Key Takeaways
- AI helps us spend less time on paperwork and more time with clients.
- Good financial planning still depends on human judgment and personal relationships.
- When it comes to financial planning, protecting your personal information matters just as much as using the latest technology.
Financial planning has always evolved alongside technology.
When I started my career, I had file cabinets full of paper folders and a calculator I trusted more than anything else. Today, nearly everything is digital. Secure client portals, planning software, and electronic signatures have made serving clients faster and more convenient.
Now we’re entering another period of change with artificial intelligence (AI).
I’ve been thinking a lot about what role AI should (and shouldn’t) play in my practice. While AI is changing how advisors work behind the scenes, it isn’t changing why clients come to us in the first place.
Firms across the profession are using AI to summarize meetings, analyze tax returns, flag planning opportunities, and speed up research.
I’ve tested a number of these tools myself, and the results have been mixed. Some have been genuinely helpful, while others have created more work than they solved.
Where AI Has Been a Big Help
One area where AI has made a noticeable difference is meeting documentation.
After client meetings, I used to leave with pages of notes and still worry I’d missed something important. AI helps organize notes, summarize key discussion points, and prepare meeting recaps much more quickly than doing everything manually.
That saves time, but it also helps me stay fully engaged while we’re talking.
Research is another area where AI has proven valuable.
Financial planning often involves digging into tax rules, retirement regulations, Medicare questions, charitable strategies, and other topics that don’t have simple answers. AI can quickly point us toward relevant information or help organize complex research so we can evaluate it more efficiently.
The important distinction is that AI is helping us start the research process. The recommendations we make to clients are still our own.
Where AI Still Creates More Work
Nearly every software company we work with now offers an AI feature. Each promises to save time, improve efficiency, or produce better analysis.
Every new tool takes time to learn, evaluate, and decide whether it’s worth adding to our workflow. Most also come with an additional subscription fee.
For example, we currently have three different AI-powered options for analyzing tax returns. One does an excellent job of identifying tax issues. Another creates stronger tax-planning scenarios and suggests possible strategies for optimizing taxes. A third offers its own take on both. Each has strengths, but none does everything well.
We’ve also tested software designed to automate data entry.
On paper, this sounds great. In reality, I often spend so much time checking its work that I could have entered the information myself just as quickly. That will probably improve over time, but today it still requires careful review.
The more detailed the task, the more closely we need to verify every result.
Right now, AI seems best suited to generating ideas, weighing options, and putting together polished presentations. It’s not sufficient for the detailed work.
Why Human Judgment Still Matters
Financial planning isn’t like asking AI to write a dinner recipe or suggest vacation ideas.
A retirement income strategy, tax projection, or estate planning recommendation involves real people making important financial decisions. Small mistakes can have meaningful consequences.
That’s why every piece of AI-generated work still needs a knowledgeable person reviewing it.
We think of AI as a very capable assistant. It helps organize information, generate ideas, and speed up certain parts of my work, but it doesn’t replace professional judgment.
Experience still matters when deciding which strategies fit a client’s goals, values, family situation, and long-term plans.
Protecting Your Privacy
One question we hear often is whether it’s safe to use AI when financial information is involved.
The AI tools we use at Hinman Financial Planning are selected specifically because they do not retain or learn from client information. Protecting your confidential financial data is something we take personally with every client.
If you’re using AI yourself, I encourage you to be just as careful.
Many free or consumer AI tools aren’t designed with the same privacy standards. Before uploading tax returns, account statements, or other sensitive financial information, take a few minutes to understand how that platform handles your data. If you aren’t comfortable with the answer, don’t share it.
Convenience should never come at the expense of your privacy. If you’re ever unsure whether it’s appropriate to use AI for a financial question, please ask us first rather than risk exposing personal information.
AI Is Saving Time More Than Money
Despite all the excitement around AI, it hasn’t become a money-saving tool for my practice.
Most AI software requires additional subscription costs. There are licensing fees, implementation costs, and time spent learning each new system.
What it does is give us more time to spend with clients.
We’re happy to make that trade. When administrative work takes less time, we can spend more of our day helping clients think through decisions, answering questions, and focusing on what matters to them.
Those conversations have always been the most valuable part of our work.
The Human Side of Financial Planning
One thing AI hasn’t figured out is how to understand what’s happening in someone’s life.
It doesn’t recognize the hesitation in someone’s voice when they’re thinking about retirement.
It doesn’t understand the emotions surrounding divorce, the excitement of becoming a grandparent, or the uncertainty that often comes with receiving an inheritance.
Those are the moments when financial planning becomes much more than spreadsheets, projections, or software.
Financial planning has always involved numbers, but it’s equally about listening, asking thoughtful questions, and helping people make decisions that reflect what matters most to them.
Technology can support that work, but it can’t replace it.
Let’s Talk About Your Plan
Technology will continue changing the way we deliver financial planning, and we’ll continue adopting tools that genuinely improve the client experience while maintaining the accuracy, privacy, and personal attention our clients expect.
If it’s been a while since we’ve reviewed your financial plan, we’d love to reconnect. We can schedule a time to talk and walk through any updates together. Whether you’re thinking about retirement, going through a life transition, or simply wondering if your current plan still fits your goals, we’re here to help you sort through it.
Frequently Asked Questions (FAQs)
Q: What’s AI’s role in financial planning?
A: AI is a helpful tool for organizing research, summarizing information, and speeding up certain tasks. But it can’t understand your personal goals, family dynamics, or values the way an experienced financial advisor can. That part of the work still comes down to a real relationship.
Q: Is it safe to use AI for financial advice?
AI can be a helpful tool for learning about financial topics, but you should be cautious about sharing sensitive personal or financial information. It’s also important to verify AI-generated information before making financial decisions.
Q: How are financial advisors using AI today?
A: Many advisors use AI to summarize meetings, assist with research, analyze financial documents, and improve efficiency behind the scenes. Human advisors still review the information and make the final recommendations based on each client’s unique situation.
Content in this material is for general information only and is not intended to provide specific advice or recommendations for any individual.
