Research finds UK advisers embracing AI and platform consolidation but growth constrained

Financial services research firm Investment Trends has today released the findings of its 2026 UK Adviser Technology & Business Report, revealing an advice sector balancing improved profitability with mounting structural and operational pressures.

Investment Trends found that despite a stable adviser population of around 28,000 and rising profitability – with 59% of advisers reporting increased profits – growth remains constrained as advisers struggle to meet client targets and face increasing complexity in delivering advice.

“On the surface, the advice market looks resilient, but advisers are facing growing complexity and are starting to raise their minimum asset thresholds,” said Lorenzo Vignati, Research Director at Investment Trends. “Client expectations, regulatory demands and operational pressures are all increasing at the same time.”

Efficiency is an ongoing challenge, with the average time to produce a financial plan consistently close to 7 hours based on tracked results. Fragmented technology ecosystems and poor system integration are limiting the effectiveness of digital tools designed to streamline workflows.

“Technology is critical to maintaining both efficiency and advice quality,” Vignati said. “But many advisers are still working across disconnected systems, which makes it harder to get the full benefit.”

Artificial Intelligence (AI) is rapidly gaining traction as a solution. The report finds that 53% of advisers are already using AI, primarily for meeting summaries, client communications and preparation tasks, while a further third are looking to adopt it. Advisers show a clear preference for AI to be embedded directly within their advice software, rather than accessed through standalone tools.

“AI has crossed the tipping point,” Vignati said. “The next phase will be about embedding it seamlessly into advisers’ workflows in a way that is compliant, practical and easy to use.”

At the same time, advisers are rethinking how they serve clients. While full-service advice accounts for 82% of offerings, hybrid advice models are used by firms to scale services and improve profitability, particularly for lower-balance clients.

The report also highlights the impact of the 2025 Autumn Budget, which has already reshaped client behaviour and advice strategies. Advisers report increased demand for tax planning, retirement strategies and intergenerational wealth transfer, alongside heightened client anxiety and reactive decision-making.

“The Budget has become an immediate catalyst for change in client conversations,” Vignati said. “Advisers are seeing a clear shift towards tax efficiency and retirement planning, which is driving demand for more sophisticated tools and platform capabilities.”

Platform dynamics are evolving rapidly, with consolidation accelerating across the market and advisers using fewer platforms. Competition for primary platform status is intensifying, with success increasingly driven by core fundamentals such as functionality, product range and cost competitiveness. “The direction of travel is clear – advisers are consolidating relationships and prioritising fewer, higher-quality providers,” Vignati concluded. “Platforms and technology providers that can deliver seamless integration, strong functionality and real efficiency gains will be best positioned to win.”