Over a quarter of clients using AI tools to support advice

Financial advisers believe that more than a quarter (28 per cent) of their clients are using artificial intelligence (AI) tools to support traditional advice, according to research from Wealthtime.

The study, carried out by The Lang Cat, followed research from the Financial Conduct Authority (FCA) that found four in five investors aged between 18 and 40 have used AI to help with investing.

Wealthtime’s analysis showed that 63 per cent of advisers reported clients independently using AI tools in relation to their financial advice, including 27 per cent using them regularly.

A further 31 per cent said some clients may be doing so, while 6 per cent had no reason to believe any clients were using AI for advice.

On average, advisers estimated that 28 per cent of their client base was using AI to some extent.

The most common client use of AI was to prepare questions ahead of meetings with advisers (59 per cent), followed by checking or validating advice already given (50 per cent) and researching the firm before the first meeting (44 per cent).

However, 35 per cent said some clients were generating their own recommendations independently.

Just 2 per cent reported having lost a client as a result of them using AI tools.

“AI is clearly becoming part of the advice journey, but let's not confuse convenience with expertise,” commented Wealthtime MD, Toby Larkman.

“Clients are using AI to arrive at meetings better informed and with more questions, which can be a positive thing.

“The danger comes when people start treating AI as a regulated adviser. AI can be impressively persuasive, even when it's completely wrong.

“When it comes to life-changing financial decisions, there's no substitute for professional advice that's been tailored to deliver the best outcomes for the individual client.”

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