Can AI replace wealth advisers?

Affluent investors still seek human judgement for major financial decisions.

Artificial intelligence (AI) is becoming a standard tool for wealthy investors in Singapore, but surveys suggest most still rely on human advisers when making key financial decisions.

A survey by HSBC Bank (Singapore) Ltd. found that 76% of 609 mass affluent and high-net-worth investors have used AI for finance and investment purposes. Among those users, 79% said they sought reassurance from a professional adviser, whilst 71% valued an adviser's strategic expertise.
 

The findings suggest investors are using AI to research ideas rather than replace professional advice.

The broader population shows a similar pattern. A survey by the Million Dollar Round Table found that 89% of 2,000 Singaporean adults had used at least one digital platform, including AI-powered chat tools, to manage their finances or obtain financial information. 

Sixty per cent said AI had influenced their saving and budgeting habits.

Despite that, 42% of respondents who work with financial advisers preferred meeting in person to discuss complex financial matters, whilst 41% favoured face-to-face meetings when making major financial decisions. 

The share rose to 50% during periods of market volatility and financial uncertainty.

Banks are increasingly deploying AI to support advisers rather than replace them.

“It really removes your administrative frictions... so that you can concentrate on engaging and planning with the client from an emotional standpoint," Wilfred Quek Siew Yih, group head of wealth management solutions for global financial markets at DBS Bank Ltd., said at the Singapore leg of the Asian Banking & Finance and Insurance Asia Summit on 1 July.

DBS said AI helps relationship managers tailor recommendations by reducing routine administrative work.

Other banks are expanding similar capabilities. OCBC Bank (Singapore) Ltd. and Bank of Singapore unveiled an agentic AI platform on 29 July that automates the collection, verification, and assessment of prospective wealth clients' information, letting relationship managers focus more on advisory work rather than paperwork.

Questions to ponder:

• Will AI remain a research tool, or will wealthy investors eventually trust it to make major financial decisions?
• How can banks use AI to improve wealth management without weakening the human relationships clients value most?