UK wealth managers embracing AI faster than global peers

UK wealth managers are embracing artificial intelligence (AI) at a faster rate than their global peers, although clients remain cautious about its role in managing their wealth, analysis from Avaloq has shown.

It found that 93 per cent of UK wealth management professionals expected AI to become integral to their work within two years, up from 87 per cent last year and above the global average of 84 per cent.

Confidence in the benefits of AI was also rising, with 90 per cent of UK wealth managers believing it will benefit the industry, an increase from 82 per cent in 2025 and higher than the global average of 76 per cent.

While UK wealth managers were embracing the technology, clients were found to be more cautious.

Fewer than half (43 per cent) said they would feel comfortable with AI assisting a human adviser in providing investment advice, 9 percentage points lower than the global average of 52 per cent.

Furthermore, 48 per cent would prefer to not have any AI involvement in advice, compared to 34 per cent globally.

Just 42 per cent of UK investors would be comfortable with their wealth manager or bank using AI, compared to 50 per cent globally, and 27 per cent felt uncomfortable with its use, 8 percentage points above the global average of 19 per cent.

Avaloq noted that although UK wealth managers were especially enthusiastic about AI, the UK trailed leading global wealth management markets on wider digital adoption.

Its Wealth Management Index’s ‘technology and digital adoption’ pillar highlighted that the UK could strengthen its digital foundations compared with leading markets, across areas such as digital skills, cybersecurity readiness, and emerging technology adoption.

“AI is rapidly moving from an emerging technology to something UK wealth management professionals expect to become a fundamental part of how they work,” commented Avaloq managing director for the UK and Ireland, Suman Rao.

“However, enthusiasm within the industry needs to be balanced with how clients feel about the use of the technology.

“Our survey findings show that many investors remain cautious about the use of AI in managing their wealth, particularly when it comes to decisions as important and personal as where their money is invested.

“Building confidence will require firms to be transparent about where and how AI is being used, while keeping human judgement and expertise at the centre of the client relationship.

“At the same time, enthusiasm needs to be matched by readiness. As our Wealth Management Index shows, the UK still has room to strengthen the wider digital foundations that will support the next generation of wealth management.

“For firms, that means building the technology, data and skills needed to deploy AI effectively, while ensuring it ultimately delivers tangible benefits for advisers and their clients.”

---