88% of advice firms put client outcomes at centre of technology strategy, study finds
The findings from TFAS' TechForward programme also showed firms were becoming more proactive in their approach to technology.
Better client outcomes were the leading driver behind technology strategies for 88% of advice firms, research from TFAS Compliance Services has found.
Enhanced service was the second most commonly cited priority, at 65%, while reducing costs and improving profitability were each selected by 47%.
The findings from TFAS’ TechForward programme also showed firms were becoming more proactive in their approach to technology, with 76% describing their firm as more proactive than a year ago.
Some 88% reported making significant or incremental technology changes, with firms looking to gain more value from existing systems alongside selectively adopting new tools.
However, integration with existing systems remained the most frequently cited barrier to technology change, at 69%.
More than half (56%) pointed to the time required for staff to learn new tools, while 50% cited the cost of switching or integration.
Artificial intelligence (AI) tools were the most frequently reported category of technology adopted or upgraded during the past year.
Some 35% of respondents said AI was embedded in their firm’s day-to-day workflow, while the same proportion were trialling a dedicated tool.
A further 18% were experimenting with AI informally and 12% said they were not currently using it.
Meeting notes and call summarisation were the most commonly reported uses, followed by client communications, while firms were also using AI for file checking, research or suitability-report drafting, compliance and marketing content.
Uncertainty around regulatory expectations and data security were the most frequently cited barriers to expanding its use.
The research found 88% of respondents would be comfortable with AI flagging anomalies in client data once the task had been defined.
Some 59% were comfortable with it preparing meeting briefings, scheduling and prioritising follow-ups, and drafting client communications.
When asked about controls, 76% wanted the ability to set boundaries around what AI could act on and 71% wanted a clear audit trail showing what it had done and why.
Errors going unnoticed and losing the personal touch with clients were the most commonly cited concerns about autonomous AI, each selected by 59%.
Richard Ardron, chief commercial officer at TFAS Enterprises, said: “Through TechForward, 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.”
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