It’s not just Jive Talkin’, AI Ch-Ch-Changes everything, With or Without You

Last month, I opened my article with a story about a dog I had seen on stage at a gig. It’s an odd thing, but, having read that piece, the thing that most people who messaged me took away from it, was the ‘fact’ I was a fan of Status Quo. I’ve always thought my music taste was a bit more nuanced than that, so to set the record straight, and with due respect to those in the ‘Quo Army’ or those who favour double denim, I am not in their ranks, just in case it read like that.

That said, it does seem the music references struck a chord, so I am sticking with that theme again here. The evolution of a brand, business, or person is often central to finding success. Think of how Joy Division became New Order, shifting direction and sound, or how Madonna, U2 and the Bee Gees adapted across the decades.

Perhaps, therefore, now is the time for firms in our market to take inspiration from those musical behemoths who were able to see the shifting nature of tides and times, often before they actually hit the mainstream, and evolved into something the market wanted, before the market knew what it wanted.

That feels increasingly important for an area such as artificial intelligence (AI), which is clearly becoming much more a part of everyday life.

Imagine, for example, a client who uses an AI agent to monitor their mortgage, protection policies, and savings in real time. It scans the market, flags opportunities, and prompts action before they even think of calling their broker.

Within 3-5 years, this may not be hypothetical. AI agents that can plan, remember, and carry out multi-step financial tasks are already emerging. The question is not if they will reshape distribution, but how quickly, and whether brokers are ready.

The threat is real
Comparison sites and some lenders have spent years testing broker relevance. Most firms have held their ground by proving the value of whole-of-market advice and relationships. AI disruption may be different. It goes after the advisory relationship itself, not just product access.

Large language models (LLMs) are more likely than search engines to highlight digital-first lenders and direct platforms when answering questions such as ‘what is the best mortgage rate?’ or ‘what is the cheapest life insurance?’.

There are, however, factors that could slow this shift. Regulation means any AI firm arranging mortgages or switching protection policies must meet Financial Conduct Authority (FCA) and its Consumer Duty rules, for example, which gives regulated brokers an edge.

Trust built through real-life events, such as bereavement, divorce, or financial difficulty, cannot be replaced by data alone. Cost is another barrier, as clients may not pay for premium AI tools if advice is available at little or no cost. There is also the simple issue of trust in AI for major financial decisions, especially when we know it can get its output very wrong.

Being visible to AI
Whatever strategy a firm chooses, one step makes sense now: ensuring your business can be found when a client’s AI agent goes looking. This is often called generative engine optimisation (GEO).

49% of consumers now use AI-based searching, 53% use it to guide buying decisions, and firms report up to six times web traffic growth after investing in GEO.

In simple terms, this means creating clear, useful content that answers client questions. It means building a strong presence through reviews, media coverage, and trade press exposure. It also means making sure your website is fast, easy to read by machines, and consistent in how it explains what you do.

A path forward
Beyond visibility, brokers face a choice. Some may take a wait-and-see approach, expecting the pace of change to slow things down. That may be fair, but it also carries risk if the market moves faster than expected.

Others may adapt by preparing for an AI-driven channel, building systems that allow machine-led journeys and competing on speed and range. A smaller group may look to compete more directly by creating their own AI-led marketplace that clients turn to first.

There is a strong case for this last option. Research shows 62% of consumers trust their adviser most to deliver AI-led financial services, compared to just 19% who trust large technology firms. At the same time, 57% say they would consider using a third-party AI agent if their adviser does not offer one. That gap highlights both risk and opportunity.

Brokers who build their own AI layer, one that flags remortgage opportunities, spots protection gaps, and responds to life changes, can create a model that is hard for comparison sites or direct lenders to match.

The bottom line
At Paradigm, we have worked with the Yardstick agency to produce an LLM scorecard to help brokers assess how ready they are for this shift. It is designed to show where firms are well-placed and where support may be needed, and can be accessed here: https://phil-wcv7sudg.scoreapp.com/

AI replacing brokers is not a given, but could certainly impact on their proposition. Our most successful musical artists of the last 60-70 years have been good at understanding the shifting zeitgeist, and how to surf it, before it washed them away, making them irrelevant in the process. Firms should take inspiration from that. In essence, be a Bowie, not a Def Leppard.

The good news is that the window to prepare is open now. Those who invest early in their AI capability, their visibility, and how they engage with clients will be better placed to remain at the centre of their clients’ financial decisions.