While the costs of running a financial advice business continue to climb in 2025 -– from regulatory and staffing expenses to the Compensation Scheme of Last Resort levy – experts say AI infrastructure is increasingly a non-negotiable investment.
“If you’re not embracing technology, you’re already behind,” Marshan Consulting founder Ben Marshan said.
“The data shows 74 per cent of practices are using or planning to use AI,” Marshan added, referencing findings in the 2025 Adviser Ratings Advice Landscape report.
If integrated well throughout an advice business, AI can offer strong efficiency gains.
Tasks such as compliance checks, billing, document generation and marketing activities can be effectively streamlined, affording advisers more valuable face-to-face time with clients.
Marshan said the efficiency gains are clear in the numbers.
“The tech-savvy practices operate with 55 per cent fewer staff while maintaining high service standards and achieving profit margins at least 10 per cent higher than their competitors,” he said.
He added that these firms also report a 40 per cent reduction in advice preparation time, describing the efficiency gains as “transformational” for practices.
Michael Zelencich, who recently set up his own advisory firm Keenan Financial Services, also stressed the importance of integrating AI.
“Something we’ve adopted is the use of AI for file noting and recording meetings and being able to accelerate the advice process through that efficiency,” he told ifa.
“There’s certainly a lot of efficiencies that I’d be encouraging new practices to be looking at and using.”
However, to fully capitalise on the benefits of AI integration, Marshan said new practices should be looking at custom, advice-oriented technology, which can sometimes prove costly. Free, open-source AI tools such as ChatGPT can serve a purpose but are deeply limited in their capabilities and are not specialised tools.
“Your core stack needs a proper CRM, and an investment platform,” Marshan said.
“Don’t try to cobble together free tools and spreadsheets. We can see you in the data, and you’re the ones working weekends.”
Marshan recommends that new practices allocate $10,000 to $20,000 each year to their technology stack. While costly for firms already juggling operational and regulatory fees, he argued the investment is unavoidable.
“Just two years ago, AI in advice was largely theoretical. Now, it’s becoming a table stake for efficient operations.”
“…working weekends” = complying with ASIC’s mind-numbing compliance requirements that no one reads or needs, except when used as a weapon against the hapless adviser, who is busy working weekends to keep head above water.