Financial Services and AI: Adapt Now or Risk Falling Behind

Artificial Intelligence has transformed countless business functions across healthcare, software development, pharmaceuticals, retail, and manufacturing. Yet financial services sales were once thought to be immune to AI’s disruption, as the emotional intelligence, intuition, and experience of a human sales professional could not be matched by software. 

While the human element remains irreplaceable in financial services, AI has emerged as a major strategic asset for sales professionals. From lead generation and forecasting support to market analysis and automated data entry, AI enables sales teams to focus on what they do best—building strong client relationships.  

Still, reluctance to fully embrace the technology remains. Some financial service sales leaders have concerns about costs, regulatory and compliance risks, inconsistent performance, employee overreliance, and other risks. Although these concerns are valid, hesitancy to adopt AI comes with its own risks. More specifically, they risk falling behind competitors already leveraging the technology. AI will only become more ingrained in sales processes as time goes on, and financial services sales leaders should consider adopting the technology faster to improve resiliency for the future. 

AI’s Impact on Financial Services Sales

Whether it’s online trading platforms, mobile banking apps, customer service chatbots, or automated fraud detection, financial services companies have long embraced new technical developments to improve operations. In fact, they’ve historically been among the earliest adopters of new technologies to streamline internal processes, enhance security, improve customer experiences, and generate new revenue. 

Traditionally, sales performance depended on an individual’s understanding of products and services, as well as their client management and people skills. Now, AI-enhanced sales tools help sales professionals enhance their abilities and put their time and energy to better use. 

Below are a few impactful ways AI is supporting sales operations:

Personalized Experiences: AI can tailor emails, LinkedIn messages, and follow-ups using sentiment analysis and behavioral patterns from previous engagements to maximize effectiveness. Financial institutions like Morgan Stanley have successfully deployed internal AI assistants that record client interactions to draft personalized communications and product recommendations.

Lead and Demand Generation Forecasting: With the ability to quickly research historical data, market trends, purchase patterns, and potential risks, AI platforms can help sales teams determine which prospects are most likely to convert into future customers.

Automated Administrative Tasks: CRM updates, compliance documentation, note-taking and other administrative tasks can prevent sales teams from focusing on actual sales. In fact, a 2022 study found salespeople devote only 32% of their time on selling. AI tools can automate many of these processes so sales professionals can devote more time to closing deals. For example, Citizens Bank expects 20% efficiency gains by automating operational activities with AI co-pilots. 

Personalized Coaching and Skill Development: Leveraging performance metrics, calls, video conferences, and client emails, AI platforms can provide recommendations on how to fine-tune each salesperson’s approach for greater success and stronger client relations.

Financial service sales leaders should also be aware of AI’s risks:

Data Security and Privacy: Because AI systems are fueled by data, a breach, ransomware attack or other exploit could expose private financial data to bad actors. This can create severe financial, legal, and reputational risks for financial services businesses.

Regulatory Compliance: Not all AI-powered sales tools comply with the SEC, FINRA, or consumer privacy laws such as the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA). Biased or inaccurate AI systems may violate fair lending laws, data privacy rules, and other mandates that could elevate legal risks. 

Inaccuracies/Hallucinations: AI systems can sometimes make mistakes or reference outdated or inaccurate information. Unchecked errors in communications, data entry, or analysis can damage client relationships and compromise business.

The Costs of Stalling AI Adoption 

It’s understandable that some sales leaders hesitate to add AI into their sales strategies. These tools are still relatively new and financial service leaders must carefully assess their risks. AI deployment requires digital maturity, and some companies may need to modernize their existing infrastructure if they want to leverage its capabilities. Sales teams also need extensive training to ensure AI tools are used effectively, which requires additional time and resources beyond deployment.

These may seem like convincing reasons to delay or outright avoid investing in AI, but the long-term consequences of doing so can put financial service businesses at a major disadvantage. For instance, early adopters of AI will have a significant edge over those that wait, becoming more proficient at using these tools to enhance their work. Over time, this AI proficiency will bring greater efficiency, lower operating costs, quicker customer conversion rates, and higher revenue. Even if companies decide to adopt AI later, the learning curve will put them at a disadvantage.

AI resistance can also impact a company’s public perception. Across financial services, having an innovative, tech-driven reputation can be a competitive selling point for customers. AI support drives more informed decision-making that helps customers pick the right financial products and services. Customers may view companies that resist AI as outdated, leading them to turn to more innovative competitors. Additionally, tech-savvy financial professionals may avoid joining companies resistant to change, preventing companies from recruiting top talent.  

Incorporating AI into financial services does have its risks, but the consequences of dismissing AI could be greater. AI adoption isn’t about replacing sales professionals—it’s about providing them with more time to strengthen customer relations. Working closely with their CTO and tech teams, sales leaders can safely integrate AI to improve routine sales processes, enhance customer experiences, and lay the foundation for future success.