Paraplanners are harnessing AI and digital tools to boost efficiency as regulatory pressures mount, according to new research from Scottish Widows.
The findings, based on a survey of over 200 paraplanners sourced by Research in Finance, showed that 94% have seen their workload increase because of regulatory change. To tackle these pressures, more than a fifth (22%) now use AI either as part of their core processes or for specific tasks.
Among those using AI, 85% do so to save time and automate work such as meeting notes, documentation and recording, while 26% are applying it to fact-finding and data gathering.
Looking to the future, more than four fifths (82%) expect AI to deliver greater time efficiency and reduce administrative workloads in the next five years.
While one in ten (12%) firms currently have a formal AI policy in place, a third (35%) are developing one, signalling growing momentum across businesses of all sizes.
The growing popularity of AI comes as regulatory pressures for paraplanners continue to build. Over four in five (85%) paraplanners say frequent tax and policy changes have disrupted their processes and almost half (47%) cite the increasing regulatory burden and complexity as their single biggest challenge.
The research also showed that the impact is not just purely operational. Mounting workloads have led nearly a quarter (23%) of paraplanners to report a negative impact on their mental health and 18% said it has dampened their desire to stay in the industry. Furthermore, 39% say their biggest challenge is recruiting and retaining qualified staff.
Despite this, paraplanners remain resilient. Three in four (75%) remain confident about the future of the paraplanning role and seven in ten (69%) say their firms value them more than in the past, while nearly nine in ten (87%) describe their employer as supportive of the paraplanner role.
Jenny Davidson, intermediary wealth director at Scottish Widows, said: “What stands out in our research is a profession that remains remarkably resilient, even as workloads rise and the pace of policy change accelerates. But resilience alone isn’t sustainable and many paraplanners are embracing AI as a game changer to streamline processes and free up valuable time.
“This presents both opportunities and challenges and with few formal policies in place, it’s key that the industry supports paraplanners with the right technology, the right integrations and the right training as AI becomes more integral to the everyday.
“Adopting and embracing the benefits of AI, combined with continued investment in technology by platforms, will allow paraplanners to focus on the high-value work that drives better client outcomes rather than administrative burden.”
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