74% of advice practices now use AI, surpassing global average

According to Adviser Ratings, last year, less than half (45 per cent) of Australian advice practices indicated that they were using or planning to integrate AI into their businesses. A year later and data from the yet-to-be-released 2025 Australian Financial Advice Landscape report revealed this has jumped to 74 per cent.

Comparatively, the Financial Planning Standards Board’s (FPSB) global survey reported that only two-thirds (64 per cent) of practices globally indicated as such.

Highlighting Australian advisers’ growing acceptance of AI, Adviser Ratings reported that just 13 per cent of practices say they have no plans to use AI, a significant drop from 38 per cent in 2024.

“As we look toward the future, the trajectory is clear: AI adoption in financial advice will continue accelerating. Australian practices are not just participating in this revolution but leading the charge, with implementation rates outpacing global averages,” the firm said.

For those already utilising the technology, the most common use is in file note creation and meeting documentation (86 per cent) as they look to streamline “traditionally time-consuming tasks”.

This was followed by use for client engagement tools such as newsletter production (53 per cent), marketing (48 per cent), and statement of advice (SOA) or record of advice (ROA) production (46 per cent).

Looking at what exactly they are using, the firm found that ChatGPT remained the most dominant AI platform, used by 49 per cent of practices, followed by Microsoft Co-Pilot (39 per cent).

Notably, findings showed that only 36 per cent of practices are currently paying for enterprise access or other paid versions of these AI tools, which Adviser Ratings suggested could be a result of lingering concerns regarding AI, specifically in regard to the security and accuracy of these tools.

While improving efficiency is a key intended outcome of leveraging this new technology into businesses, the hope is that this will ultimately help reduce operating costs for practices and improve accessibility for those currently unable to afford advice.

“This is a critical step towards making financial advice more accessible, bridging the gap between what consumers can afford and what advisers currently charge,” the firm said.

With the expectation that AI adoption will continue to grow at an accelerated pace among Australian practices, Adviser Ratings suggested that integrating these tools is “no longer an experimental technology in financial advice – it’s rapidly becoming a competitive necessity”.

“Those practices that embrace these tools most effectively are positioning themselves to enhance profitability and serve more Australians with quality advice at accessible price points,” the firm added.