Finding the middle ground between AI usage and the advice gap
Bob Hunt
15 July 2026Some commentators have understandably focused on the potential risks, while others have been quick to conclude advisers have little to worry about. As is often the case, the reality probably lies in between.
My colleague Richard Howes has already explored the changing role AI could play in the customer journey, but what struck me most about the Review was something altogether different. Hidden in plain sight amongst the debate about AI and financial services are some remarkable statistics which shine a light on the size of the advice gap and the opportunity that presents for advisers.
Whenever a report like this lands, however, there is a temptation to move to one of two extremes. We either become overly pessimistic and convince ourselves AI represents an existential threat to advice, or we become too relaxed and assume that because mortgage advice remains highly valued today, nothing much will change tomorrow. Again, I would look for something in between.
The advice gap remains enormous
One figure immediately stood out to me. Only around 9% of UK adults currently receive regulated financial advice. That statistic alone should change the tone of the conversation.
For years, our industry has debated adviser numbers, capacity and competition.
Meanwhile, millions of UK consumers it would seem continue to make important financial decisions without ever speaking to a regulated adviser. The FCA itself estimates that more than 20 million people are not receiving enough financial support, guidance or advice.
I prefer to see those figures as an opportunity rather than a concern. If more than nine out of ten adults are not receiving regulated advice today, then the challenge is surely not whether there will be enough customers for advisers in the future. The challenge is how we demonstrate the value of advice to people who may never have considered seeking it in the first place. That is a very different conversation.
Mortgage advice still occupies a unique position
Another statistic from the Review deserves far more attention than it has received. Despite all the headlines surrounding AI, mortgages are currently the financial product consumers are least likely to rely upon AI to help them with. According to the Review, only 18% of consumers would currently consider using AI in this area, compared with much higher levels for products such as debt advice. When you stop and think about it, that should not surprise us but it may change.
At the moment, consumers may well feel comfortable asking AI to explain financial terminology, compare information or answer straightforward questions. Borrowing several hundred thousand pounds to buy a home is (currently) something altogether different. That remains one of the biggest financial commitments most people will ever make, and it is reassuring consumers continue to recognise the value of speaking to someone with experience before making that decision.
That does not mean we should become complacent. Technology will improve, confidence in AI and the use of AI agents will grow and expectations will undoubtedly change over time. What it does mean is advisers currently have a valuable window in which to strengthen relationships, demonstrate their expertise and continue showing why regulated advice matters.
Looking beyond the transaction
One point that often gets lost in these discussions is that good advisers have never simply arranged mortgages. The best advisers build relationships that last for years. They support clients as first-time buyers, through home moves and remortgages, before helping them with protection, later life lending and other financial decisions as circumstances change.
Again, at present that long-term relationship is difficult to replicate through technology alone because it is built on trust, understanding and context. Perhaps that is why so many consumers still choose advice when the stakes are highest. It may not however remain like that in the future if the advice profession doesn’t capitalise on this.
The opportunity should give advisers confidence
There was another statistic in the Mills Review which I found equally striking. Around 900,000 adults in the UK still do not have a bank account. That is a reminder that financial inclusion remains a genuine issue. There are significant parts of society who are not fully engaged with mainstream financial services, let alone regulated advice.
Viewed in that context, AI may become part of the solution rather than simply part of the problem. If technology helps more consumers access information, understand their options and ultimately engage with advisers who can provide regulated recommendations where appropriate, then that is surely something the profession should welcome?
Rather than asking whether AI will replace advisers, perhaps we should be asking how it can help us reach people who currently receive no advice at all, or indeed are simply financially excluded. That feels like a far more positive way of looking at the future.
The Mills Review certainly raises important questions about how our market will evolve over the coming years, and we should continue to have those discussions.
At the same time, we should not overlook what the above statistics tell us about today’s market. They suggest there remains a vast advice gap waiting to be addressed and, for advisers willing to demonstrate their value, that should provide confidence rather than concern.
