More than half of Paraplanners (54%) see AI as both an opportunity and a threat.

A clear majority (71%) also believe AI needs further development and testing and 58% want AI to be controlled by a regulator.

Only 9% of Paraplanners are currently using AI in their practice.

The survey of more than 400 Paraplanners carried out for Scottish Widows revealed some interest in using AI but wariness about its risks.

Survey findings included:

• 42% believe AI could be useful in their role, while 40% were neutral
• A strong majority (71%) believe that AI needs to undergo further development and testing
• A majority (58%) agree that AI needs to be controlled by a regulator

Overall, improved technology and better connectivity were top of Paraplanners’ wish list, according to the latest data from the Scottish Widows Paraplanner Survey.

A significant majority (64%) of Paraplanners believe that the technology they currently use could be upgraded and this was particularly the case among larger firms.

In terms of improvement most Paraplanners wanted “better integration” to cut down on re-keying data. Scottish Widows says there is potential to make greater use of platforms that offer real-time data integrations with CRM systems and tools that Paraplanners use.

Some 59% of Paraplanners believe that poor technology is the key barrier to them adding more value. However, despite being the principal users of technology in their firms, only 9% feel they have direct influence on technology-buying decisions, with 55% believing they have some influence.

The survey found that an overwhelming majority (86%) of Paraplanners are confident about the future of their role and the financial advice market overall. Some 70% report that their contributions are seen as ‘essential’ by the advisers they work alongside.

Relationships with advisers are strong, with 89% describing them as positive. Areas for improvement include client recognition – 40% of Paraplanners feel their value is not always recognised by clients – and greater awareness of the role outside of the industry. A 71% majority of Paraplanners surveyed believe an industry-approved definition of the role would be useful.

Ranila Ravi-Burslem, intermediary distribution director, Scottish Widows, 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.”

Jonathan Sandell, Scottish Widows group head of propositions, said: “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.”

The Scottish Widows Paraplanner Survey questioned 422 Paraplanners from across the UK. The latest survey was carried out by market researchers Research in Finance in June.

Scottish Widows is part of Lloyds Banking Group and has nearly £170bn assets under administration and 6 million customers.