Artificial intelligence is everywhere right now. It can write essays, analyse data, answer complex questions, and it's increasingly being used in financial services. You can already find AI-powered tools that claim to help with budgeting, investing, and even retirement planning.
So it's a fair question: if AI can do all of that, do you still need a financial adviser?
The short answer is yes. AI can make financial planning faster and more efficient, but it can't understand your full circumstances, exercise professional judgement, or be held accountable for the advice it gives.
What can AI do well in financial planning?
There's no doubt that AI is a powerful tool. In financial planning, it can be genuinely useful for crunching large amounts of data quickly, spotting patterns in spending or investment performance, running projections and modelling different scenarios, and keeping on top of administrative tasks.
Used properly, these capabilities can make the advice process more efficient. An adviser supported by good technology can spend less time on number-crunching and more time understanding what actually matters to you: your goals, your family, your concerns, and the decisions that keep you up at night.
At Lathe & Co, we use technology to support the work we do. It allows us to work more efficiently while keeping the focus where it should be: on our clients.
Where does AI fall short?
The difficulty comes when AI is used not as a support tool but as the decision-maker. This is where the risks become real.
AI tools work by identifying patterns in data. They don't understand context the way a human does. They can't read between the lines of a conversation, pick up on the fact that you're worried about something you haven't said out loud, or weigh up the emotional side of a financial decision alongside the numbers.
Financial planning is not just about the figures. It's about understanding that someone approaching retirement might be anxious rather than excited. That a couple going through a divorce needs sensitivity as much as tax efficiency. That a business owner's relationship with their company is personal, not just financial.
AI can process the numbers, but it can't weigh up what they mean to you.
What does the FCA say about AI in financial advice?
The FCA is taking AI seriously. Its Mills Review, published in July 2026, looked at how AI could reshape retail financial services by 2030. It found that around a quarter of UK consumers already trust everyday AI tools for financial advice, with appetite strongest in pensions and investments. These are areas where financial decisions can have significant long-term consequences.
The regulator's position on accountability is clear: using AI doesn't let a firm off the hook. Under the Senior Managers and Certification Regime and the Consumer Duty, firms remain responsible for the outcomes their clients receive, and that means proper human oversight of any process that uses AI.
The FCA has also flagged specific risks, including bias in AI training data and the danger that AI could reduce access to human help when people need it most, such as during financial hardship or bereavement.
Why does human oversight matter?
Good financial advice has always been about more than calculations. It's about asking the right questions, challenging assumptions, and sometimes telling you something you don't want to hear because it's in your best interest.
A human adviser can adapt their approach when your circumstances change unexpectedly. They can hold a difficult conversation with empathy. They can coordinate across different areas of your financial life, from pensions and investments to tax, protection, and estate planning, in a way that reflects who you are, not just what the data says.
AI can support that process, but it's the adviser who brings the judgement, understanding and accountability.
Should you use AI tools to manage your finances?
If you've seen AI tools or apps promising to sort out your finances, it's worth being cautious. For simple tasks like tracking spending or setting savings goals, they can be helpful. However, for anything involving real complexity, real money, or real consequences, there is no shortcut around proper professional advice.
At Lathe & Co, technology helps us work smarter, but our advice remains personal. Every recommendation is carefully considered by a qualified adviser who understands your circumstances, your goals and what matters to you.
Book a call with Rory to discuss your options and find out how we can help.
Important information
This information is for general guidance only and does not constitute personal financial advice. You should seek professional advice tailored to your individual circumstances before making any financial decisions.
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