Financial planning firms across the UK are significantly ramping up investment in technology, with artificial intelligence (AI) seen as a transformative force that could shape the industry’s future, according to findings from the Financial Planning Growth Index from Saltus Partnership Programme and L.E.K. Consulting.
The report, based on responses from 200 senior leaders at financial planning firms, revealed that nearly two thirds (63%) of firms expect AI to have the most significant impact on the industry in the next three to five years, with the biggest opportunities seen in simplifying the advice process (26%), enhancing compliance efforts (21%) and improving marketing and lead generation (16%).
This focus on AI comes as investment in technology overall is rising.
Nearly half (46%) of firms said they are prioritising upgrades to existing systems, while more than a third (36%) reported investing in new financial planning tools.
Additionally, 17% of respondents said better client portals were essential for the future of the industry, with 16% highlighting the importance of back office efficiency improvements.
Smaller and mid-sized enterprises (SMEs) said they are embracing technology to drive efficiencies and remain competitive.
Among smaller firms, 27% cited AI for compliance and 21% pointed to advice process simplification as key priorities.
Mid-sized firms showed similar trends, while larger firms are focused on more advanced applications, prioritising back office efficiency (24%) and marketing innovation (21%).
Nick Heath, Head of the Saltus Partnership Programme relationship team, said: “Technology has always been important, but what we are now seeing is a real shift in how financial planning firms are prioritising investment. It’s not just about keeping up – it’s about building smarter, more efficient businesses that can thrive in a fast-evolving environment.
“Our research shows that AI is no longer seen by firm leaders a tomorrow’s pipedream – it’s here today and can be put to work. Firms are looking to understand how to deploy it to serve their clients more effectively, with the benefits increasingly tangible.”
He continued: “Despite varied priorities, the direction of travel is clear: firms of all sizes are betting on technology – and particularly AI – to support performance, efficiency and client experience in the years ahead.
“But many lack the expertise or time to implement it effectively, and this support is one of the things I hear most frequently from Saltus Partnership Programme clients as being invaluable.”
Bronswe Cheung, partner at L.E.K. Consulting, added: “Our research clearly demonstrates the industry’s growing appetite to invest in digital capability, particularly when it comes to AI.
“While smaller and mid-sized firms are using technology to unlock efficiencies and stay agile, larger firms are leveraging their resources to push boundaries in client experience and automation.
“Looking ahead, it’s those firms that embed innovation into their strategic plans – and can adapt as the technology landscape continues to evolve at pace – that will set themselves apart, maintain margin and provide the best possible service to their clients.”
