Artificial intelligence (AI) will be “transformational for the advice sector”, MKC Wealth chief executive officer Dominic Rose told Money Marketing.
AI can make financial advisers service to clients “far better and quicker”, with MKC Wealth using it to produce client meeting reports.
“I’m a massive advocate for AI in advice,” said Rose, warning firms that do not embrace the technology will be left behind and become uncompetitive.
He believes the accuracy of advice from AI will only improve over time and trust in it will increase as more people use it for this service.
AI can make the whole advice process more “efficient”, although MKC Wealth wants to be “human-led and AI-enabled”.
Rose said he feels AI “will take over parts of what planners do but will never take on fully an advisers’ job”.
He points out a key issue with AI: if an algorithm is wrong, it will keep giving incorrect advice. A human adviser, on the other hand, can recognise a mistake and put it right.
Rose comments come as Fidelity Adviser Solutions IFA DNA revealed that 19% of advice firms have adopted AI and introduced an AI tool in the past year.
Uses include meeting transcription (13%), automation of routine tasks (10%) and acting as a personal assistant (7%).
The research also found advisers are optimistic about the benefits of AI: 40% believe it will allow them to spend more of their day in client-facing tasks.
Fidelity International head of adviser distribution Paul Richards said: “We see AI as an enabler, not a replacement. By streamlining routine processes, it frees advisers to focus on what really matters – building relationships, understanding client needs and delivering long-term outcomes.”
The efficiency behind AI for advisers is a useful tool. Rose pointed out that “demand for advice is booming with the help of the upcoming Budget”.
Chancellor Rachel Reeves’ second Budget will take place on Wednesday 26 November.
Currently, from the age of 55 (57 from April 2028) you can take up to 25% of your pension as a tax-free lump sum, up to a limit of £268,275.
However, there is speculation that the government may slash this maximum during the Budget.
“We are seeing more people make pension withdrawals before the Budget,” said Rose, but added that MKC Wealth does not advise on speculation and tells people to remain calm.
“All these rumours do is cause uncertainty and that is not very helpful. The Budget is definitely having an impact on client behaviour.”
“Knee-jerk reactions are typically harmful to clients plans,” Rose added.
