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Paraplanners harness AI to counter rising regulation pressures
Jenny Davidson
Intermediary Wealth Director, Scottish Widows
As regulatory pressures mount and workloads rise, paraplanners are meeting the challenge head-on by harnessing AI and digital tools to boost efficiency, according to new research from Scottish Widows.
The findings, based on a survey of over 200 paraplanners in the UK, found that almost all (94%) have seen their workload increase because of regulatory change. To tackle these pressures, many are responding with innovation with more than one in five (22%) now using AI either as part of their core processes, or for specific tasks.
Among those adopting the transformational technology, 85% are using AI to save time and automate work such as meeting notes, documentation and recording, while a quarter (26%) are applying it to fact-finding and data gathering. Looking ahead, more than four in five (82%) expect AI to deliver greater time efficiency and reduce administrative workloads in the next five years. This highlights the growing potential of AI tools and can contribute to faster delivery times for customers.
While only about one in ten (12%) firms currently have a formal AI policy already in place, a third (35%) are developing one, signalling growing momentum across businesses of all sizes and a desire to embrace tech solutions.
These findings come as regulatory pressures for paraplanners continue to build. Over four in five (85%) paraplanners say frequent tax and policy changes have disrupted their processes, and almost half (47%) cite the increasing regulatory burden and complexity as their single biggest challenge.
This impact is not just purely operational. Mounting workloads have led nearly a quarter (23%) of paraplanners to report a negative impact on their mental health, and almost one in five (18%) said it has dampened their desire to stay in the industry. Not only this, but as two in five (39%) say their biggest challenge is recruiting and retaining qualified staff, workload pressures are compounding.
However, even as pressures continue to grow, Paraplanners remain resilient. Three in four (75%) remain confident about the future of the paraplanning role, and many continue to work in positive environments – as almost seven in ten (69%) say their firms value them more than in the past, and nearly nine in ten (87%) describe their employer as supportive of the paraplanner role.
Jenny Davidson, Intermediary Wealth Director at Scottish Widows, said: “Paraplanners are the backbone of the advice profession, helping to manage the pressure of regulatory change while keeping client outcomes on track.
“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.
“Adopting and embracing the benefits of AI, combined with continued investment in technology by platforms, will allow paraplanners to focus on the high-value work that drives better client outcomes, rather than administrative burden.”
Read the full report here: The resilient paraplanner - Scottish Widows Insights Hub
Methodology
Research was conducted among 200 paraplanners sourced from Research in Finance’s panel and Professional Paraplanner subscribers. The fieldwork was carried out from 21st July – 7th August 2025
About Scottish Widows
Founded in 1815, Scottish Widows is part of Lloyds Banking Group, the UK’s largest digital bank and financial services group. With more than £232bn assets under administration and over 10 million customers, Scottish Widows’ award‐winning product range includes workplace and individual pensions, annuities, life cover, critical illness and income protection, as well as savings and investment products.
More than 2 million customers access Scottish Widows products and services through the Lloyds Bank and Scottish Widows apps, in addition to accessing directly through independent financial advisers. The Scottish Widows Platform is trusted by more than 18,000 advisers and 5,400 advice firms, that manage the pensions and investments of almost 166,000 clients.