Artificial intelligence is set to reshape advice, with 89% of advisers believing the technology will transform the traditional client-adviser relationship.
However, more than two thirds (68%) expressed concerns about clients turning to it for financial advice without professional guidance and being misled as a result, with one in six having seen more clients using AI to support their financial planning over the last six months.
The findings are from Openwork Pulse – an inaugural survey by the Openwork Partnership polling its advisers on issues affecting the industry.
Despite concerns, AI and technology are broadly seen as positive. More than half (55%) believe AI will complement their roles, freeing up more time to focus on strategic advice and strengthening client relationships. A fifth of advisers are already exploring how they can incorporate AI into a hybrid advice model, while a further 16% recognise an urgent need to adapt their business to remain competitive.
An overwhelming majority cited leveraging technology to improve efficiency (17%), increase client retention (17%) and expand the client base (41%) as the top drivers for expanding their business.
The research also uncovered the impact of geopolitical tension and economic uncertainty on clients. Almost two-thirds (62%) of advisers said rising inflation/interest rates were clients’ biggest worry, while 25% cited market volatility as the single biggest issue concerning clients over the past six months.
This was closely followed by tax and monetary changes (18%) and the broader impact of geopolitics on financial wellbeing (15%).
For wealth advisers advising on market portfolios, the majority (70%) of clients remain concerned about recent geopolitical tensions but are opting not to make radical changes to their financial plans.
Rob Barker, CEO of The Openwork Partnership, said: “At Openwork, we fully appreciate that AI is reshaping the adviser landscape at remarkable speed and our findings show advisers are embracing that change with both optimism and realism. Like many of our advisers, we see technology not as a threat but as an enabler that frees them to focus on more in-depth conversations and building stronger client relationships.
“I’m particularly encouraged to see advisers doubling down on opportunities and innovation in what is becoming a tougher operating environment. Growth can be achieved by leveraging technology to drive efficiency, strengthening client retention or expanding client bases and the shared ambition across our network is unmistakable.”
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