Seventy per cent of financial planning firms have reported that AI will not impact their headcount this year, with just 3% planning to reduce current staffing levels as a result of this technology, The Saltus Partnership Programme has found.

The firm’s Financial Planning Index, which was launched with L.E.K Consulting, is a survey of over 200 senior leaders in financial planning firms.

The research found that firms expect to generate a host of benefits through AI, with the technology widely viewed as a "transformative force" set to reshape the industry over time.

While the majority of firms said AI will not impact their headcount this year, 13% said they will reduce additional hiring.

Saltus stated that this suggests the technology is "being embraced as a tool to enhance, rather than replace, existing teams", particularly apparent as firms look to relieve pressure on adviser capacity and protect time spent on client relationships.

When discussing the benefits of AI, 55% of firms saw administrative efficiencies as the best use of this technology, while 32% cited efficiencies in financial planning support.

In the next one to three years, over a third (34%) of firms plan to upgrade existing technology systems, while 26% intend to develop an AI capability. Alongside this, 24% plan to implement new financial planning tools, rising to 30% among firms with AuM below £20m.

The index also revealed that 26% of firms believe technological advancements will have a "significant impact" on the industry in the next three to five years, marking an increase from 21% recorded in November 2024.

Head of relationship management at The Saltus Partnership Programme, Nick Heath, said the latest data shows that AI technology is "about empowering people, not replacing them".

He stated: "As AI continues to evolve, it’s unlocking opportunities for firms to tackle key challenges and drive efficiency, from administrative tasks, to planning support or reducing risk within investment portfolios."

Partner at L.E.K. Consulting, Bronswe Cheung, added: "As AI adoption accelerates, firms must adapt in order to remain competitive. The data shows that firms not only recognise the immense possibilities of AI, but are also clear on how they stand to benefit.”

"The adoption of AI must be accompanied with a re-invention in the operating model to realise the true benefit."

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