Could AI help to close the advice gap?

28 Jan 2026

First seen in Professional Adviser

The artificial intelligence (AI) revolution is well and truly upon us.

Whether it's something personal like asking a generative AI like ChatGPT to dream up recipes based on what is left in the fridge, or leaning on the support and insight of a large language model to assist professionals at work, almost all of us have had some sort of interaction with a chat bot or "agent", as it's more commonly referred to within AI lexicon.

Financial services is an industry that has not shied away from the new technology. Already 75% of firms are using it in some capacity, according to research by the Financial Conduct Authority (FCA) and the Bank of England, with a further 10% planning for some sort of AI adoption in the next three years.

It follows then that these agents will increasingly be more widely adopted throughout the industry; they already form the initial basis of most searches from browsers and are being further integrated into smartphones. I wonder how long before apps disappear and the primary interaction is directly through the agent itself.

AI provides a chance to boost engagement

Today's dashboards and adviser portals already simplify complex calculations and help advisers guide clients through the maze of pensions taxation, withdrawals, and optimal investment and savings strategies. What is limiting, however, is the personal touch; these systems are designed for the general user and in some cases based on strict regulatory guidelines. It is the purview of the adviser to offer the personal touch. Whilst this critical advice service will continue, it's exciting to consider extending these capabilities to non-advised users, making use of conversational agents to help engage users and even direct them towards professional advice.

Imagine a world in which a saver – advised or non-advised – could simply ask a bot: "how much can I safely draw down each year?" And in response, they would receive a personalised answer complete with targeted follow-up questions and tailored guidance, all in plain, accessible language. For non-advised savers, this could mark the first time getting immediate, practical answers with clear, context-driven explanations. Anything they don't understand they can ask for it to be explained in a different way.

Can we close the advice gap?

So, with practical, personalised guidance theoretically available for those without a financial adviser, is it safe to say bots could go some way to closing the advice gap? Well, sort of.

The answer is, of course, more nuanced than a simple yes or no. Agents won't replace human advisers for complex, regulated planning. But for the millions locked out of face-to-face advice, they can go some way to bridging the gap by bringing basic but valuable help to those who need it, round-the-clock, and at scale; they can supplement and even highlight the value of advice.

Now, back to reality for a moment. Delivering this vision won't be simple, and the UK's investment ecosystem must evolve if it is to work. Data remains fragmented across providers. But there is at least cause for optimism. The FCA's DP24/3 discussion paper shows us that the regulator is absolutely on the case when it comes to technology solutions, and indeed sees the use of technology as being key to making targeted support work as a solution to closing the advice gap.

For tech to work for consumers in this way, standardisation is key. Bots face obstacles if they can't access the latest pension values, salary details or tax rules. Creating common APIs and minimum performance benchmarks – set and monitored by the FCA – will help democratise financial guidance, ensuring bots deliver reliable, transparent and actionable support under Consumer Duty expectations. Whether the regulator will set these standards, however, remains to be seen.

The future of pensions engagement won't be app- or dashboard-centred, instead it will be conversational. If the sector, regulators and technology providers act now to break down data silos and set clear performance standards, a new engine of financial inclusion will emerge; one that works to shrink the advice gap, improve access to guidance for all, educates consumers as they engage with their pensions, and offers millions personalised support, exactly when and where they need it.

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