AI redefines financial advice as geopolitical uncertainty rises according to the inaugural Openwork Pulse survey

Financial advisers recognise the transformative impact of AI on their industry, with most seeing it as supporting traditional financial advice rather than replacing it, according to the ‘Openwork Pulse’, an inaugural survey conducted by the Openwork Partnership polling its advisers on the topical issues affecting the industry.

AI continues to transform the adviser landscape

Nearly nine in ten advisers (89%) believe that AI will have an impact on the traditional client-adviser relationship, with more than two-thirds (68%) citing concerns about clients turning to it for financial advice without professional guidance and being misled as a result.

Yet despite this, AI and technology are seen as being enablers of delivering high-quality financial advice to clients. Most respondents are confident that the impact of the technology will be positive, with more than half (55%*) believing that AI will complement their roles, freeing up more time to focus on strategic advice and strengthening client relationships. Only one in six advisers* have seen more clients using AI to support with their financial planning over the last six months and one in five (20%) advisers are already exploring how they can incorporate AI into a hybrid advice model with a further 16% recognising an urgent need to adapt their business to remain competitive.

Clients and advisers steady themselves amid elevated uncertainty

As AI reshapes the financial advice sector, advisers are also navigating a wider landscape defined by geopolitical tension and economic uncertainty. When asked what their clients are most worried about in the wake of geopolitical tensions, 62% of advisers said rising inflation/interest rates.

When asked what single biggest issue has concerned their clients over the last 6 months, a quarter (25%) cited market volatility, followed closely by tax and monetary changes (18%) and the broader impact of geopolitics on financial wellbeing (15%). For wealth advisers advising on market portfolios, a majority (70%) of clients remain concerned about recent geopolitical tensions but are opting not to make radical changes to their financial plans.

Advisers double down on growth in a tougher market

As the operating environment for financial advice businesses tightens, Openwork advisers remain singularly focused on propelling their business toward growth. The top drivers identified by advisers for business expansion were growing their client base (41%), increasing client retention (17%), and leveraging technology to improve efficiency (17%).

This appetite for innovation is matched by the Openwork Partnership itself. With the strategic partnership with Bain Capital, the network is poised to support advisers throughout the lifecycle, from providing training and development through the Business School, provisioning capital to scale ambitious firms, facilitating M&A and to aiding succession planning. As half of advisers anticipate retiring over the coming decade, Openwork is stepping up to provide the resources, guidance and operational strength needed to help firms manage succession smoothly and continue to thrive, whilst providing essential continuity of care and service for their clients.

Rob Barker, CEO of The Openwork Partnership, said: “At Openwork, we fully appreciate that AI is reshaping the adviser landscape at remarkable speed, and our findings show advisers are embracing that change with both optimism and realism. Like many of our advisers, we see technology not as a threat, but as an enabler that frees them to focus on more in-depth conversations and building stronger client relationships.  

I’m particularly encouraged to see advisers doubling down on opportunities and innovation in what is becoming a tougher operating environment. Growth can be achieved by leveraging technology to drive efficiency, strengthening client retention or expanding client bases and the shared ambition across our network is unmistakable. We remain committed to helping firms at every stage of their journey and ensuring the advice sector continues to harness technology to serve clients and protect outcomes.”