Financial advice firms are taking a more proactive approach to technology, but integrating new tools with existing systems remains the biggest barrier to further change, research from TFAS Compliance Services has found.
Its TechForward programme found 76% of respondents considered their firm more proactive about technology than it had been a year earlier, while 88% reported making either significant or incremental technology changes.
Rather than wholesale replacement of existing systems, TFAS said feedback from firms suggested many were looking to extract greater value from technology already in place while selectively introducing new tools.
Improving client outcomes was the most commonly cited strategic reason for technology investment, selected by 88% of respondents. Enhanced service was identified by 65%, while reducing costs and improving profitability were each cited by 47%.
INTEGRATION REMAINS A BARRIER
Connecting technology with existing systems was identified as a barrier by 69% of respondents, making integration the most frequently cited obstacle. Staff time required to learn new tools was cited by 56%, while 50% pointed to the cost of switching or integration.
The research was conducted through TFAS’s TechForward programme, which has involved workshops and focus groups with advice businesses alongside a survey examining technology use, priorities and attitudes towards artificial intelligence.
AI MOVES INTO ADVICE WORKFLOWS
AI-powered tools were the category of technology most frequently reported as having been adopted or upgraded during the previous year.
More than a third of respondents, 35%, said AI was embedded in their firm’s day-to-day workflow, with another 35% trialling a dedicated tool. A further 18% were experimenting informally, leaving 12% who said they were not using AI.
Meeting notes and call summarisation were the most common applications, followed by client communications. Firms also reported using the technology for file checking, research or suitability-report drafting, compliance and marketing content.
However, uncertainty over regulatory expectations and data security were the most frequently cited barriers to wider AI adoption. Firms also raised the time required to assess tools and train employees.
TFAS found firms appeared more receptive to AI undertaking clearly defined tasks. Some 88% said they would be comfortable with AI flagging anomalies in client data once the task had been defined, while 59% were comfortable with its use for preparing meeting briefings, scheduling and prioritising follow-ups, and drafting client communications.
Controls and transparency were also important. The ability to set boundaries around what AI could act upon was sought by 76% of respondents, while 71% wanted a clear audit trail showing what the technology had done and why.
Errors going unnoticed and the potential loss of the personal touch with clients were the leading concerns about autonomous AI, each cited by 59%.
Richard Ardron, chief commercial officer at TFAS Enterprises, said: “Through TechForward, we are hearing a clear desire from firms to get more value from the technology they already have.
“Advisers are becoming more proactive, with better client outcomes at the centre of their plans, and AI is increasingly part of that conversation.
“The challenge is making these tools work within the advice business. Systems need to connect, staff need time to learn, and firms need confidence in how AI is being used and overseen.
“Practical support with implementation is essential if that interest is to translate into better service for clients.”
TechForward combines adviser research with events and practical guidance. The programme brings together TFAS and Jigsaw Tree Consulting, with contributions from Intelliflo, Dynamic Planner and Focus Technologies.
