UK financial planners see AI boosting efficiency, not cuts

Saltus Partnership Programme and L.E.K. Consulting have published the second edition of their Financial Planning Growth Index. The survey found that 70% of UK financial planning firms expect AI to have no impact on headcount this year.

Based on responses from 216 senior leaders at firms of various sizes across the UK, the research suggests the sector views AI primarily as a tool for operational improvement rather than as a means of immediate workforce reduction.

Just 3% of firms planned to reduce current staffing levels because of AI, while 13% said the technology would reduce the need for additional hiring. The figures suggest most expect AI to change how work is done without leading to widespread job cuts in the near term.

Administrative work emerged as the area where firms see the clearest benefit. More than half (55%) identified administrative efficiencies as AI's greatest potential advantage, while 32% pointed to efficiencies in financial planning support.

This points to a measured approach to adoption. Rather than using AI to overhaul business models, many firms appear to be focusing first on routine internal processes that absorb staff time and limit adviser capacity.

Investment plans over the next one to three years reflect that pattern. A third of firms (34%) said they intended to upgrade existing systems, while 26% planned to develop an AI function. Another 24% expected to introduce new financial planning tools, rising to 30% among firms with assets under management below £20 million.

The findings also suggest firms are weighing AI alongside broader technological shifts. More than a quarter of respondents (26%) said technological advances would have a significant effect on the industry over the next three to five years, up from 21% in the previous reading in late 2024.

Adoption patterns

The survey presents AI as part of a broader push to improve efficiency and maintain profitability in a market where advisory firms face pressure on margins, regulation and staff time. In that context, tools that reduce time spent on administration or support work may be more attractive than systems aimed at replacing front-line advisers.

Smaller firms showed particular interest in new planning tools. The data may reflect the challenge of scaling operations with limited support functions, as well as the need to compete with larger rivals that can spend more on systems and process redesign.

"It's significant that 70% of firms say AI won't affect their headcount - this technology is about empowering people, not replacing them. As AI continues to evolve, it's unlocking opportunities for firms to tackle key challenges and drive efficiency, from administrative tasks to planning support or reducing risk within investment portfolios," said Nick Heath, Head of Relationship Management at Saltus Partnership Programme.

"The Saltus Partnership Programme provides access to technology, alongside dedicated support and specialist expertise, to help firms navigate this transition and deliver better outcomes for both their business and clients."

While firms are not expecting major staffing cuts this year, the report points to a more gradual shift in operating models as adoption spreads. Responses emphasised targeted use cases, system upgrades and support tools rather than rapid restructuring.

Competitive pressure

The research also points to competitive pressure as a factor in adoption. Firms that delay investment may risk falling behind peers that can process client work more efficiently or free advisers from manual tasks.

"As AI adoption accelerates, firms must adapt in order to remain competitive. The data shows that firms not only recognise the immense possibilities of AI, but are also clear on how they stand to benefit," Bronswe Cheung, Partner at L.E.K. Consulting, said.

"The adoption of AI must be accompanied by a reinvention of the operating model to realise the full benefit," Cheung added.

Beyond AI, the index described sentiment in the financial planning sector as broadly optimistic, with firms reporting confidence in their growth prospects. The survey offers a snapshot of how senior leaders viewed technology, hiring, and investment priorities across the industry at the time of the research.

One of the clearest findings was the gap between expectations of operational change and job losses, with 70% of firms saying AI would not affect headcount this year and only 3% planning to reduce existing staff because of the technology.