The future of human advisors in an increasingly automated industry.

One of the most critical debates associated with this technology due to the rapidly changing landscape of financial services is in regards to the future role of human advisors. Automation has been penetrating most sectors, including finance, to add value to services delivery, improve efficiency, and reduce costs through better implementation of robo-advisors and artificial intelligence. Though, the industry is finding a balance between the benefits of automation and the value of personalized human interaction. Instead of disappearing, a more evolved role for human advisors is what is happening.

As technology advances, financial institutions are implementing automated financial systems. This helps them save time in routine functions and improve service delivery to clients. Among them, robo-advisors have become popular in the industry because they use algorithms to provide investment advice that can reflect a particular risk profile and financial goals of an individual. Without requiring human involvement, they can still give portfolio management, rebalancing, and tax-loss harvesting. They can work through so much data, execute trades to get clients what they want very fast, so they can give them timely and very efficient services. For sure, this shift towards automation has dumped a big time over traditional advisory models, and many people were questioning which types of advisory models humans should use for their work.

While automation is on the rise, there are qualities that human advisors possess which technology cannot. The essential skills of emotional intelligence, empathetic understanding, and the ability to understand nuanced client needs are best brought by human advisors. More than just numbers, financial decisions can relate closely to personal life and involve family dynamics, personal value systems, and so much more. Human advisors do things like develop relationships, listen to clients, and are able to provide personal recommendations tailored to a particular situation. Such human contact fosters long-term client relations-a relationship unable to be developed by an automatic system.

Human advisors are also invaluable when it comes to comprehensive financial planning services. Even though robo-advisors excel at portfolio management and entry-level investment information, they cannot compete with a full-service financial advisor who can educate and enlighten a client about everything from general investments, savings, and even estate planning. Human advisors are able to help a client's need for estate planning, retirement strategies, tax optimization, and risk management. Since an advisor can see the full picture of a client's financial situation, he will be able to guide the client through complexities and make smart decisions. The holistic approach is especially helpful for those clients who are going through major life transitions - marriage, divorce, or retirement - when they require more expert help and support.

The future of human advisors is highly likely to remain hybrid: they will use the strengths of automation together with the golden touch of personal human interaction. Here, technology will take most of the repetitive and time-consuming tasks out of the way, allowing human advisors to concentrate more on higher-value activities such as relationship building and strategic planning. For example, with data analytic tools, advisors can identify trends, monitor client portfolios, and scrutinize investment opportunities for timely information to help them better their services that they manage. In themselves, technology and the human advisors will translate to betterment in outcomes for the clients because the advisor will be using the technology to provide tailored solutions in a more efficient manner.

In addition to this, the human advisor can leverage the operational efficiencies of automation. An enhancement of business processes and automation of administrative tasks will allow advisory engagement at various levels with clients. This would increase advisory's time in getting acquainted with client's needs, their education about financial concepts, and developing tailor-made strategies. Technology can also lead to continued engagement through automatic communication along with content on personal levels that would improve the general client experience.

Integrating automation into the advisory process poses a challenge. The more prevalent technology becomes, the more challenging an environment human advisors will have to confront, forcing them to learn new skills in order to remain ahead in the game. It requires a change of mindset for financial professionals and investment in their continuous learning and professional development in embracing technology, learning how to apply data analytics, and understanding how to integrate automated tools in practice.

Regulatory considerations will thus be very important in the future for human advisors. With the advancement of technology, regulators would need to develop guidelines and standards for automated financial advice so as to ensure consumer protection and integrity of the marketplace. A human advisor will require knowledge of the regulatory changes and implement practices accordingly so as to remain compliant and uphold ethical standards.