Using AI to Speed Up SOA Preparation for Australian Financial Advisers

The Statement of Advice is the centrepiece of the financial advice process in Australia — and one of the most time-consuming documents to produce. A comprehensive SOA can take many hours to prepare, even for experienced advisers working with familiar client situations.

AI is changing this. Not by replacing the adviser's judgement or the compliance requirements, but by handling the drafting and structuring work that consumes so much time.

Understanding What AI Can Do in SOA Preparation

Before building AI into your SOA workflow, it's important to be clear about what it can and can't do.

AI can help with:

• Drafting standard sections that don't require specific client judgement (executive summaries, strategy explanations, risk profile descriptions, product descriptions)
• Structuring the document and ensuring all required sections are present
• Writing plain-English explanations of complex strategies
• Generating first drafts of the strategy rationale section
• Producing compliance checklists to ensure nothing is missed

AI cannot replace:

• The fact-finding and needs analysis process
• The adviser's judgement about what strategy is appropriate for the specific client
• The specific recommendations and their basis
• The best interests duty assessment
• Review and sign-off by the responsible adviser

The SOA remains the adviser's document. AI is a drafting tool, not a decision-making tool.

The SOA Sections Where AI Adds Most Value

Executive summary: This section needs to be clear, concise, and accessible to the client. AI can produce a well-structured first draft based on the key strategy elements and client goals. The adviser adds the specific details and adjusts the tone.

Client profile and goals: AI can help structure and articulate the client's goals and circumstances in a clear, readable way based on the fact-find information.

Strategy rationale: Explaining why a particular strategy is appropriate for the client is important for both compliance and client understanding. AI can help draft this explanation, which the adviser then refines to reflect the specific client circumstances.

Risk profile explanation: Standard explanations of risk profiles can be drafted by AI and used consistently across SOAs, with minor adjustments for individual clients.

Product descriptions: General descriptions of investment products, superannuation structures, and insurance products can be drafted by AI and reviewed for accuracy. Product-specific details must be verified against current PDS documents.

Disclaimer and disclosure sections: Standard disclaimer language can be templated with AI assistance, though legal review is essential before finalising.

A Practical SOA Drafting Workflow

Step 1 — Complete the fact-find: This cannot be shortcut. The quality of the SOA depends entirely on the quality of the information gathered about the client.

Step 2 — Determine the strategy: This is the core adviser judgement. What strategy is in the client's best interests given their circumstances, goals, and risk profile?

Step 3 — Use AI to draft standard sections: With the strategy determined, use AI to draft the sections that don't require specific client judgement. Provide the AI with the key parameters (client profile, strategy, risk profile) and ask for first drafts of each section.

Step 4 — Add the specific advice content: The specific recommendations, their basis, and the best interests assessment must be written by the adviser. This is where professional judgement is irreplaceable.

Step 5 — Review and refine: Read the complete document as a whole. Ensure consistency, check all figures, verify product details against current PDS documents, and confirm compliance requirements are met.

Step 6 — Compliance check: Use a checklist (which AI can help generate) to verify all required elements are present and the best interests duty is properly documented.

Sample Prompts for SOA Sections

Executive summary:

"Draft a 150-word executive summary for a Statement of Advice. Client: [age, life stage, key goals]. Recommended strategy: [brief description]. Key benefits: [list]. This is a first draft — the adviser will add specific details and verify all figures."

Strategy rationale:

"Draft a strategy rationale section explaining why [strategy] is appropriate for a client with the following profile: [describe]. Cover: how the strategy addresses the client's goals, key benefits, key risks, and why this strategy was preferred over alternatives. This is a first draft for adviser review."

Risk profile:

"Write a plain-English explanation of a [balanced] risk profile for a Statement of Advice. Cover: what this means, typical asset allocation range, expected return characteristics, and how it aligns with a [X]-year investment timeframe. Keep it to 100 words."

Compliance Considerations

Using AI in SOA preparation doesn't change the compliance requirements — it changes how efficiently you can meet them. Key points:

• The adviser remains responsible for the accuracy and appropriateness of all content
• AI-generated content must be reviewed and verified before inclusion in the SOA
• The best interests duty assessment must reflect genuine adviser judgement, not AI output
• Document your AI-assisted workflow in your practice's compliance policies
• Check with your AFSL holder about any specific requirements or restrictions