Financial services firms will need to balance greater use of AI with stronger human engagement and more reliable data as consumers increasingly turn to artificial intelligence for financial decisions, Defaqto’s 2026 Conference has heard.

Delegates at The Data of Record conference on 16 September were told that the rapid spread of AI across both financial services firms and their customers is increasing the importance of accurate, independently verified information.

Opening the event, Defaqto interim CEO Mike Piddock (pictured) said AI was already influencing how firms operate, how customers interact with the sector and how financial decisions are made.

He said the quality and provenance of the data underpinning AI systems would become increasingly important as their use expands, with firms needing greater confidence over where information has come from, how it has been structured and independently checked, and whether it provides sufficiently broad market coverage.

Consumer research commissioned by Defaqto and conducted by Savanta found that eight in 10 people use an AI assistant at least three times a week, while six in 10 use AI to help them make decisions.

Within financial services, the research found consumers are now more likely to use AI-powered tools as a source of information when making decisions than to go directly to a provider or speak to a financial adviser.

However, concerns remain over the reliability of that guidance. One in five respondents said they actively distrust AI tools when selecting a financial product, while almost one in five have acted, or nearly acted, on AI guidance that subsequently proved to be wrong.

The research also found that 62% of consumers believe they do not have enough information to judge whether advice or guidance generated by AI is accurate.

Alex Ward-Booth, director at Savanta, compared the challenge to the California Gold Rush, where success depended on being able to distinguish genuine gold from “fool’s gold”.

Keynote speaker Emma Boardwell, founder of Emotional Finance, said firms would need to “zig towards speed, efficiency, automation and AI in order to compete” while also “zag towards human connection in order to differentiate and matter.”

Speakers at the conference also considered how AI is reshaping customer buying journeys and the risks posed when automated systems rely on incomplete or outdated information.

Defaqto used the event to preview changes to its Star Ratings for 2027 covering home, motor, pet and travel insurance. It also outlined plans to increase consumer awareness of the independent research and expert analysis used to produce the ratings.

The conference’s central theme was that the growth of AI is likely to increase, rather than reduce, the need for comprehensive and independently verified financial product data.