There is also a carbon cost to using AI, with data centres and systems needing immense energy to run and cool, of which investors also have to be aware, McPartland added.
Also at the conference, Ian McKenna, founder and director of F&TRC told delegates AI was not here to take over the whole advice process, but to reduce the time-consuming admin processes and technical form-filling so that more advisers can serve more clients, more cost-effectively.
He commented: "We need to recognise the level of change and see that as an opportunity right now for financial advisers to reach more clients."
Push towards tech adoption
This warning comes as data from FE Fundinfo revealed that 55 per cent of financial advisers have increased their technology spending over the past year, with 40 per cent planning to spend more in the next 12 months.
The most popular tech purchases were: cashflow forecasting software (92 per cent); risk profiling (92 per cent); and back-office record keeping (75 per cent).
According to FE Fundinfo, although only 15 per cent of advice firms currently use AI, 67 per cent said they were considering it, primarily for automating tasks and summarising meeting notes.
