Paraplanners are increasingly using artificial intelligence (AI) and digital tools to meet the challenges posed by rising regulatory pressures, according to Scottish Widows.

Its survey of over 200 paraplanners in the UK found that 94 per cent had seen their workload increase because of regulatory change.

To address these pressures, 22 per cent were now using AI as part of their core processes or for specific tasks.

Of those adopting the technology, 85 per cent were using AI to save time and automate work such as meeting notes, documentation, and recording, while 26 per cent were applying it to fact finding and data gathering.

More than four in five (82 per cent) expected AI to provide greater time efficiency and reduce administrative workloads in the next five years.

Scottish Widows said this highlighted the growing potential of AI tools and could contribute to faster delivery times for clients.

Although only 12 per cent of firms had a formal AI policy already in place, 35 per cent were developing one.

These developments come amid growing regulatory pressures for paraplanners, with 85 per cent saying frequent tax and policy changes had disrupted their processes, and 47 per cent citing increasing regulatory burden and complexity as their biggest challenge.

Rising workloads has resulted in 23 per cent of paraplanners reporting a negative impact on their mental health, while 18 per cent said it had reduced their desire to stay in the industry.

More than a third (39 per cent) said their biggest challenge was recruiting and retaining qualified staff.

Despite these concerns, 75 per cent of paraplanners remained confident about the future of the paraplanning role, 69 per cent said their firms value them more than in the past, and 87 per cent described their employer as supportive of the paraplanner role.

“Paraplanners are the backbone of the advice profession, helping to manage the pressure of regulatory change while keeping client outcomes on track,” said Scottish Widows intermediary wealth director, Jenny Davidson.

“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 gamechanger 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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