Report provides guidelines for brokers on artificial intelligence
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Artificial intelligence is a key focus of the MFAA’s 2024 Hello Future National Conference being held in Melbourne today and now the peak industry body has released clear guidance for brokers on the use of AI.
Published on Thursday, July 25, the discussion paper Embracing the Future: Towards the safe and ethical use of AI for the mortgage broking industry, was informed by research carried out by the MFAA, which included roundtables held nationwide and attended by more than 80 MFAA members.
The MFAA said it had been less than two years since ChatGPT burst onto the scene, and since then the growth of AI had been exponential across many aspects of people’s daily lives as well as in the mortgage and finance broking industry.
The discussion paper explores the transformative potential of AI technologies for brokerages and also addresses critical issues relating to ethics, compliance and consumer protection.
MFAA CEO Anja Pannek (pictured above) said the emergence of AI gave brokers the opportunity to adapt and improve their business and client experience like never before.
But Pannek also said AI’s adoption would require consideration of guardrails to ensure the trust and confidence that brokers had built with Australian consumers and business owners was maintained and continued to grow.
“This is where our role at the MFAA comes into play,” Pannek said. “We have always led from the front when it comes to supporting our members, and the industry, to embrace technological change, and AI is no different.
“In this discussion paper, through the lens of embracing the future, we are looking to provide practical guidance to our members that they can apply in their businesses to adopt AI in a safe and ethical manner.”
Aims of the AI discussion paper
Pannek said the intentions of the paper included:
- promoting discussion and reflection on the use of AI within the mortgage and finance broking industry
- providing insight into how brokers are considering the use of AI within their businesses
- providing practical guidance for mortgage and finance brokers when integrating AI into their businesses
AI use grows rapidly
In the foreword to the discussion paper, Pannek said she was part of a panel session on innovation for mortgage and finance brokers at the 2023 MFAA National Conference.
“We were being asked about technology, in particular our views on what a broker could do to ‘future-proof’ their business,” Pannek said.
“At the time ChatGPT was less than a year old, not even a toddler. Use of ChatGPT was emerging in different broking businesses to assist with automation and reducing the time to complete mundane processes.”
Fast forward to July 2024 and the use of AI was accelerating “all around us”.
During the panel last year, Pannek said she commented that it was a good time to reframe our view on the future and technology.
“What if we looked forward and asked – rather than ‘future proof’ – what about ‘future embrace’? We’re living in an environment that is shifting quickly.
“Even as I write this, I know AI tools and capabilities will be available to our members when this paper is published that we have not heard about. The pace of change is accelerating, and it is daunting – but also exciting.”
Pannek said the emergence of AI gave brokers the opportunity to adapt and improve their business and client experience, without the reliance on broader significant technology investment – investment that has historically been made by lenders, aggregators or large industry participants.
“I see a future – one that many of our members also see – where AI enhances the human interaction between a broker and their client, but never replaces the broker.”
Pannek thanked David Bushby, CEO of CAFBA, for his contribution to the paper in regards to AI use for commercial and asset finance brokers.
Key themes in the AI discussion paper
Among the core themes and observations that emerged from the MFAA’s roundtables was that while many were increasingly adopting generative AI in their businesses, they also had concerns about privacy, bias, accountability, and the ethical implications of AI use.
“These insights clearly highlight the need for industry guidance on the safe and ethical use of AI,” said Pannek.
Another clear theme from the roundtables was that while brokers were keen to take advantage of the opportunities AI offered to remove mundane tasks and improve efficiency, how they worked with their clients, maintaining and retaining the human element of broking and the client interaction would be essential.
“AI will never replace the value a broker brings to their client – the human, and deeply personal relationship that only a broker can have with their client,” Pannek said.
The core themes identified in the discussion paper include:
- Mortgage and finance brokers are increasingly adopting generative AI in their businesses, with some integrating it to enhance efficiency in client meetings, marketing and client communication, while others have yet to use these tools.
- There is strong demand for targeted ‘micro’ AI training among brokers, who also appreciated the opportunities to learn from each other through roundtables and panels hosted by the MFAA.
- While AI offers opportunities to enhance the work that brokers do for their clients, members emphasised maintaining and retaining the deeply human element of a broker and ensuring AI does not replace their authentic voice.
- Members raised concerns in relation to data privacy, bias, accountability, and the ethical implications of AI use as well as the increased risk of scams, clearly highlighting the need for industry guidance on the safe and ethical use of AI.
National Conference focuses on AI
The MFAA’s National Conference being held at the Melbourne Convention and Exhibition centre today will feature Associate Professor Dr Catherine Ball, a renowned scientific futurist, talking about how AI is transforming businesses and the way people work.
A broker panel, featuring brokers Sadish Visvalingam of Premier Financial Advocates and Chris Borg of Borg Financial, as well as NextGen head of broker partnerships Renee Blethyn.
The panel is titled “Hello Possibility: Broker efficiency through AI and tech – the why, what and how of streamlining your business processes”. It will demonstrate how brokers are implementing new technologies in their businesses and how others can use AI and tech to improve efficiency, enhance productivity and deliver exceptional customer experience.
Other broker panels and speakers at the MFFA national conference will discuss personal and professional resilience, retention strategies, and marketing and communication.
How are you using AI in your broking business? Comment below.