Joseph Twigg – CEO of Aveni
With the largest generational transfer of wealth expected to take place in the UK by 2050, financial advice firms have the opportunity to start capturing a significant market of those currently not using an adviser with bespoke AI tools, according to Edinburgh-based AI fintech Aveni.
A new survey by the Scottish firm and YouGov reveals the challenges of generational trust in financial advice and how advice firms can leverage AI to unlock this £50 billion opportunity to meet the evolving expectations of a digital-first generation.
This trust gap between users and non-users presents a critical challenge – and an opportunity – for advice firms to change the narrative. While 49% of over-55s who don’t currently use financial advice have worked with an adviser before, that number drops to just 24% among 35-44 year-olds.
Confidence among those surveyed who use a financial adviser is high – 93% trust their adviser’s ability to understand their needs with 42% not being happy at the prospect of accessing their financial adviser via AI. The challenge for firms lies in bridging the trust gap for non-users, where 62% of respondents surveyed report uncertainty or indifference towards financial advice. Concerns about hidden fees and adviser motives further fuel scepticism, creating a barrier that transcends gender, age, and region.
However, younger generations who rely heavily on digital tools, are less inclined to seek advice during their early financial journeys. The survey finds that 83% of respondents aged 25–34 would feel comfortable using AI-assisted financial advice if it reduced costs, compared to just 33% of those aged 55 and older. This presents a significant opportunity for firms to introduce AI-powered tools that provide affordable, tailored advice at scale.
This highlights a stark generational divide, with younger clients overwhelmingly open to AI solutions that promise cost-efficiency and tailored recommendations in financial advice. This digital-first mindset positions AI as a powerful tool to meet the expectations of a tech-savvy younger demographic while simultaneously driving operational efficiency for firms.
Furthermore, 86% of younger professionals (25–34 years) surveyed also put value on AI’s role in improving adviser accessibility, a feature they regard as pivotal in their financial planning experience. By contrast, only 30% of those aged 55 and above share this sentiment, emphasising the importance of traditional, relationship-driven advice for the older age group.
The survey data underscores a significant opportunity to harness AI in transforming financial advice delivery, particularly among younger generations who demand affordability, accessibility, personalisation and impact-oriented investment. With these demographics the ones to inherit what is predicted to be £7 trillion in generational wealth transfer in the next 10-15 years there is a significant market opportunity for financial advisers to gain advantage early.
David Kaye, CEO of Puma Investments, said: “As a fund management business we support financial advisers as they work with their clients to meet their long-term financial goals and so we see first-hand the challenges of meeting clients’ high expectations.
“This research reinforces the importance of financial advice and maintaining personal relationships while also highlighting the potential for advice firms to materially improve their service to clients by adopting AI technology. In particular, this technology has the capability to substantially reduce the administrative burden on advisers, freeing them up to devote more time to meeting their clients’ needs.
“We’re proud to have invested in Aveni through our Puma VCTs and to support the business in continuing to make a significant contribution to enhance the financial advice market.”
Jeff Lange, CEO of TFAS Enterprises, added: “AI has the potential to revolutionise financial advice by making it more accessible to a broader demographic. The tools it provides can help advisers to target specific customer segments, offering personalised and insightful interactions to attract new clients needing financial guidance.
“The embedding of AI does however imply a deep culture change that will require financial advisers to be conversant with new tech, its capabilities and limitations. Advisers who can embrace and harness AI’s powerful tools and balance this with important personal client relationships are strongly positioned to succeed and help democratise financial advice.”
Joseph Twigg, CEO of Aveni, said: “These findings reveal a dual opportunity for firms. AI presents a clear opportunity to enhance the accessibility and affordability of financial advice, catering to younger, cost and impact-conscious consumers. But it also reveals the importance of high-touch, personal interactions valued by older generations.
“With firms looking to improve adviser productivity and efficiency to service more clients it is evident that AI can do this, but the subsequent identification and engagement with new generations is going to be imperative for future generations who are yet to embark on the financial advice journey.
“Adopting a nuanced approach that tailors AI integration to specific client segments will enable firms to attract new clients, deepen existing relationships, and enhance overall service quality and productivity.
“Whether it’s streamlining processes for younger demographics or augmenting the traditional advisory model for older clients, AI offers a transformative pathway for firms to differentiate themselves in an increasingly competitive and consolidating market.”
