Client trust in artificial intelligence (AI) appears to be declining despite wealth managers remaining positive about the technology, according to new research from Avaloq.
Avaloq’s study found that two fifths (40%) believe clients will never trust the use of AI in investment advice, an increase from 24% in 2024.
The picture is similar when it comes to financial planning, with the same number reporting that clients will never trust AI in this area compared to 28% in 2024.
Despite this apparent decline in client trust, UK wealth managers remain confident in the potential for AI to support them in their roles.
Overall, a significant majority (87%, the same proportion as 2024) believe AI will be integral to the future of their work.
And 82% of UK wealth managers said they think AI will bring benefits to the wider industry.
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Suman Rao, UK managing director at Avaloq, said the figures show a “clear disconnect” between wealth managers and clients when it comes to AI usage.
“While wealth managers see AI as integral to the future of their work and the industry, many clients are unconvinced about its role in investment decisions and financial planning.
“Bridging this gap will be critical for wealth managers looking to reap the true benefits AI can offer.
“The human touch will always be important to clients and it may be that we are seeing their broader concerns about AI’s impact on the way we work and live filtering through.
“But the efficiency and decision-making benefits that AI provides should not be overlooked and wealth managers must take proactive steps to reassure clients about how it is best used.
“That includes embedding transparency, accountability and strong human oversight into AI-driven solutions.”
The survey took in the views of over 400 wealth managers worldwide.
