One in five Paraplanners (22%) are using AI for either specific tasks or as part of their core processes in response to a growing workload.

Almost all (94%) of the 200 UK Paraplanners surveyed by Scottish Widows said they had seen their workload increase as a result of regulatory change.

Among those using AI, 85% were using it to save time and automate work such as meeting notes, documentation and recording. A quarter (26%) were applying AI to fact-finding and data gathering.

The majority (82%) of Paraplanners said they expect AI to deliver greater time efficiency and reduce administrative workloads in the next five years.

Despite growing use of AI, only 12% of firms currently had a formal AI policy in place. A further third (35%) said they were developing one.

Jenny Davidson, intermediary wealth director at Scottish Widows, said: “What stands out in our research is a profession that remains remarkably resilient, even as workloads rise and the pace of policy change accelerates. But resilience alone isn’t sustainable and many paraplanners are embracing AI as a gamechanger to streamline processes and free-up valuable time.

“This presents both opportunities and challenges, and with few formal policies in place, it’s key that the industry supports paraplanners with the right technology, the right integrations and the right training as AI becomes more integral to the everyday.”

Mounting workloads for Paraplanners were predominantly driven by regulatory change.

Over four in five (85%) of Paraplanners said frequent tax and policy changes had disrupted their processes, whilst half (47%) cited increasing regulation and complexity as their single largest challenge.

The increased workloads were having an impact on the happiness of Paraplanners. Nearly a quarter (23%) of those surveyed reported a negative impact on their mental health, with 18% saying it had dampened their desire to remain in the industry.

Pressures were also continuing to rise as two in five (39%) said their biggest challenge was recruiting and retaining qualified staff.

Despite the pressure, Paraplanners remained confident in the industry. Three quarters (75%) said they remain confident about the future of Paraplanning as a role, whilst two thirds (69%) said their firms value them more than in the past. The majority (87%) described their employer as supportive.

• Research in Finance surveyed 200 Paraplanners on behalf of Scottish Widows between 21 July and 7 August.