Only one in 20 independent financial advisers currently use AI despite half believing it presents an opportunity for their businesses, according to a new study.

Insights agency Opinium found a wide mix of opinions about the advantages of IA when it comes to services for clients.

Only 6% of IFAs said they were using any artificial intelligence despite 49% saying that AI presented a business opportunity. 

While many were positive about AI, almost a third (32%) said they believed that AI was a risk to their business.

More than a quarter (27%) of advisers said they thought AI will eventually have a positive impact on their firm.

However, just under a quarter (23%) said they thought artificial intelligence would have a negative impact on the advice sector as a whole.

Alexa Nightingale, global head of financial services research at Opinium, said: “With the use of AI tools becoming more widespread, now is a better time than ever for IFAs to start getting comfortable with how best to integrate this technology into their day to day practices.

“It’s clear that advisers have mixed feelings about the rise of AI and the impact it could have on the industry and their businesses – but given it is unlikely artificial intelligence is going anywhere, it’s key that advisers get on board.”

In February the Treasury wrote to the FCA and other regulators asking them to disclose their strategies on AI regulation.

Last month Financial Planning Today columnist Phil Billingham said that while he, “can see AI making providers more efficient – providing factual information and data,” and “it helping Paraplanners produce more consistent research on how to implement advice”, he believes AI will not replace human advisers.

He said: “I just don’t see it replacing the intuition and flexibility and connection the true adviser brings to their client relationships….yet.”

• Opinium Research carried out an online survey of 200 financial advisers, between 3–12 July.