In today’s fast-paced digital world, there’s a lot of talk about AI and automation – often in the same breath.
However, while they share common goals of improving efficiency and reducing manual effort, AI and automation are not the same thing. Understanding the distinction is crucial, particularly in financial services, where platforms like Xplan are evolving to support more intelligent and efficient business processes.
What’s the difference between AI and automation?
Automation refers to the use of technology to carry out tasks without human intervention. These tasks follow a set of predefined rules or instructions. For example, setting up a task template that automatically assigns follow-up actions when a client completes a fact find is automation.
It’s fast, consistent, and reliable – but it doesn’t think.
AI, on the other hand, goes beyond following rules. AI is designed to learn, reason and make decisions based on data patterns.
Think of AI as a digital brain that can analyse past behaviour and predict future outcomes, like identifying clients who may be at risk of cancelling their insurance policy or suggesting portfolio adjustments based on market trends. AI has the ability to adapt and improve over time.
Why do people confuse automation with AI?
The main reason people conflate AI and automation? Marketing hype.
It’s tempting for businesses to label their automated processes as “AI-powered” because it sounds more advanced and innovative. However, most of what is called AI in many software tools is, in fact, rule-based automation.
There’s nothing inherently wrong with that – automation can dramatically enhance productivity – but calling it AI can mislead users about its capabilities.
The confusion also stems from the fact that both AI and automation aim to reduce human workload, so their outcomes can sometimes look similar. For instance, an automated email reminder sent to a client may appear to be the result of intelligent decision-making when it’s really just a scheduled rule.
How Xplan uses automation (and why it feels like AI)
Xplan, one of the most widely-used platforms in the financial services industry, has built a powerful suite of automation tools that, while not strictly AI, often feel intelligent. Why? Because when automation is well-designed and deeply integrated into workflows, it mimics decision-making and can react dynamically to user input or client behaviour.
Here are a few examples of Xplan automation features that behave like AI:
1: Task templates and workflow triggers
These allow you to automate entire processes, from onboarding to annual reviews, by assigning the right tasks to the right people at the right time. When configured properly, they can respond dynamically to changes in client data or form submissions, giving the appearance of “smart” decisions.
2: Bulk data processing and scheduled reports
Xplan can automatically generate and distribute client reports, portfolio summaries and compliance checks. While there’s no learning involved, the ability to time and tailor these outputs gives it an “intelligent” edge.
3: Client communication rules
You can set Xplan to automatically send emails, SMS or notifications based on specific events or triggers like a birthday, review due date or document upload. The platform “knows” when to communicate and how, creating a personalised experience at scale.
4: Integration with third-party tools and APIs
By connecting Xplan to CRMs, client portals and data providers, you can build a digital ecosystem where data flows freely and triggers automation across multiple platforms. The responsiveness and fluidity of these systems often feels indistinguishable from AI, even though it’s all rule-driven.
5: Data feeds and validation rules
Xplan can auto-populate and validate data from external feeds, flagging inconsistencies or missing information. While not predictive, this real-time responsiveness mirrors what many expect from AI.
So, then, is Xplan AI?
Not yet, but it’s getting closer. And the key takeaway is this: you don’t always need AI to be efficient and innovative. A well-structured automation strategy within Xplan can dramatically transform how your practice operates, reduce human error and free up your team to focus on higher-value advice.
As the platform evolves and integrates with emerging AI capabilities (such as the highly-anticipated File Note AI tool in development), the line between automation and AI in Xplan will become even blurrier. But for now, the smart use of automation is more than enough to give your business a competitive edge.
Want to learn how to harness automation in Xplan like a pro?
Over the coming months we will break down practical strategies to streamline your processes and supercharge your client experience – no AI required.
Advisely Partner
