Client trust in artificial intelligence (AI) appears to be declining, despite wealth managers remaining positive about the technology, according to new research from Avaloq, a global leader in digital banking solutions and wealth management technology.
Avaloq’s study, conducted among over 400 wealth managers worldwide, found that two fifths (40%) of UK wealth managers now believe that clients will never trust the use of AI in investment advice, an increase from a quarter (24%) in 2024. The picture is similar when it comes to financial planning, with two fifths (40%) reporting that clients will never trust AI in this area, compared to 28% of those surveyed in 2024.
While not as stark, this trend is also visible internationally. Three in ten wealth managers (30%) globally believe clients would never trust AI for investment decisions – up from 25% in 2024 – while the same proportion (30%) say clients could never trust AI in financial planning, an increase from 21% when last surveyed.
Despite this apparent decline in client trust, UK and global wealth managers remain confident in the potential for AI to support them in their roles. A significant majority of UK wealth managers (87%, the same proportion as 2024) and 85% of global wealth managers (up from 81% in 2024) believe AI will be integral to the future of their work.
Wealth managers also continue to recognise the value AI will bring to their industry as a whole, with 82% of UK wealth managers (a slight decrease from 87% in 2024) and 81% of global wealth managers (compared to 82% in 2024) stating that they believe AI will bring benefits to the wider industry.
Commenting on the data, Suman Rao, UK Managing Director at Avaloq, says: “While wealth managers remain highly optimistic about AI, client trust in the technology appears to be falling, showing a clear disconnect. While wealth managers see AI as integral to the future of their work and the industry, many clients are unconvinced about its role in investment decisions and financial planning. Bridging this gap will be critical for wealth managers looking to reap the true benefits AI can offer.
“The human touch will always be important to clients and it may be that we are seeing their broader concerns about AI’s impact on the way we work and live filtering through. But the efficiency and decision-making benefits that AI provides should not be overlooked and wealth managers must take proactive steps to reassure clients about how it is best used. That includes embedding transparency, accountability and strong human oversight into AI-driven solutions.”
