AI vs Financial Planners: In an era where financial advice is dispensed in 30-second TikToks and AI tools can build entire portfolios in seconds, it’s natural to ask: Is the human financial planner still relevant? At Henceforward, we believe the answer is a resounding yes – but the game has changed.
The way people access, interpret, and act on financial information has undergone a seismic shift. And while AI and “finfluencers” may offer convenience and confidence, there’s a growing danger in mistaking information for advice … and a risk that many South Africans don’t even realise they’re taking.
Today’s consumers are more empowered than ever. A simple search yields thousands of budget templates, investment calculators, and free AI tools that promise to “crunch the numbers.” Add to this a new generation of social media influencers – “finfluencers”- sharing money hacks, property tips, and investment strategies with massive online audiences.
The appeal is obvious:
But beneath the surface, there’s a real lack of regulation, accountability, and context.
For a deeper look at the true value of financial advice, read: The true value of a financial planner
In South Africa, financial advice isn’t a casual chat over coffee. It’s a regulated activity, defined and governed under the Financial Advisory and Intermediary Services (FAIS) Act. According to the FAIS Act, “advice” includes:
“…any recommendation, guidance or proposal of a financial nature furnished, by any means or medium, to any client… in respect of the purchase of any financial product or in respect of the investment in any financial product…”
That includes:
In other words, if someone gives you financial guidance that influences your decisions, even on social media or via AI, they are potentially offering “advice” in the eyes of the law—even if they say they’re not.
For a deeper understanding of how real advice works, explore: How a qualified financial advisor can add value to your life
❌ They Can’t Know You
AI can’t understand your family dynamics, your fear of running out of money, or that you’re funding a child’s education while caring for aging parents. It responds only to what it’s told … not to what you may be overlooking.
❌They’re Not Held Accountable
Finfluencers aren’t regulated, and AI tools aren’t liable for their output. If the “advice” turns out to be harmful, there’s no accountability. Contrast that with a licensed financial planner who:
❌ They Simplify the Complex
A 30-second TikTok can’t capture the nuance of:
For a planning framework that connects the dots, see: How an Outcomes Based Financial Plan is Invaluable
To be fair, finfluencers have done the public a service: they’ve exposed high costs and outdated practices still lurking in parts of the financial industry.
Many legacy products:
At Henceforward, we support this pressure on the industry to modernise. We believe:
👉 Learn how we do this: Henceforward’s Unique Flat Fee and Fixed Fee Advice Model
One upside of accessible content is that more South Africans are engaging with their finances.
We’ve seen a shift:
We love this. Financial advice should feel like a collaboration, not a lecture.
That said, many finfluencers encourage people to compare planners as if they’re price-based utilities, rather than long-term strategic partners.
“Why pay a planner R2,000 when I can ask ChatGPT?”
“Can’t I just DIY this investment switch?”
Sometimes yes. But true planning is about structure, support, and staying power – not just strategy.
👉 For a grounded framework to get started, read: 13 Lasting Lessons For Long Term Financial Success
Used wisely, AI and fintech can enable great advice. We use them too.
✅ AI helps with:
✅ Apps and platforms:
But they don’t replace the judgement, perspective, and accountability of a trusted advisor. Well not yet anyway.
👉 See why it matters to work with someone objective: How Independent and Impartial Advice Makes a Difference
When the COVID crash hit in 2020, many investors panicked. Robo tools went quiet. We didn’t.
We jumped in … called our clients, had real conversations, and helped ease their fear. We knew that in moments like this, clarity matters. Our goal was to help them focus on what truly mattered at that time: the health and well-being of their families and communities.
Then, we modelled new projections based on the reduced portfolio values and showed them:
“Yes, this setback changes the numbers – but here are your options: work a bit longer, save more, take slightly more risk, or adjust expectations.”
Because they had a clear plan – and a real person walking beside them – they stayed the course. And most are now better off than before.
In other cases, behavioural conversations revealed blind spots – clients who’d never questioned their inherited views on wealth. Today, they’re living more purposeful lives thanks to thoughtful, human advice.
And over time, our fee model has saved clients more than it cost them, by:
1. Avoiding poor product decisions
2. Reducing tax liabilities
3. Lowering platform and fund fees
In most cases, the savings have outweighed two decades of flat -fee advice.
The research backs this up:
1. A Cirano Institute study found that advised households accumulate up to 4x more wealth over 15 years than non-advised ones.
2. Vanguard’s Advisor Alpha report shows advice can add up to 3% net value per year, largely through behavioural coaching.
3. 45% of South Africans aged 18–35 follow at least one finfluencer – yet only a fraction are licensed.
4. The FSCA has launched multiple investigations into unregulated advice and warned: “Information presented as entertainment can still have serious financial consequences.”
We understand the frustration with high costs—whether in financial products or private healthcare. But imagine this: your cardiologist quotes you for open-heart surgery, and instead you ask ChatGPT for tips, or take advice from a fitness influencer on Instagram. Sounds absurd?
Yet this is exactly what’s happening in personal finance.
Financial planning, like medicine, involves high stakes, deep knowledge, and long-term consequences.
It’s not something to crowdsource or delegate to an algorithm. Yes, costs must be fair and transparent – but that’s a reason to demand better advice, not avoid it altogether.
We believe the financial planner of the future is:
At Henceforward, we’re not just here to give advice … we’re here to walk the journey with you. We combine technology, deep expertise, and personal insight to help you make better financial decisions that align with your life’s values and transitions.
n a world of quick fixes, AI shortcuts, and 60-second soundbites, the real differentiator is wisdom, empathy, and accountability. So yes – AI and finfluencers may claim “this is not financial advice.” But the decisions you make off the back of that content? Those are very real.
👉 If you have R20 million or more in investable assets and want to explore how real advice – backed by technology but led by humans – can help you preserve and grow your wealth with intention, book a confidential discovery call with us today.
Steven is a CERTIFIED FINANCIAL PLANNER® and Director at Henceforward, where he helps clients make sense of a noisy financial world. With over 20 years of experience, he blends technical insight with behavioural wisdom - cutting through the hype of algorithms, trends, and TikTok tips. Steven believes that while technology and education are empowering, the true value of financial advice lies in human connection, accountability, and perspective. This article reflects his commitment to modern, transparent advice that honours both the data and the deeply personal stories behind it
