Financial Adviser Survey 2026: five takeaways for every advice firm

Despite a significant majority viewing growth prospects positively over the next year, the survey unearthed a gap between that confidence and the capabilities to realise the opportunities of more diverse client bases, AI moving more aggressively from concept to action, market consolidation, and the rise of private markets.

1. Confidence is at a record high, and it's warranted

Among swathes of confidence drivers, the most consistent drawn from the survey was technological enablement. 42% of respondents said technology would be the primary performance enhancer, with AI of course being the marquee shift in advisers’ stacks in recent times.

AI-enabled advice tools and platforms have given rise to a growing number of use cases, including: automated notetaking, assistance with suitability reports and client understanding, insights surfaced automatically through data trends, generative client communications, and support with compliance and reporting.

Adoption levels are high, too, with 95% of respondents saying they had already deployed AI tooling within their businesses. 45% said it was being used extensively across operations.

"Advisers recognise the need for adviser-specific AI tools,” said Jodie Gallagher, Head of UK IFA Product at FE fundinfo. “AI can only be as useful as the data it has access to, so tools that can integrate with Nexus platform data and your CRM will provide more value by operating with context across more of your workflows.

“From a compliance perspective, firms need tools built for sensitive client data that incorporate adviser sign-off and have strong anti-hallucination mechanisms. Until the FCA provides specific guidance, firms need to be able to justify their choices."

2. The client base is getting younger

Along with AI rollout giving rise to significant changes within the advice process, advisers’ client bases are showing a generational shift. While the over 50s have typically accounted for the largest proportion of adviser clients, the survey’s respondents cited the under 40s as the largest age cohort across their practices, accounting for 32% of the total. More broadly, 96% of respondents said the proportion of under 50s they serve is on the rise.

With younger clients typically being associated with greater tech savviness, longer time horizons and a higher likelihood of ESG-adjacent priorities, this shift towards younger clients could see a shift in expectations to which advisers must adapt.

Firms are already deploying AI at pace, but advisers must also be prepared for tech-savvy clients who have incorporated their own AI usage into their financial planning and expectations. Where advisers were previously the key arbiters of financial advice, clients are increasingly likely to come to the table with their own AI-supported research.

Where democratisation of private markets is concerned, younger clients with longer time horizons may prove more suitable for illiquid investment opportunities.

Maryam Longrus, Head of Private Markets at FE fundinfo, said: "The largely illiquid nature of private markets could prove well-suited to a younger client base for whom liquidity isn't necessarily essential to their investment strategies, alongside having the time horizon to benefit from it.

“The growing prevalence of impact-focused funds within the asset class adds a further dimension, giving advisers a credible way to respond to clients with ESG considerations."

3. AI has moved from pilot to practice

With 95% of surveyed advisers having deployed AI tooling already, we are now in an era where AI-supported advice is the norm. Those who have onboarded such tools are already reaping significant benefits.

51% of AI-using firms reported saving over five hours per user per week through automations and newfound efficiencies, with 44% saving between two and four hours. Against an eight-hour work day, AI is already saving almost a full day’s worth of hours per adviser for a small majority of respondents, and it’s time that can be redirected towards closer client relationships.

As to the tools that have been onboarded, the biggest deployment has been towards data analysis and reporting (40% of respondents), followed closely by the 39% who use LLMs like ChatGPT and Claude to support research and drafting.

AI use cases cited by surveyed advisers

Copilot’s deployment rate is unsurprising when we consider that Microsoft Office remains ubiquitous and the AI tooling is included within Enterprise packages.

While adviser-specific tools rank last at 34%, this may be a reflection of vendors catching up with the market.

Where advisers can use free or cheaply-priced AI tools like ChatGPT to support with data interpretation, communications, and reporting, adviser-specific tooling must find a way to add value to those functions, unify workflows within one platform, and offer seamless integration with existing stacks.

Nexus for Financial Advisers, pulling together the full suite of FE fundinfo’s IFA-focused products along with the Nexus Assistant AI layer, readily demonstrates the possibilities with more features to come. As to the barriers to AI rollout, the most cited by respondents was client acceptance and trust (36%).

Clients naturally come to advisers for their own expertise and trust is both inherent and critical to this relationship. Advisers can counter this challenge with transparency around where AI is deployed in their businesses, as well as using the time saved through automations to maximise time spent with clients.

This challenge was followed by 29% who said they struggle to select tools among myriad options, 27% for whom data security and confidentiality is a concern, and 25% who question the accuracy and reliability of AI outputs. In a bullish tech space, there is indeed a huge number of AI tools to choose from, each with their own feature sets and potentially unproven ROI.

