Paraplanners positive on potential of AI

10 September 2024

Paraplanners increasingly see Artificial Intelligence (AI) as having the potential to transform the financial planning service they offer customers, according to Scottish Widows’ latest research.

The results of a nationwide survey reveal that paraplanners increasingly see the potential of AI in making their workloads lighter, dispelling myths that it will replace their jobs.

Some 64% of paraplanners believe AI tools will be useful in their role up from 42% a year ago. This rises to 84% in the under-30s bracket, indicating greater positivity around AI in the upcoming generation of paraplanners.

While general sentiment has improved, actual usage has also edged up. 13% of paraplanners are now using AI tools, up from 10% last year, while 57% are interested in using AI.

When asked what they were using AI tools for, the top answers were client reporting (35%) and the recording and documenting of meetings (35%). Data mining and analysis was next at 19%.

Nearly 1 in 3 (30%) surveyed paraplanners now see AI tools as an outright opportunity, compared to just 19% last year, while only 7% see them as a threat to their roles (versus 9% last year). However, 85% of paraplanners are not yet using AI and of that number around a third (28%) said they do not plan to. With the emphasis on value for money mandated by Consumer Duty now baked-in to advice firms day-to-day work, AI tools could present an opportunity to go above and beyond in providing even better value for clients.

Commenting on the survey results around AI, Ranila Ravi-Burslem, Intermediary Distribution Director, Scottish Widows said: “Our survey reveals the increased confidence in and positivity around the potential of AI, and the possibilities presented by these new technologies for the industry.

“AI has the potential to give paraplanners a competitive edge, and increase capacity in the advice market, so it’s important that early adopters are supported with the right technology. From our side, we’ve put technology innovation at the forefront of our platform development strategy, committing £150 million over three years to streamline paraplanner and adviser workflows.”

Professional Paraplanner