Artificial intelligence (AI) is bringing about a fundamental change in Australian financial advice. Financial planners are transforming the way they give advice to ordinary Australian investors, in particular, mum and dad investors, with the help of new technology. The increase in the use of AI is opening up affordable, personalised financial advice to more individuals, transforming the traditional advice offering.
AI Adoption Surges Among Australian Financial Advisers
A more recent report reveals that it was noted that 74% of Australian financial advice practices currently employ or intend to employ AI technology. This number has increased up to 45% in a single year, thus ranking Australia as a worldwide pioneer in the use of AI in financial advice.
Advisers can use AI to automate meeting notes, file management, and analyse their portfolios so they can spend more time on relationships with their clients. Dante De Gori, CEO of the Financial Planning Standards Board, said AI “allows more time to engage in deeper human connection with clients,” demonstrating AI’s role in enhancing adviser productivity without replacing personal service.
Figure 1: Australian AI financial advice adoption statistics
AI Expands Financial Advice Access for Everyday Investors
AI directly addresses the ongoing affordability challenge in the Australian financial advice market. Financial influencer Natasha Etschmann noted the system “is really broken,” leaving many Australians without proper guidance. This situation drives increasing numbers of mum and dad investors to adopt AI-powered platforms that offer accessible investment advice.
Nearly half of Australian investors now use AI tools at some stage to guide decisions, reflecting rising advice costs and the reduction of some human advisers. David Sharpe, chair of the Financial Advice Association Australia, urged clients to approach AI advice with care, noting human judgment remains critical.
Figure 2: Benefits of AI financial advice for Australian mum and dad investors
Practical AI Applications Streamline Advice Delivery
The application of AI in advising in Australia addresses various aspects. 86% of AI users use solutions to manage meeting documents which save hours per week. More than half use it to communicate with clients including newsletters and education, and almost half of them use AI-written pieces of advice. This automation helps in cutting down on repetitive work and enhancing turnaround times.
AI aids in client profiling, risk assessment, and customised portfolio planning on a global scale through the analysis of big data sets and market trends. These real time insights enable the advisers to respond promptly to the dynamics in the market.
Figure 3: Traditional vs AI-powered financial advice for Australians
Regulatory Focus on Fair and Transparent AI
ASIC’s recent analysis warned many financial firms lack adequate policies on AI fairness, bias, and governance. Only half require disclosure to clients when AI aids advice. ASIC Chair Joseph Longo emphasised these gaps could place consumers at risk. As AI usage expands, advisers and licensees must implement robust governance frameworks. These ensure AI tools work fairly, transparently, and in the best interests of clients, maintaining trust in financial services.
Figure 4: Regulatory governance framework for AI in Australian financial advice
Robo-Advisors and FinTech Open New Advice Pathways
Robo-advisors demonstrate AI’s impact beyond traditional planning. These online platforms provide algorithm-driven, low-cost advice tailored to user profiles. Investors enter personal and financial data and receive customised investment recommendations promptly. This technology removes geographical and cost barriers, expanding advice access.
The broader Australian FinTech sector increasingly integrates AI, cloud computing, and machine learning, creating personalised, efficient financial services beyond conventional adviser models.
Figure 5: How robo-advisors work for Australian investors step-by-step process
Rising Property Market, Mum and Dad Investors, and AI Advice
Mum and dad investors are also actively involved in property assets which own more than half of the total Australian household wealth. The strategies of investors in 2025 are determined by increased house prices and demand for rental.
The bank of mum and dad is still essential, and numerous parents give economic assistance to younger generations who have to deal with high deposits and affordability issues.
Intelligent Investment Advice has the potential to assist these investors to the extent that it offers data-driven property investment insights and a risk management strategy. This is complementary to wider market trends in which younger Australians are looking towards co-ownership and other avenues to owning their own home.
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Future Impact of AI on Mum and Dad Investor Experiences
The objective of AI in financial advice is bound to expand and enhance the experience of more clients by providing affordable, timely, and personalised insights. Although technology is making access more accessible, quality remains secure thanks to ethical governance and human oversight.
The adoption of AI in advice by Australia is an example of leadership in the field globally. These advances give mum and dad investors the means to make better decisions and more effectively utilise their financial future in complex markets and changing economic situations.
To conclude, AI changes the nature of financial advice in Australia by enhancing its efficiency, accessibility, and personalisation of the service. This transformation is responsive to the traditional obstacle of everyday investors (particularly mum and dad investors) without deemphasising human advisor touch and regulatory protection. The outcome is a financial advice environment that serves Australians and provides them with smarter investment decisions.
