Over half (58 per cent) of paraplanners believe artificial intelligence should be controlled by a regulator, research from Scottish Widows has revealed.
The Scottish Widows' paraplanner survey, published today (September 5), found that 54 per cent of the 422 paraplanners surveyed see AI as both an opportunity and a threat.
Those surveyed were not all concerned about AI, with 42 per cent saying AI could be useful in their role, while 40 per cent remained neutral.
This positivity was shared by Scottish Widows group head of propositions, Jonathan Sandell, who commented: “I think AI will ultimately allow paraplanners to fast-track lower-value aspects of their role.
“By adding their deep understanding of client needs and objectives, alongside their product and technical knowledge, paraplanners will be freed up to re-focus on higher value activities, cementing their position as the vital human link between technology and clients.”
However, a majority (71 per cent) of paraplanners stated that AI needs to undergo further development and testing.
Only 9 per cent said they are already using AI in their working practice.
Scottish Widows stated that the findings reflect the fact that AI is still at an early stage of development, with specific use cases and dedicated, generative AI tools yet to be fully developed for the financial planning industry.
Technology
The research also found that almost two thirds (64 per cent) of paraplanners believe the technology they currently use could be upgraded.
It additionally found that, when asked how their tech could be improved, paraplanners called for ‘better integration’.
The findings argued that improving technology could alleviate heavy workloads, which 59 per cent of paraplanners believe is the key barrier to them adding more value.
However, one area in which the research argued paraplanners may be getting “short-changed” is on technology decision-making.
Despite being the principal users of technology in their firms, it was found only 9 per cent feel they have “direct influence” on technology-buying decisions, and 55 per cent believe they have some measure of influence.
Scottish Widows intermediary distribution director, Ranila Ravi-Burslem, said: “We understand paraplanners’ frustration with some of the technology they use and it’s clear that they want to see meaningful upgrades to the tech they use in their day-to-day tasks.
“In tune with paraplanners’ aspirations, Scottish Widows is dedicated to putting seamless integration at the heart of our proposition.”
Additionally, the survey found that 86 per cent of paraplanners are confident about the future of the role and the financial advice market overall.
This confidence was said to be rooted in the high regard paraplanners are held within advice firms, with 70 per cent reporting that their contributions are seen as “essential” by the advisers they work with.
Relationships with advisers
The research also found that relationships with advisers are “strong”, with 89 per cent describing them as positive.
However, it also outlined areas for improvement which included client recognition (identified by 40 per cent of paraplanners) and greater awareness of the role outside the industry.
