Advisers are increasingly turning to artificial intelligence as they seek to boost efficiency and manage growing operational and compliance demands, says Vanguard.
The firm’s survey found regulatory and compliance requirements are placing increasing pressure on advisers’ time, resources and operational capacity. While 75% of advisers said they had fully embedded Consumer Duty within their business, many continue to view demonstrating and evidencing good client outcomes as an ongoing process rather than a completed exercise.
As a result, more than half of advisers surveyed are already using AI to support client service and improve business efficiency.
Gillian Hepburn, head of UK adviser solutions and sales at Vanguard, said: “Advisers told us they feel well equipped to help clients navigate market uncertainty and changing economic conditions. What concerned them far more was the growing complexity of running an advice business, with regulation, compliance and operational demands consistently identified as some of the biggest pressures facing firms.
“What’s particularly striking is, in response, how quickly AI has moved from theory into practice. More than half of advisers told us they are already using AI, with many exploring ways to improve efficiency, reduce administrative workloads and free up more time to spend with clients.”
Almost six in 10 (57%) advisers are already using AI for purposes beyond administrative tasks. Those surveyed said AI helps them to capture client conversations more accurately, spend less time writing notes and paperwork, identify potentially vulnerable clients, keep clearer records and focus on discussions with clients.
However, Vanguard said there remains uncertainty around how quickly to adopt AI. Advisers cited concerns around selecting the right solutions, understanding the technology and ensuring investments deliver meaningful benefits to clients and businesses.
Advisers also raised the potential implications of AI being used by clients to scrutinise advice and compare adviser propositions.
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