Karen Barrett, founder and CEO of Unbiased, examines how digital automation and AI are transforming financial advice. She notes that while advisers have traditionally been cautious about technology, the rapid rise of automation now presents a unique chance to reduce costs, increase efficiency, and drive growth—if firms are ready to embrace change.
The financial advice industry is at a tech turning point.
For years, I’ve witnessed first-hand advisers acknowledge the benefits of tech adoption but never fully embrace it.
Now, as automation technology rapidly advances, with AI leading the charge, advisers have an opportunity to transform their practices like never before.
But the question is, will they?
Advisers are deeply rooted in tradition
It’s well understood that tradition runs deep in the financial advice industry, both culturally and operationally.
Our recent research at Unbiased reveals that nearly a third (31%) of financial advisers rely on client referrals to attract new business, and many still use traditional marketing techniques, including direct mail and newspaper ads.
While these aren’t inherently bad tactics, we rarely see them create the predictable growth most advisers’ desire.
They also clearly signal the industry’s inherent reticence around new tech.
It’s understandable, in many ways.
How can firms be confident that new technologies will deliver, prove cost-effective, and stay compliant?
But this hesitancy becomes particularly alarming when contrasted with conventional consumer behaviour.
Today’s advice seekers are primarily online, especially those seeking advice for the first time.
And with the Great Wealth Transfer – the transfer of assets between generations, where up to £7 trillion is expected to pass between generations in the UK alone by 2050 – well underway, this trend is only set to intensify.
Tackling the resourcing squeeze
Alongside navigating this new digital reality, financial advisers are under increasing pressure to grow, all while managing tight budgets and slow returns on investment.
A study of financial advisers on the Unbiased platform revealed nearly half (44%) named limited budgets as their biggest barrier to growth, with 16% citing poor return on marketing investment as a major barrier.
On top of that, while consumers are happy to find their financial adviser online, they retain a very strong preference for in-person delivery of the advice itself.
A recent Unbiased study found that 7 in 10 UK consumers prefer financial advice from a human over AI.
While it’s a reassuring sign that consumers value the human touch, in-person advice is most costly and harder to deliver at scale.
It leaves most advisers stuck in a cycle of high effort, low ROI, and inevitable burnout.
So, how can advisers escape this high-effort, low-return trap?
The answer has already arrived.
Digital automation in action: What’s working now.
At Unbiased, we’re seeing first-hand the benefits that advisers are achieving by experimenting with automated, digital-first lead gen.
Through our platform, advisers receive highly targeted consumer enquiries delivered directly into their CRM systems, supported by tools and data designed to maximise conversion. We also provide guidance on contact cadences to help advisers engage prospects effectively and accelerate conversion rates.
By receiving qualified, first-time advice seekers directly to their inboxes, advisers are seeing higher lead volumes, increased conversions, and faster ROI.
Beyond that, those who have embraced what from the outside can look like ‘simple’ automation tools, such as email workflows, scheduling, and chatbots, are seeing their cost-to-serve reduced dramatically.
Digital automation is taking tasks off advisers’ plates and giving them back time to focus on the task at hand – delivering quality financial advice to those who need it.
Even smaller firms and those with limited budgets can reap the benefits of automation. Piloting specific tools is one way forward, enabling advisers to test their effectiveness before committing to full adoption. This route allows them to compete on an equal footing with larger players.
We’ve seen strong results from advisers who operationalise these strategies.
For example, SMEs, both independent and restricted, who accept a higher volume of enquiries each month achieve the greatest success in embedding consumer acquisition into their growth plans. This approach allows them to cherry-pick high-value prospects and drive stronger conversion rates.
Speed also matters: advisers who respond to enquiries on the same day achieve 3.4x higher AUM than those who wait 24 hours. Fast-acting, automated CRM systems make this possible, ensuring no opportunity is missed.
The AI turning point
AI and how we can use it to our advantage comes up in every conversation I have with people across the industry.
In fact, according to an Unbiased study, advisers see AI as both the biggest industry challenge and a major opportunity. But unsurprisingly, most, 61%, have yet to adopt it in any form.
Used wisely, it’s neither a gimmick nor a replacement for human advisers; it’s an accelerator.
There is a huge opportunity to use it across the client journey to improve engagement and drive growth.
Here are just a few placed advisers can get started with AI:
- Automate back-office tasks: Mundane admin tasks always take up more time than necessary. Handing this over to AI frees up advisers’ time to focus on clients.
- Test and refine marketing campaigns: AI speeds up and reduces the costs associated with testing different marketing campaigns, meaning you can land on the one that works best quickly and cheaply.
- Identify patterns and optimise lead gen: Analysing consumer behaviour requires a lot of mental gymnastics. Leaving it to AI means all you have to do is review suggestions and make the necessary changes.
The possibilities are endless.
Even small changes can have a huge impact downstream, saving advisers time and money, while helping them grow sustainably and spend their time delivering the real value-adding work – delivering personal financial advice.
The time to embrace AI is now
The market is shifting, whether advisers like it or not.
Digital automation will soon become the norm.
Consumers are searching digitally, expecting speed, personalisation, and accessibility from their financial advice providers. AI and digital automation is becoming increasingly integrated into our industry, developing into an anticipated feature of financial advice.
The landscape is moving fast, and financial advice firms that remain tied to old methods risk falling behind.
The future isn’t AI instead of advisers, but advisers enabled by AI . Those who embrace this shift will be the ones who win the day.
Platforms like Unbiased demonstrate how digital-first strategies can work at scale, while keeping advisers at the centre of the client relationship. Our focus is on harnessing AI responsibly and transparently, while keeping qualified professionals firmly at the heart of advice.
We’re proof that digital-first is already working at scale.
It’s time to get on board.
Karen Barrett is the founder and chief executive of Unbiased, an AI-enabled financial advice platform.
