Australian advisers embrace AI, but governance lags as firms battle capacity constraints
Nick Eatock
More than four in five Australian financial advice firms are now using artificial intelligence (AI), yet fewer than half have formal policies governing its use, according to new research from global adviser technology provider intelliflo.
The inaugural Australian Advice Efficiency Survey[1] reveals an advice profession rapidly adopting AI and digital tools to improve productivity, while simultaneously grappling with capacity constraints, inefficient workflows and growing client expectations for digital engagement.
The findings come as the industry looks to technology to help expand access to financial advice amid persistent adviser shortages and ongoing regulatory reform efforts designed to make advice more affordable and accessible.
According to the survey, more than 80 per cent of advice firms are already using AI, with file notes emerging as the most common use case, followed by advice document generation and client engagement activities.
However, fewer than half of respondents have implemented formal AI governance policies, highlighting a growing gap between adoption and oversight.
The survey also found:
- Only one in 10 advisers rate their current business process efficiency positively, while 90 per cent have a neutral or negative view of their operational efficiency.
- Four in five advice firms have automated less than half of their workflows.
- Conversely, 80 per cent would like between 50 and 100 per cent of their workflows to be automated.
- Onboarding and SOA/ROA generation were identified as the areas where advisers most want greater automation.
- Nearly three-quarters of advisers now operate a hybrid client engagement model combining virtual and face-to-face meetings.
- Technology limitations are the second-largest constraint on business growth, behind adviser capacity.
- More than half of advisers believe responsibility for AI-generated errors ultimately sits with the advice business itself.
Nick Eatock, CEO and co-founder of intelliflo, said the findings show the advice profession has moved beyond experimenting with AI and is now embedding it into core business operations.
“AI has firmly entered the mainstream of financial advice,” Eatock said. “We’re seeing advisers use AI not just to plug administrative gaps, but increasingly to support core advice functions, client engagement and documentation. The profession has clearly recognised the role technology can play in helping advisers operate more efficiently and serve more Australians.”
However, Eatock said the survey also highlighted an important challenge for the profession.
“The speed of AI adoption is outpacing the development of governance frameworks inside many advice businesses.”
“Advisers are understandably enthusiastic about the productivity gains AI can deliver, but they’re also telling us they want greater certainty around how these tools should be governed, monitored and applied within a regulated advice environment.”
The research suggests advisers remain under significant operational pressure despite growing investment in technology.
Almost half of respondents identified adviser capacity as the single biggest barrier to growing their client base, while only a small minority believe advisers can sustainably service more than 250 clients under their current operating model.
Eatock said these findings reinforce the need for advice businesses to continue investing in technology and workflow optimisation as the profession seeks to close Australia’s advice gap.
“Technology alone won’t solve the capacity challenge, but it is one of the most powerful levers available to the profession,” he said.
“Australia has approximately 15,000 financial advisers supporting millions of Australians who need help making financial decisions. If we want advice to become more accessible, businesses need tools that reduce administrative burden, improve efficiency and allow advisers to spend more time doing what they do best – helping clients.”
The survey also found advisers remain highly focused on improving digital experiences for clients, with secure communication, digital onboarding, workflow automation and system integration among the most requested enhancements.
“As the industry moves through regulatory reform and prepares for the next generation of clients, firms that successfully combine technology, efficient processes and strong governance frameworks will be best positioned to grow,” Eatock said.
“Ultimately, the goal isn’t to replace advisers with technology. It’s to use technology to amplify adviser capability, improve client outcomes and help more Australians access quality financial advice.”
