Integration of fintech that uses ChatGPT and artificial intelligence (AI) into advice theoretically means each firm would need just one human adviser in the future, according to AdviceBridge.
Chief commercial officer Bruce Ely-Johnson said up to 80% of the 27,500-strong adviser community could become redundant.
"If a system can replace [advisers], then would each firm require as many advisers as it currently has," he questioned. "With roughly 5,230 advice practices then theoretically you would only need one adviser per firm.
"Advisers will be replaced by generative AI/ChatGPT, but not those that embrace it."
Ely-Johnson added that paraplanners were "probably most at risk". For advisers, he noted those who "turn the other way" and ignore fintech advances could be "setting themselves up to fail".
"However, if they embrace technology and utilise its benefits within their business and for their clients then they will be in a much stronger position and stay relevant to client needs."
He continued: "It is in advisers' own interests to embrace, rather than fight the tide. The sooner people start exploring the technology's merits, the sooner their true value will be understood."
Ely-Johnson added that radical technology overhauls could also benefit client confidence.
"Some may not want to show their emotions to their adviser but would be much happier to do so with an avatar," he opined. "AI may not be able to provide emotional support in the traditional way but it does understand this and is learning and developing constantly."
