Artificial Intelligence (AI) technology is being adopted in many industries in New Zealand, including healthcare, finance, agriculture, and transportation. AI is being used in New Zealand to improve the agricultural sector’s efficiency, develop new financial products and services, and provide better healthcare to patients. AI is also being used in New Zealand to help improve the accuracy and speed of decision-making in various industries and automate many routine tasks.
As AI technology advances, we will likely see even more widespread adoption of AI in New Zealand and other countries worldwide.
One example of a New Zealand company using AI is Fonterra, the world’s largest dairy exporter. Fonterra is using AI to improve the efficiency of its dairy farming operations. The company is trailing an AI-powered platform that uses sensors and machine learning algorithms to monitor the health and productivity of cows. The system collects data on factors such as a cow’s activity levels, eating habits, and milk production and uses this information to optimise the cow’s health and diet. This has the potential to help Fonterra to increase the efficiency of its dairy farming operations, reduce costs, and improve the quality of its products.
The financial advice sector is no exception. One recent development that has caught the attention of many is the use of large language models like ChatGPT to offer an alternative to human financial advisers.
What is ChatGPT?
ChatGPT is a cutting-edge natural language processing system developed by OpenAI which has caught the world’s attention, gaining more than 1 million users in just a week. It is a type of AI system trained using deep learning algorithms and vast amounts of data. ChatGPT is designed to understand and respond to questions in human-like ways, making it well-suited for tasks such as providing simple financial advice or answering customer service inquiries.
Unlike traditional AI systems, which are often limited to a specific set of pre-defined responses, ChatGPT can generate unique, original responses to a wide range of questions. This makes it a powerful and versatile tool for many different applications.
So can AI such as ChatGPT replace us?
AI products such as ChatGPT can understand and respond to even complex questions in human-like ways, making them a genuine alternative for providing financial advice.
One of the key advantages of using AI for financial advice is its potential to provide advice in real-time. Traditional financial advice usually involves scheduling an appointment with a financial adviser who may not be available when you want them! On the other hand, an algorithm is always available to provide advice 24 hours a day, seven days a week.
Another advantage of using such services to deliver financial advice is that they can provide unbiased advice. All humans, including financial advisers, have their own biases and motivations, which may influence the advice a financial adviser gives. Conversely, AI is driven by algorithms and data to provide objective, unbiased advice.
Of course, there are some limitations that stop AI from replacing financial advisers. For one, it is not yet capable of providing advice on complex or specialised financial situations. It can also not provide the same level of personalised attention, empathy and support that a human financial adviser can. This last point is essential as financial advice is all about trust, which comes from getting to know clients and them trusting you based on your previous interactions with them.
Overall, the use of AI to provide financial advice is an exciting development that has the potential to revolutionise the way we give and receive financial advice. While it may not be suitable for all situations, it offers many benefits, including real-time advice, unbiased recommendations, and always-on availability.
As technology continues to evolve, we will likely see more and more people turning to AI and large language models for at least some aspects of financial advice.
