Having listened to several podcasts recently on the use of artificial intelligence (AI) in financial services, it is clear that the focus is moving beyond data analytics and chatbots into the more capable realm of AI agents.
Unlike static tools, AI agents are designed to operate autonomously within defined parameters, completing multi-step tasks, adapting to changing conditions and integrating with existing systems. Think of them as automated workflows.
For UK financial adviser firms, this represents a tangible opportunity.
The Consumer Duty, with its emphasis on delivering demonstrably good client outcomes while keeping operational efficiency under control, means AI agents could be used as a pragmatic tool to support advisers.
They can do this in five key areas:
Financial advice
AI agents can assist advisers in preparing for client meetings and shaping recommendations by bringing together relevant client data, market trends and modelling outputs in a structured and timely way.
This does not replace the need for professional judgement, nor should it, but it can reduce the time spent gathering and interpreting basic information.
The role is one of augmentation. Advisers retain responsibility for advice content, but can reach those decisions more efficiently
For example, an AI agent could pull in a client’s portfolio data from multiple custodians, overlay current market performance and compare it to long-term objectives. It could also highlight potential gaps against agreed financial plans or FCA suitability requirements.
By automating this background preparation, advisers and paraplanners can dedicate more of the meeting to understanding client priorities.
The role here is one of augmentation. Advisers retain responsibility for advice content, but can reach those decisions more efficiently.
Fund and risk research
Selecting funds or building portfolios demands a high volume of research, including analysis of performance metrics, risk profiles, asset allocations, costs and ESG factors. AI agents can process and summarise large datasets far faster than human teams alone, identifying relevant funds based on pre-set criteria.
Crucially, AI agents can be designed to draw only from approved research databases and due-diligence sources, helping firms maintain control over research quality and regulatory defensibility.
AI-driven screening also makes it easier to re-run risk assessments in response to market events. If geopolitical developments affect certain sectors, an AI agent can refresh exposure analysis in hours rather than days. This agility can help advisers keep recommendations current without overwhelming internal resources.
Suitability reports
Producing advice suitability reports remains one of the more labour-intensive parts of the advice process. The FCA requires these to be clear, fair and not misleading, while evidencing how recommendations meet the client’s objectives and risk appetite.
One of the risks is they may want to ‘mark their own homework’ and provide compliance checking against the AI generated reports
AI agents can support by pre-populating suitability templates with client data, portfolio summaries and product details drawn from internal CRM and planning systems. They can also incorporate regulatory boilerplate and firm-specific wording, while prompting the adviser to review and customise key sections.
One of the key risks I see is they may want to ‘mark their own homework’ and provide compliance checking against the AI-generated reports. AI agents can help here, ensuring a ‘four eyes sense check’ against any suitability report audit.
This approach shortens the administrative cycle without removing adviser accountability. The adviser still approves the final document and ensures it meets the client’s circumstances, but the mechanical aspects of data entry and formatting are reduced.
This can lower the risk of human and AI error, and make it easier to produce consistent, audit-ready documentation across the firm.
Client relationship management
Client retention depends on timely, relevant engagement. AI agents integrated into CRM systems can track agreed follow-up actions, send reminders to advisers and even draft tailored follow-up communications for review.
Such automation helps advisers maintain consistent touchpoints without relying solely on manual diary management. Over time, this can improve client satisfaction and strengthen trust, essential elements under the Consumer Duty’s “good outcomes” principle.
Compliance support
One of the most significant applications is in compliance. AI agents can assist in evidencing that a firm’s governance, systems and controls are working as intended and that advice processes are aligned with the FCA’s expectations.
By acting as a constant “second line of defence” on processes, AI agents can help firms identify potential issues before they escalate.
Leader: The two AI developments set to transform financial advice
Importantly, they can generate an auditable trail of actions taken, which can be valuable during regulatory visits or internal reviews.
While the potential is considerable, deploying AI agents in a UK advice business requires careful planning. Key considerations include:
Data security and privacy
AI agents will often require access to sensitive personal and financial data. Firms must ensure compliance with UK GDPR, use secure integrations and limit access rights to what is strictly necessary.
Regulatory alignment
The FCA’s rules, especially around suitability, communications and record-keeping, must be embedded into the AI agent’s operating framework. AI outputs should be explainable and reviewable by a human adviser before reaching the client.
Quality control
AI agents should be trained on high-quality, verified data sources to avoid factual errors or biased outputs. A governance framework for ongoing monitoring is essential.
Change management
Introducing AI into established advice processes will require adviser training, adjustments to workflows, and possibly cultural change.
Vendor and build choices
Firms must weigh the benefits of off-the-shelf solutions against custom-built systems, considering integration capability with existing CRM, back office, portfolio management and compliance platforms.
AI and AI agents, applied with care, offer a practical route to greater efficiency and consistency
The advice sector is facing a dual challenge: meeting rising regulatory expectations under the Consumer Duty while managing operational costs and adviser workloads.
AI and AI agents, applied with care, offer a practical route to greater efficiency and consistency.
They are not a silver bullet and cannot replace the client-facing trust that underpins the advice profession.
However, as tools for information gathering, process execution and compliance monitoring, they can free advisers to focus on higher-value work.
This balance between automation and personal service will be key to delivering both efficiency gains and the high standards of client care the FCA expects.
Chris Davies is founder and chief executive of Model Office
