In recent years, the advisory business in the financial sector has encountered significant challengesA surge in available investment advisers in the market has coincided with a troubling trend of low-quality advisory services, leading many investors to struggle in accessing the high-caliber guidance they are seekingThe number of investment advisers employed by securities firms has climbed to over 80,000 by the end of 2024, marking an increase of almost 32% since 2020. This growth, however, has not matched the level of quality service provided to clients.

Amid these challenges, the advent of artificial intelligence (AI) has emerged as a beacon of hope, promising to reshape the future of the advisory industryThe rapid integration of generative AI technology is addressing the inefficiencies in the advisory sector, poised to redefine the underlying dynamics of supply and demandWith this transformative efficiency wave, a critical question arises: how will this optimization of capacity manifest, and how will professionals in the industry navigate the emerging landscape?

On February 12, a prominent macroeconomic researcher at a leading brokerage revealed on social media their exploratory deployment of the DeepSeek-70B modelWhile admitting certain challenges, they observed a marked enhancement in AI's ability to interact with researchers, stating, "AI research is enough to change the research paradigm." This declaration suggests a significant shift is not just possible but imminent, particularly as generative AI continues to evolve with weekly iterations.

In practical applications, companies are striving to integrate a range of AI tools such as market commentary assistants and news helpers to bolster their advisory capabilitiesFor instance, Huafu Securities has leveraged AI to enable its advisers to respond to client inquiries with remarkable efficiency, slashing the average time to gather critical information from approximately 12 minutes to just 4 minutes

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This has dramatically improved the accuracy and comprehensiveness of responses to client concerns.

Yuan Haibo, a business expert from Hang Seng Electronics, illustrated this transformation, noting the use of AI models like DeepSeek and Tongyi Qianwen to create a variety of support services for investment advisersThese enhancements have reportedly increased efficiency by upwards of 50%. Similarly, Guosen Securities has embarked on a project to develop "Xintou Advisor AI Assistant," designed to amalgamate the expertise of top investment advisers and personalize various AI models to facilitate better performance, thus affecting a more fundamental transition from improvement-focused to intelligence-focused service delivery.

However, these advancements raise questions about job security among current advisersAs AI tools become more sophisticated, many first-line advisers express anxiety regarding their employment stabilityIndustry observers contend that this technological shift is not merely about job replacement but is fundamentally about redistributing the value chain within the advisory services ecosystem.

According to Zhang Jiawei, Chief Investment Officer and Product Center General Manager at Galaxy Securities, every technological revolution displaces some industries while simultaneously fostering the growth of new onesThe rapid advancement of AI renders basic, repetitive tasks automatable, allowing advisers to pivot towards a deeper understanding of client needs and provide high-quality, personalized research services that appeal to a broader clienteleHowever, advisers who fail to adapt to the changing dynamics may face obsolescence.

The evolving landscape, driven by AI iteration and upgrades, poses challenges not just for advisory firms but for the financial industry at largeA spokesperson for Shanxi Securities remarked that while top-tier advisers might withstand the AI onslaught due to their unique client interactions, those at the average level or below could face harsher repercussions.

A similar sentiment echoed from a representative at Guotai Junan Securities, who suggested that the industry's structural evolution entails a refined tiered hierarchy of capabilities

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Here, standardized services may slowly be appropriated by AI, while nuanced demands from high-net-worth clients would require bespoke engagement from skilled advisorsThus, a "new advisory model" will likely emerge, characterized by collaborative human-AI interactions.

Emphasizing a cooperative relationship rather than a competitive one, CITIC Securities posits that advisory services should transition from being seen as competitors to becoming facilitators of AI technologiesEnhancing professionalism, improving operational efficiency, and developing innovative service models will be paramount in maintaining client trust and compliance.

Proponents warn that the pressure exerted by AI advancement necessitates a collective commitment among advisers to sharpen their skills and deepen their expertise continuallyIt is vital for advisers to embrace and master AI technologies to not only increase efficiency but to also enhance service quality without compromising their roles.

In facing these waves of change, it is imperative that advisers acknowledge the necessity of re-contextualizing their competencies within an AI-influenced frameworkA representative from Guotai Junan noted that it is essential for investment advisers to create a value-oriented framework in this new era, positing a dual approach: understanding foundational AI principles while also building comprehensive knowledge systems centered around the integration of AI and advisory services.

Furthermore, the evolution of the T-shaped skillset will become crucialFamiliarity with technical analytical tools such as Python or R will be equally important to understanding financial applications of machine learningAn appreciation for behavioral finance and the innate psychological drivers of high-net-worth clients will equip advisers with the differentiating skills required to stand out in this increasingly competitive landscape.

Servicing remains a central component of this capability evolution

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