In this unfolding age of AI, most financial planners I speak to are drawing comfort from a simple belief: AI can’t replicate the human relationship. Empathy, trust, deep listening – these, their argument goes, are the advisor’s edge. And I must be frank; I’ve been making that argument too.
UK financial planner Dan Haylett calls this the “empathy delusion” – the assumption that because machines cannot feel, they cannot provide the experience of being listened to and understood.[1] It’s a seductive idea. But AI seems to be proving this assumption wrong, at speed.
AI is already in the room
As Haylett points out, AI can already read a client’s complete financial picture, produce a comprehensive plan, explain trade-offs in plain language, adapt to the client’s emotional state and respond to questions at any time of day or night – at a fraction of traditional advice costs. What if AI could show empathy on a par with a human? Research suggests that is already happening.
A recent study in the International Journal of Human-Computer Interaction asked 63 therapists
to assess transcripts of sessions involving either a human therapist or Pi, a relational AI chatbot.[2] The therapists only identified AI correctly 53.9% of the time – no better than chance – and actually rated
the human-AI transcripts as higher quality on average.
According to YouGov,[3] a third of US adults would be happy to consult an AI chatbot instead of a human therapist and Columbia University[4] researchers have noted that ChatGPT is a popular substitute for therapy amid rising mental health challenges.
Yet, I have seen how financial planners who use empathy, curiosity and deep listening skills genuinely improve client outcomes – a finding backed by Harvard psychiatrist Helen Riess, who demonstrated that training doctors in empathy produces measurably better patient results. These skills remain essential. The danger lies in believing they are sufficient.
What is a financial planner’s real value?
Money is inseparable from who we are. Our relationship with it begins before we are born and continues after we die. Through every life transition – from first job to retirement, from marriage to loss – money is a means to an end. Helping clients clarify to what end and supporting them through the emotional complexity that comes with such decisions is where human advisors have their real edge.
I have previously written that I believe advisors have three enduring roles:[5] first, as a “thinking partner” helping clients reason through complex, often emotionally charged dilemmas; second as a “choice architect” – life is an ongoing series of decisions, where empathic support is key; and thirdly, as a “behavioural coach” – influencing clients to close the gap between what they need to do and what they actually do.
The new edge: harnessing AI
These three roles will increasingly be played in partnership with AI. And this points to what Haylett argues is the most critical competency of all: the ability to deploy, configure, interrogate and quality-check AI systems. The advisor who can get more from AI – combining its analytical depth with genuine human connection – will be the one who thrives.
I don’t believe the empathy edge has disappeared. But it is no longer enough on its own. Human advisors who recognise being a skilled human is a non-negotiable – not a differentiator – and who learn to harness AI’s potential across all aspects of financial planning will find their real value. Those who don’t, risk being left behind.
[1] Dan Haylett. The Empathy Delusion: Why Many Financial Advisors May be Making the Riskiest Bet of their Careers, LinkedIn Post, 13 February 2026
[2] Mohammad Amin Kuhail, Nazik Alturkl, Justin Thomas, Amal K. Alkhalifa, Amal Alshardan. Human-Human vs Human-AI Therapy: An Empirical Study. International Journal of Human-Computer Interaction, Volume 41, 2025, Issue 11
[3] YouGov (US) Surveys: Self-Serve, May 10-11, 2024
[4] Columbia University Teachers College (2025). “Experts Caution Against Using AI Chatbots for Emotional Support.” December 2025.
[5] Rob Macdonald. The 7 Pillars of Financial Health: Partnering with a Professional to Thrive, Vindigo Press, 2023.
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Rob Macdonald has held several senior positions in the investment industry. He is an independent consultant and coach who also develops and facilitates training programmes in behavioural coaching and practice management. Before joining the financial services industry, Macdonald was MBA director at the UCT Graduate School of Business. He is the author of the book The 7 Pillars of Financial Health and is co-author of the books Rethinking Leadership and Frontiers in Financial Psychology. Macdonald has a Master’s degree in Management Studies from Oxford University and is a CFP® Professional. |
