While AI can streamline tasks and enhance client engagement in wealth management, industry experts emphasise that human judgement and personalised advice remain irreplaceable when managing sensitive financial decisions and complex client needs.
Artificial intelligence may be becoming a useful aide in wealth management, but it is still a poor substitute for human judgement when the stakes are a person’s savings, retirement and family security, according to Andile Jonas of Momentum Savings.
Speaking on Moneyweb Now, Jonas said AI can make work faster and easier, especially by summarising information, drafting routine messages and handling administrative tasks. But he argued that financial advice depends on context, trust and behavioural coaching in ways that current AI tools cannot reliably match.
His warning reflects a broader debate across the financial industry. BlackRock has said AI can help advisers grow by automating repetitive work and improving client engagement, but it also stressed that technology should strengthen rather than replace the adviser-client relationship. In a similar vein, TechRadar has reported that finance firms are moving from AI experimentation towards real-world use, with compliance, transparency and data quality emerging as central concerns.
Jonas said one of the biggest risks is what he called “cognitive debt” , the gap that forms when people rely on AI answers without doing enough reading or thinking for themselves. In his view, tools such as large language models can explain complex concepts clearly, but they can also sound convincing even when they are wrong or incomplete. That, he said, is particularly dangerous when the question involves whether to buy, hold or sell an investment.
He also argued that advice is often about more than portfolio construction. A good adviser, he said, needs to understand family relationships, risk tolerance, long-term goals and even hidden vulnerabilities, such as who might be affected if a client dies unexpectedly. That kind of conversation, Jonas said, is part of the value a human professional brings and is not something an AI system can yet replicate.
The caution is echoed in research outside South Africa. An AP report on a Gallup poll and Edward Jones found that while some Americans use AI for financial guidance, only a small minority place strong trust in it, while most still say they have at least some confidence in professional advisers. The message across those findings is consistent: AI may be useful for efficiency and explanation, but when money, emotion and regulation are involved, human expertise still matters most.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
