AI in Financial Services: Unlocking the Future for Advice Firms

As artificial intelligence (AI) rapidly evolves, its impact on financial services is becoming impossible to ignore. What was once considered futuristic or experimental is now at the heart of a growing conversation within advice firms across the UK. The industry is on the brink of significant change and for firms willing to embrace this evolution, AI presents an opportunity to reshape the way advice is delivered, businesses are managed, and value is created. 

Yet for many, the question remains: where do we begin? 

This article explores how AI is beginning to transform the financial advice landscape, what firms need to consider before diving in, and why strategic planning, integration, and data quality are key to realising its full potential. 

The Shift from Concept to Application 

The use of AI in financial services is no longer speculative, it’s already happening. From intelligent document processing to predictive analytics and natural language tools, AI capabilities are becoming embedded in the platforms that advice firms use every day. 

Nowhere is this shift more evident than in the evolution of Practice Management Systems (PMS). These systems have long played a central role in helping firms manage client relationships, compliance, and back-office functions. But the game is changing. The next generation of PMS platforms is becoming smarter and more responsive, thanks to AI integrations that automate routine tasks, surface valuable insights, and even anticipate client needs. 

But the pace of change brings its own challenges. Many firms, especially smaller or mid-sized advice practices, lack the internal capacity, technical knowledge, or time to fully explore the fast-growing AI market. With new tools and providers emerging constantly, it can be difficult to distinguish meaningful innovation from overhyped features. 

The Real-World Benefits of AI 

At its core, AI is a tool and like any tool, its value depends on how it’s used. The most promising use cases for advice firms are those that solve real problems or unlock efficiencies that directly impact client experience, compliance, or profitability. 

Some of the most compelling examples include: 

• Reducing admin burden: Advisers can spend up to 50% of their time on non-revenue-generating work. AI can automate data entry, file management, report creation, and other time-consuming tasks freeing up advisers to focus on higher-value client interactions. 

• Enhancing client engagement: AI can help deliver more tailored advice by analysing patterns in a client’s financial behaviour or preferences and then generating insights that support more personalised conversations and services. 

• Strengthening compliance: By scanning thousands of records for anomalies, missing data, or regulatory red flags, AI can support internal audit functions and reduce the risk of errors or oversights. 

• Improving data accuracy: Natural language processing and machine learning tools can extract and categorise data from documents, emails, and meeting notes reducing manual input errors and improving the quality of a firm’s records. 

Integration, Not Isolation 

One of the biggest misconceptions about AI is that it exists as a standalone solution. In reality, the power of AI lies in its ability to enhance and extend the systems firms already use whether that’s intelliflo office (io), Xplan, Plannr, Curo, or others. 

But to do that successfully, integration is key. Without seamless connections between AI tools and core systems, firms risk creating more friction rather than less. That’s why system compatibility, API readiness, and data flow should be top considerations when evaluating new AI offerings. 

Even more important is the state of a firm’s data. AI thrives on clean, structured, and complete data. Inconsistent formats, duplicate records, and incomplete fields can limit the accuracy and effectiveness of AI tools leading to skewed results or missed opportunities. Before deploying AI at scale, firms must take a serious look at their data hygiene and ensure their underlying systems are in good shape. 

The Strategic Opportunity 

Beyond the operational benefits, AI offers strategic advantages that can help firms respond to industry-wide challenges. The advice sector is under pressure from multiple angles: adviser shortages, increased regulatory scrutiny, and changing expectations from clients who now expect digital convenience and personalised service as standard. 

AI can help firms do more with less. It can support hybrid advice models that combine human expertise with digital engagement. It can help scale services without sacrificing quality or increasing headcount. And it can play a critical role in bridging the advice gap, particularly for underserved segments of the population that may not currently have access to affordable, high-quality advice. 

However, it’s important to be realistic. AI is not a silver bullet, and it won’t solve every problem overnight. It requires thoughtful planning, change management, and a willingness to experiment and learn. It also requires a clear understanding of where AI adds value and where human judgment remains irreplaceable. 

A Path Forward 

The firms that succeed in this new era will be those that make smart, informed decisions about their technology investments. That means asking the right questions: 

• What problems are we trying to solve with AI? 

• How do new tools fit into our existing systems and processes? 

• What data do we have and is it in good enough shape to support AI? 

• What capabilities do we need to build internally to manage and maintain these tools? 

Firms don’t need to answer these questions alone. The right support can make all the difference - whether it’s helping define an AI strategy, selecting the right technologies, or managing integration projects from start to finish. 

To help firms navigate this landscape, the new Jigsaw Tree AI Market Report offers an in-depth look at the current AI solutions tailored for advice businesses paired with our new service, AI Tech Selection, which provides hands-on support to help firms identify and adopt the right tools for their needs. 

If you would like to learn more about what Jigsaw Tree offer then get in contact here