Advisers are overwhelmingly positive about the potential for AI industry-wide, according to a new survey by digital advice platform, Dynamic Planner.
The survey, undertaken with over 400 advice professionals across the UK, found that 86% of advisers expect to increase their client base over the next 12 months, while 72% of advice firms are serving more clients than they were a year ago and this is a trend they expect to continue.
Smaller firms are most likely, and the largest firms least likely, to have increased their client bases over the past year. The research suggests that small firms may be playing catch up by unlocking some of the efficiencies their larger peers have already realised.
Overwhelmingly positive support for AI
9 out of 10 advice professionals (94%) expect AI to be positive for the industry, with early use cases including meeting transcription and summarisation; document analysis and data extraction; and finally report generation and personalisation. Across demographics, roles and firm sizes, advice professionals are positive about the potential implications of AI for the industry.
This positive sentiment around AI is driven by expectations that the technology will reduce the cost to serve and enable firms to service more clients. While those in their mid-careers are a little less convinced of the benefits, younger respondents who are building their client bases find the latter benefit particularly appealing.
Although firms are keen to embrace AI, under a third are using it to date, with just over a half actively investigating and most of the remainder expecting it to become useful soon. The overall picture is of firms excited about the possibilities of AI but yet to capture the benefits. With the technology evolving so rapidly, this is one area where we could see significant changes by next year’s survey.
The power of data: 85% see data as essential or useful for their firm
Advice firms capture vast quantities of data in the financial planning process. As they have invested in their technology, joined up their tech stacks and cleaned up that data, they have increasingly put themselves in a position to harness its power. With the information they need now at their fingertips, firms can build up more complete pictures of their businesses and identify trends, patterns, target markets and outliers.
Today, this has implications for everything from regulatory reporting to forecasting shifts in client behaviour. In the coming months and years, artificial intelligence has the potential to make the data work even harder.
Advice firms are widely aware of what their data can do for them, with close to half saying it is ‘essential’ and drives their decision making, while a further two-fifths find it useful in informing those decisions.
A significant minority of business decision makers and those in large firms would like to make more use of their data – perhaps recognising the untapped potential.
Ben Goss, CEO of Dynamic Planner, said: “Our inaugural report has found a highly positive mood in an industry that is growing and thriving. In the advice sector, as in the world at large, change is a constant – but firms are rising to the challenges and facing the future with confidence.
“Standout themes from Advice 2025 include the rise of data and the transformative potential of artificial intelligence – clearly viewed by advice professionals as opportunities to be seized. The advent of both no doubt plays a part in supercharging the view that firms will increase their client base over the coming year.
“This industry has a vital role to play in driving investment, promoting financial resilience and improving retirement outcomes for an ageing population. Cost to serve has been a headwind, but firms now see the opportunity to grow and scale, bringing advice to more of those who need it."
