How Are Advisers Using ChatGPT?
“Used improperly, technologies can and do result in the deterioration of cognitive faculties that ought to be preserved”.
The Impact of Generative AI on Critical Thinking, Microsoft Carnegie Mellon University, 2025
Unsurprisingly, one of the most common compliance issues we’re asked by advisers is – “How are other advisers using AI?”
It’s unsurprising that advisers are asking. LinkedIn and industry press is dominated by posts heralding the transformation of advice by AI and FOMO is real.
It’s a “compliance issue”, like everything else, because the consequences of getting it wrong seem to be far greater than its benefits.
Practical Uses Of GenAI In Advice Practices
Let’s try to balance the hype with research and reality. You’ve probably heard that artificial intelligence, and Generative AI in particular, is transforming industries, replacing workers and reshaping the future. But if you’re after practical insights as to how advisers are using AI today, the answer is much simpler — and a lot more grounded.
Right now, AI is helping advisers and practice staff do low-value, time-consuming tasks faster and with fewer errors. Things like:
- Checking grammar and tone before sending important emails
- Quickly summarising economic reports for a client newsletter
- Drafting LinkedIn posts or website blogs
- Tidying up standard letters and client communications
Nothing revolutionary. Just helpful.
Most of the time, GenAI is being used passively — not to reimagine advice, but to fact-check, tidy up writing, draft routine emails, or create marketing copy.
We see it being used as a digital helper, sitting in the background, smoothing out the edges. Our observation lines up with industry analysis noting GenAI’s applicability for “low-stakes, easily verifiable tasks” (How Can Generative AI Shape a More Inclusive Future—or Risk Reinforcing Barriers for the Very People It Aims to Support?).
It’s rare (right now) for advisers to use AI to write, or help write, advice documents, build strategies, or directly inform client recommendations.
The risks are too high, the trust too low, and the rewards too uncertain.
Evolving Adviser Use Of GenAI
That said, the way advisers use AI is starting to change — slowly but surely.
“A growing number of professional services are now being partially delivered by generative AI—from therapy and medical advice to legal counsel, tax guidance, and software development.” (How People Are Really Using Gen AI in 2025 (Marc Zao-Sanders, Harvard Business Review, April 9, 2025))
We’re seeing practices getting more confident or simply recognising how workflows can be transformed by low-cost technology.
They’re starting to use AI not just to tidy up emails, but to make technical research faster, simplify complex information for clients, and summarise markets and portfolio performance in plain English.
It’s still a supporting role, but it’s moving closer to the core of client communication and practice management. Again, this is consistent with industry research that observed that as users become familiar with AI, they tend to rely on it for “accelerating comprehension and simplifying complex tasks“.
In practice, GenAI is used to “automate the process of fetching and curating task-relevant information, making it less effortful.” (Microsoft Carnegie Mellon University, 2025 – Section 6.2).
The Hidden Costs Of Convenience
But there’s a real cost to convenience because GenAI doesn’t just change how we work — it changes the range of outcomes we produce.
“AI-assisted knowledge workflows tend to be subject to ‘mechanised convergence’, i.e., users with access to GenAI tools produce a less diverse set of outcomes for the same task, compared to those without.” (Microsoft Carnegie Mellon, Introduction)
This loss of diversity suggests a reduction in reflective, context-sensitive thinking, which is replaced by a homogenisation of outputs. You might think that differentiation is a luxury in financial services but there’s a broader risk of unthinking reliance on GenAI; while efficiency is gained, opportunities for deep engagement and skill development are lost.
“In line with recent projections that more accessible GenAI tools may exacerbate the risks of technology over-reliance, our results provide empirical evidence that knowledge workers’ confidence in AI doing the tasks negatively correlates with their enaction of critical thinking.” (Microsoft Carnegie Mellon University, 2025 – Section 4.2.1)
This is the real compliance risk: in addition to reduction in cognitive diversity and critical engagement, regular AI users show “significant declines in analytic thinking, evaluation skills, and thoughtful judgement“.
In simple terms, routine use appears to erode habitual deep thinking, raising concerns about “use it or lose it” cognitive decline. For advisers — whose professional value rests on judgment, not speed — that’s a serious risk. If you let AI think for you, you risk weakening the very skills your clients are paying for.
Research highlights that workers who felt the AI was capable were significantly more likely to accept outputs uncritically, skip independent verification, and minimise effortful reflection.
