Client trust in artificial intelligence is on the decline, despite wealth managers remaining positive about the technology, new research from Avaloq has suggested.
According to Avaloq’s study, two fifths (40%) of UK wealth managers now believe that clients will never trust the use of AI in investment advice, up from 24% in 2024.
A similar picture emerged across financial planning, with 40% reporting that clients will never trust AI in this area, compared to 28% of those who said the same in 2024.
While not as stark, Avaloq said the trend is also visible internationally. Three in 10 (30%) wealth managers globally believe clients would not trust using AI for investment decisions, an increase from 25% in 2024. The same proportion (30%) also said clients could never trust the technology in financial planning, up from 21%.
Despite the drop in client trust, UK and global wealth managers remain confident in the potential for AI to support them in their roles, the research showed. Nearly nine in 10 (87%) UK wealth managers and 85% of global wealth managers believe AI will be integral to the future of their work.
There was also widespread agreement on the value AI will bring to their industry as a whole, with 82% of UK wealth managers and 81% of global wealth managers stating that they believe AI will bring benefits to the wider industry.
Suman Rao, UK managing director at Avaloq, said: “While wealth managers see AI as integral to the future of their work and the industry, many clients are unconvinced about its role in investment decisions and financial planning. Bridging this gap will be critical for wealth managers looking to reap the true benefits AI can offer.”
Rao added: “The human touch will always be important to clients and it may be that we are seeing their broader concerns about AI’s impact on the way we work and live filtering through. But the efficiency and decision-making benefits that AI provides should not be overlooked and wealth managers must take proactive steps to reassure clients about how it is best used. That includes embedding transparency, accountability and strong human oversight into AI-driven solutions.”
Main image: zach-m-7F9PhBM1gFM-unsplash