As the AI market continues to mature, best-in-class solutions will surface and the selection challenge will self-correct. Data security and confidentiality are a natural concern, too, not least with firms beholden to rigorous compliance standards. As for the accuracy and reliability question, this is a sticking point that can be remedied at the firm-level with modernised data management practices.

Many firms, however, may be unaware of the gains they can make in this area.

4. There's a gap between data confidence and data reality

At the outset, we said that confidence is outrunning capability, with technology being the leading cause for advisers’ positive outlook.

While AI is being deployed and new efficiencies are already bearing fruit, the survey unearthed a gap in data confidence and data realities that will stymie AI’s ceiling. 94% of respondents agreed with the statement, "I have access to accurate, usable client data across my practice,” and yet 55% said they still rely on spreadsheets for management information (MI).

For those who both believe they have access to quality data and rely on spreadsheets, there’s a mismatch in thinking. Manual spreadsheets require significant oversight and regular updates, and they’re exposed to human error. Not only that, but they aren’t structurally suitable for feeding into AI systems.

Firms that fail to modernise their data practices will not only find it more challenging to deploy AI, but they will fail to realise its full benefits when they do. Data management and reconciliation, done manually, are also a major time sink for firms, and progressing away from those practices is an opportunity that needn’t be left on the table.

“Operations teams often tell us their business leaders don't see the data reconciliation burden their staff are carrying,” said David Scholes, Director of Wealth Sales at FE fundinfo. “But leaders do notice the symptom: gaps in their management information.

“Without reliable MI, firms can't optimise their charging model, can't see where their growth opportunities lie, and, most acutely, struggle to answer the question that matters most when it comes to a sale: what is this business actually worth?"

5. Two opportunities are being left on the table

Beyond modernising their data practices, many firms have missed the opportunities presented in two key areas: cashflow planning, and tool sprawl.

Cashflow planning remains focused on older clients, with only 27% of respondents saying it’s offered across the full breadth of their client bases. As under 40s now represent the largest share of those client bases, firms that limit their cashflow planning to specific clients ought to consider the benefits posed by offering the service more widely.

Of the 81% who offer cashflow planning within their advice processes, the cited benefits are sprawling.

49% said it improves client engagement and understanding, offering the potential for stronger relationships even amongst clients with less complex financial needs. 44% said it supports suitability and compliance, 43% highlighted the benefits to tax-efficient planning, 36% said it facilitates annual reviews, 31% said it’s a competitive differentiator, and 30% said it demonstrates clear value to clients.

That latter point comes with the caveat that the benefit is perhaps clearest for advisers; stronger relationships, a greater sense of client-level tailoring, and greater retention.

The advantages of offering cashflow planning, cited by surveyed advisers

"While the survey respondents see the benefits of cashflow modelling in decumulation, some may want to consider the use cases in accumulation,” said Rob Blake, Director of Wealth Sales at FE fundinfo.

“Of course, many things can change up to the point of retirement, but cashflow modelling can be an effective communication and education tool for younger clients; not least on the value of maximising ISA or pension contributions from an early stage through a tax-aware cashflow tool like FE CashCalc's gross modeller."

The 19% of respondents who do not offer cashflow planning are missing out on these benefits entirely, while the 81% that do should consider the potential for amplifying their services by offering the service across the board.

With the time saved through AI deployment, and the availability of robust cashflow planning tools like FE CashCalc, room is already made for a more aggressive rollout of cashflow planning.

Meanwhile, the proliferation of tech solutions via digital transformation efforts have yielded problems of their own making: too many solutions, capability overlap, inefficient tech spend, and the need to reconcile information between disconnected systems.

Consolidating tech stacks down with all-in-one solutions like Nexus for Financial Advisers, or otherwise focusing on onboarding solutions that integrate with central systems, stands to course-correct towards leaner, more efficient tech suites.

Significant challenges, and a clear answer

The mood in the advice space is upbeat. With a significant rise in positive outlooks, clear benefits offered by AI tooling, and opportunities waiting to be sprung upon across younger clients, private markets, data modernisation, cashflow planning and software consolidation, advisers are right to see promising avenues for growth in all quarters.

However, many firms remain underprepared to take full advantage. Without developing robust data practices, meeting the expectations of changing demographics and expectations across client bases, and evaluating their tech stacks for efficiency and futureproofing, advisers may find that their successes fall short of their potential.

FE fundinfo’s suite of products, centralised through the Nexus platform, stands ready to serve as the backbone of modernised practices that reconcile many of the challenges faced by advisers.

Accurate and timely data, automations across the advice process, and end-to-end service delivered through a unified platform are readily available through Nexus.

To find out more, reach out to our team today.

For the full report, download the 2026 Financial Adviser Report here.