Artificial intelligence is no longer confined to technology laboratories. It has entered our banks, investment platforms and financial institutions and, increasingly, our personal financial decisions. From analysing markets and preparing financial plans to detecting fraud, AI is rapidly changing how wealth is managed. This raises an obvious question: will it eventually replace the human wealth manager?

Traditionally, wealth management has rested on the relationship between a client and an adviser. The adviser does far more than recommend investments. He or she tries to understand the client's finances, family responsibilities, ambitions, tolerance for risk and long-term priorities. A portfolio that looks optimal on a spreadsheet may be wholly unsuitable for someone who cannot emotionally bear large swings in its value.

AI is exceptionally good at the mathematical side of this equation. Modern systems can process vast quantities of financial and economic data in a fraction of the time a human analyst would need, compare investment alternatives and monitor portfolios. They can also automate routine administrative work, freeing professionals to spend more time with clients. Recent industry research from LSEG describes this as a shift from gathering information to interpreting and coordinating insights.

For ordinary investors, this could be valuable. Personalised advice has long been expensive, and therefore associated with the wealthy. AI-powered tools could reduce costs and extend financial guidance to people who could never afford it.

But accessibility should not be confused with reliability.

One of the biggest dangers of AI-based advice is that an........

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