88% of advice firms now using AI with client outcomes driving adoption

Advice firms are becoming more proactive about technology, with better client outcomes driving their priorities and integration remaining the most frequently cited barrier to change, according to findings from TFAS Compliance Services.

The survey found that 76% of respondents describe their firm as more proactive about technology than a year ago, while 88% report significant or incremental technology changes.

The overwhelming message from firms is a desire to get more from existing systems, alongside selective adoption of new tools.

Better client outcomes were the most frequently cited strategic driver, selected by 88% of respondents, followed by enhanced service at 65%. Reducing costs and improving profitability were each selected by 47%.

However, practical barriers remain. Integration with existing systems was cited by 69% of respondents, followed by staff time to learn new tools at 56% and the cost of switching or integration at 50%.

AI adoption

AI-powered tools were the most frequently reported category of technology adopted or upgraded over the past year.

The findings show firms at different stages of adoption: 35% of respondents say AI is embedded in their firm’s day-to-day workflow, 35% are trialling a dedicated tool and 18% are experimenting informally. Just 12% say they are not currently using AI.

Meeting notes and call summarisation were the most commonly reported uses, followed by client communications. Other applications included file checking, research or suitability-report drafting, compliance and marketing content.

Uncertainty about regulatory expectations and data security were the most frequently cited barriers to expanding AI use, followed by time to evaluate tools and train staff.

The survey also explored attitudes towards AI carrying out defined tasks. Once the task had been defined, 88% of respondents said they would be comfortable with AI flagging anomalies in client data. Preparing meeting briefings, scheduling and prioritising follow-ups, and drafting client communications each attracted 59%.

Respondents also identified the controls that would help build trust: 76% wanted the ability to set boundaries on what AI could act on, while 71% wanted a clear audit trail of what it did and why.

Errors going unnoticed and losing the personal touch with clients were the most frequently cited concerns about autonomous AI, each selected by 59%.

Richard Ardron, chief commercial officer at TFAS Enterprises, said: "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.”