The other critical observation is that even the passive, uncritical and recurring use of GenAI for simple low-stakes tasks has a profound long-term impact; it weakens your capacity for creativity and critical thinking. The Microsoft Carnegie Mellon Report (4.3.2) concluded that: “Overreliance on computing technology is not a novel phenomenon; however GenAI may exacerbate the associated risks. Indeed, such reliance may be tolerable for low-stakes tasks, like grammar checking, but it can lead to significant negative outcomes in higher stakes outcomes.”
As we’ve previously written, GenAI is more frequently used than admitted. While it’s tempting to dismiss the uncritical adoption of GenAI for administrative or research, understand its impact.
Our advice to you is that before you expand GenAI’s role in your practice, make sure you’re strengthening human oversight, critical thinking, and professional review; prioritise building capability over short-term convenience.
Practical Risks Of Uncritical Use
If that’s too vague to worry about, think about the practical consequences of uncritical adoption of GenAI including:
- Reduced Analytical Rigour: In environments where verification, independent judgement, and risk-based decision-making are regulatory requirements, habitual reliance on GenAI threatens to compromise organisational competence.
- Data Quality and Reliability Risks: Uncritical acceptance of AI outputs may embed misinformation, misinterpretation, or bias into client advice, compliance attestations, and corporate reporting.
- Conduct Risk: Regulators expect licensees and advisers to exercise independent, professional judgement, irrespective of technology use. GenAI does not absolve individuals of these responsibilities (see ASIC RG 104 and Info Sheet 269 so uncritical use presents a substantial conduct and legal risk to be managed.
These are “known knowns” and smart practices are already managing these risks by:
- Using AI for efficiency, not strategy
- Training staff to check outputs carefully
- Keeping human judgment front and centre
- Building confidence through small wins, not blind trust
- Embedding regular critical thinking exercises to maintain cognitive skills
- Demonstrating and documenting human oversight to meet regulatory expectations
Future-Proofing Advice
The reality is that GenAI won’t be replacing advisers anytime soon but – whether acknowledged or not – it’s already embedding itself in the financial services ecosystem. It’s our belief that advisers who can work with AI — without losing their critical thinking — will thrive in a competitive and highly regulated environment, so if you’re not experimenting yet, you’re already falling behind.
We believe that those who use AI thoughtfully, preserving critical faculties and professional judgment, will differentiate themselves in a market increasingly shaped by automation.
So, rather than passively surrendering to GenAI, advisers must master it — setting standards that machines cannot match: prioritising nuanced judgment, human empathy, and ethical leadership.
It’s not difficult, but it will require deliberation and deliberate practice.
Ignore the hype. Your competitive edge is not technology itself, but the critical thinking that ensures technology serves your business and your clients — not the other way around.
Ready to Strengthen Your AI Strategy?
At Assured Support, we help Australian financial advisers embrace innovation without compromising compliance, judgment, or professionalism. Whether you need help with Compliance Consultancy, Regulatory Support, Licensee Reviews, or Client File Reviews, our expert team can assist you to integrate AI safely, satisfying your Regulatory Obligations, and building resilient Compliance Frameworks.
Contact Assured Support today to safeguard your future in a rapidly changing advice landscape.
If you liked this, we recommend reading:
The Hidden Risks of AI: ASIC’s Review of Licensees’ Embrace of Artificial Intelligence
AI-Driven Compliance: Transforming Risk Management and Regulatory Oversight
Frequently Asked Questions
How are financial advisers currently using GenAI in their practices?
Financial advisers are primarily using GenAI for low-value, administrative tasks like grammar checking, summarising reports, drafting client communications, and creating marketing content. AI acts more as a digital assistant, improving efficiency without taking over core advisory functions.
What are the compliance risks of using GenAI in financial advice?
Key compliance risks include reduced analytical rigor, data reliability issues, and conduct risks. Overreliance on AI can weaken independent judgment, embed misinformation, and fail to meet regulatory standards like ASIC RG 104 and Info Sheet 269.
How can GenAI impact the critical thinking skills of financial advisers?
Research shows that heavy reliance on GenAI may erode critical thinking, judgment, and reflective analysis. This “mechanised convergence” leads to homogenised outputs and a diminished capacity for context-sensitive decision-making.
What best practices can help financial advisers manage GenAI risks?
Smart practices include using GenAI only for efficiency, verifying AI outputs, prioritising human judgment, embedding critical thinking exercises, and documenting oversight processes to stay compliant and preserve advisory skills.
Why is critical thinking a competitive advantage in the age of AI?
Advisers who maintain strong critical thinking skills while leveraging AI will stand out in an increasingly automated industry. Their ability to offer nuanced judgment, human empathy, and ethical leadership will differentiate them from AI-reliant competitors.
