firm noted in a recently released survey of 250 U.S. c-suite executives and senior level managers in the accounting and finance sectors.
In fact, 53% of respondents acknowledged that they lack advanced analytical skills within their teams to fully use AI.
At the same time, security is a top concern for many executives. AI cybersecurity and data security are the primary concerns for 54% of the respondents, even as 57% of respondents said their companies already are using AI.
“It’s essential for leaders to leverage the benefits of the AI-transformed finance function and implement solutions that act as a strategic catalyst to thrive in the future,” Anita Samojednik, CEO of Paro.ai said in a statement. “Today’s financial environment is complex and constantly shifting, and as a result internal finance teams are strained and struggling to provide the strategy needed to guide business decisions. Companies that don’t evolve run the risk of underperforming their peers and becoming less competitive.”
Almost half of respondents (49%) said their finance departments are not technologically equipped to bridge the AI proficiency gap. “This signals a need to bolster these capabilities so businesses can truly harness the potential of AI technologies,” Paro.ai said. “While AI promises transformative capabilities, it also brings a new set of challenges.”
While a majority of respondents said they have concerns about AI security, executives also are worried about a lack of human oversight, the costs of adopting and integrating AI into their operations and the lack of transparency for AI, the survey showed.
Despite the concerns 67% of respondents said they already use AI for predictive analytics and forecasting, 56% said they use it for enhancing internal workflow automation, and 54% use it to elevate personalization in their offerings.
The survey highlights “the dichotomy in the financial sector's current relationship with AI,” Paro.ai said. “There is palpable excitement about its transformative capabilities, but genuine reservations about its broader implications remain. With a substantial portion of businesses already capitalizing on AI's potential, skill gaps and cybersecurity concerns underscore the need for a more informed and holistic approach to AI adoption.”