After watching the threat of AI hit software/data names over the last 10 days, it has now reached our sector. The launch of a relatively basic CRM/productivity tool, powered by AI, into a US adviser platform has captured the imagination that we will all be taking our financial advice from ChatGPT and this will put pressure on growth/returns in the sector. Candidly, we think that this fear is overblown. The sector already has plenty of digital workflow and productivity tools (some with and some without the AI buzzword attached); this is not new. By extension, we do not expect this to change the behaviour of clients: confident and educated individuals already self-direct their own planning on execution only platforms, whilst more cautious individuals (or those with more complex circumstances) seek holistic advice. This sell off is indiscriminate and only serves to make shares cheaper than they were 48hrs ago.
