Customers use AI more than advisers in finance, McKinsey says

But four in five buyers still rely on human guidance for consequential choices.

Half of Hong Kong customers have used artificial intelligence (AI) before making a financial purchase decision, whilst half of financial advisers use AI less than once a week or never, according to a McKinsey & Company survey.

The gap is emerging as customers use AI to recognise financial and protection needs, learn about and compare products, and make purchase decisions.

Some 35% of customers use AI to recognise a potential need, 34% to learn and compare products, and 30% to make a purchase decision.

Amongst customers using AI-assisted support, 58% cited more consistent and objective comparisons as a reason for doing so, whilst 53% cited stronger knowledge than a human adviser.

Another 37% valued AI's ability to connect personal circumstances to insurance needs, whilst 39% viewed it as less sales-driven.

“AI is not removing the need for human advice. It is changing the standard that sound advice must meet,” said Arthur Shek, Managing Partner of McKinsey & Company’s Hong Kong office.

Shek added that “the real divide” might be between advisers who use AI and those who do not, as customers still seek human judgement and accountability amidst AI-shaped information, comparisons and questions.

Human advisers remain the primary source of advice for around 80% of customers buying major life, health, and wealth products.

Customers cited understanding their personal or family situation as a reason for relying on advisers, at 43%, followed by help avoiding mistakes in high-stakes decisions at 41%.

Some 35% wanted real-time answers to complex questions, whilst 34% wanted someone accountable after purchase.

Adviser AI use also varies by customer segment. Weekly adoption stands at 34% amongst advisers serving mass-market customers, 58% amongst those serving affluent customers and 69% amongst those serving high-net-worth customers.

The largest gaps in AI use are in customer-facing activities, including prospect contacting and follow-up, decision discussions and closing, and customer needs analysis.

The survey found that advisers' low AI use does not necessarily reflect resistance to the technology. Where advisers are not using AI, the absence of a suitable AI tool was cited more often as a barrier than discomfort with using AI.

“The challenge is less about convincing advisers that AI matters, and more about showing them how it creates better outcomes for their clients,” said Jackey Yu, Partner and Leader of Asia Customer Experience and AI Transformation at McKinsey & Company.

Yu added that the absence of tools that fit naturally into advisers’ daily work is the bigger barrier in most activities, rather than resistance.

“Financial services institutions should move beyond standalone tools and focus on a small number of practical, high-impact use cases,” he said.

McKinsey said financial services institutions should focus on adviser training and adoption, data foundations, incorporating experienced advisers’ expertise into AI systems, and developing human skills such as listening, building trust, and guiding customers through difficult decisions.

“AI can deliver a step change in both professionalism and productivity—but only when it changes how advisers actually work,” said Raymond Woo, Partner and Leader of Asia Financial Services Sales and Distribution at McKinsey & Company.

Woo added that the opportunity is to build an AI-enabled advisory model, where AI sharpens preparation and personalisation, whilst advisers bring the judgement and accountability that clients trust.