Paraplanners are increasingly recognizing the potential of artificial intelligence (AI) to revolutionize the financial planning services they provide to clients. A recent survey conducted by Scottish Widows among 200 paraplanners in the UK unveiled a positive shift in attitudes towards AI within the industry. The survey indicated that 64% of paraplanners believe that AI tools will enhance their roles, a significant increase from the previous year’s 42%. This optimism is even more pronounced among younger paraplanners, with 84% of those under 30 expressing enthusiasm about the benefits of AI.

While the perception of AI has improved, the actual adoption of AI tools among paraplanners has also seen a gradual rise. Currently, 13% of paraplanners are utilizing AI tools, up from 10% in the previous year, and 57% are interested in incorporating AI into their workflows. The primary areas where AI tools are being applied include client reporting, meeting documentation, and data analysis.

Notably, 30% of paraplanners now view AI tools as a valuable opportunity, as opposed to 19% in the prior year, with only 7% considering AI a threat to their traditional roles. However, the survey revealed that 85% of paraplanners are not yet leveraging AI, with approximately 28% of them expressing no intention to do so.

The positive reception towards AI among paraplanners comes at a time when the industry is grappling with increased workloads due to regulatory changes. About 73% of paraplanners reported a negative impact on their workloads as a result of these regulations. Moreover, amidst fluctuating savings and tax regulations, there is a growing demand for a more stable policy framework. Over two-thirds of surveyed paraplanners advocate for an independent body to establish long-term policies for pensions and investments, aiming to ensure consistency and enhance financial resilience for customers.

Ranila Ravi-Burslem, the intermediary distribution director at Scottish Widows, emphasized the potential of AI to provide paraplanners with a competitive edge and bolster the capacity of the advice market. She highlighted the importance of supporting early adopters with the right technology to navigate regulatory challenges effectively. Ravi-Burslem also endorsed the idea of an independent regulatory body to promote sector-wide consistency and benefit customers in bolstering financial stability.