Tilly Norwood looks like any other actress trying to break into Hollywood. But Tilly isn’t real. She’s an AI creation, and her arrival has rattled the acting world.
Stars like Emily Blunt are worried. Will Tilly replace her? Probably not today (perhaps tomorrow.) More likely is that the next generation of Emilys may never get a chance to start. The fear is not just of being replaced, but of being shut out before a career even begins.
Wealth management faces the same challenge.
Large firms employ thousands of so-called advisers. In truth, many are salespeople acting as advisers. That’s the performance. The title on the business card says “adviser,” but the job is to gather assets, sell products, and hit targets.
Here’s the irony. Emily Blunt is honest about acting, it’s her profession. Wealth managers are full of salespeople acting too, but the audience doesn’t realise it. Investors believe the role is genuine because the performance is so slick. The very best salespeople are the ones you don’t recognise as salespeople.
And this is where AI comes in. Just as Tilly threatens to undercut new actors, AI threatens to undercut these “adviser-actors.” AI can follow scripts, deliver presentations, and manage products more cheaply and consistently than any human.
When people fear redundancy, they act badly. They cling to outdated models, resist innovation, or push clients into products that serve the firm more than the investor.
For investors, the lesson is clear: don’t be seduced by the performance. Ask yourself, am I getting authentic, independent advice, or just watching a very convincing act?
Nic Round is a Chartered Financial Planner and Chartered Wealth Manager, authorised and regulated by the Financial Conduct Authority.