AI trust gap splits UK wealth managers and their clients, study shows

By Gloria Methri

Artificial intelligence is becoming increasingly integral to wealth management. According to recent research by Avaloq, 87% of UK wealth managers believe that AI will play a crucial role in their future work.

The report, which surveyed over 300 wealth managers and 3,000 investors globally, reveals a strong belief in AI’s potential to revolutionise the industry. Yet, it also uncovers significant trust issues among clients that could slow its widespread adoption.

The research highlights several areas where UK wealth managers see AI adding substantial value. The most promising application is in client onboarding, with 86% of respondents saying AI could significantly improve the process. Other areas with strong potential for AI enhancements include automating the creation of client meeting summaries (65%), streamlining compliance monitoring (64%), and performing regulatory checks (61%).

Despite these positive outlooks, there’s a barrier when it comes to client trust. The report found that a quarter of wealth managers (24%) believe their clients would never trust AI for investment decisions, and a similar proportion (27%) expressed doubt that clients would ever trust AI for financial planning. This caution is reflected in the broader investor community as well—only 7% of UK investors are comfortable relying entirely on AI for investment advice. In comparison, 55% reject AI involvement altogether in their financial decisions.

The lack of client trust may stem from the traditional nature of wealth management, which relies heavily on personal relationships and human advisors.

Gery Zollinger, Head of Data Science and Analytics at Avaloq, noted that while AI offers numerous benefits—such as freeing up time for managers to focus on client relationships and strategic decision-making—the human element remains essential. Zollinger added, “For AI to be successful, wealth managers need to work closely with their clients to demonstrate its value while ensuring transparency and understanding of how the technology impacts their portfolios.”

The findings also suggest that robo-advisors have not gained significant traction among high-net-worth individuals, with only 6% of affluent to ultra-high-net-worth investors currently using them. This limited adoption may reflect concerns about the loss of personal connection and the role of human intuition in managing complex wealth portfolios.

As the industry looks ahead, the research underscores the need for wealth managers to find a balance between harnessing AI’s potential and maintaining the personal touch that underpins trust in financial advisory services. With AI poised to transform processes across wealth management, the real challenge may lie in bridging the trust gap between technology and clients.