AI and adviser shortages reshape financial advice markets in New Zealand and the UK

Experts in New Zealand warn that AI tools such as ChatGPT and Claude are being used for personal finance and investment queries, but their advice is often generic, biased and not tailored to local markets. Concerns highlighted include the accuracy of recommendations, the presence of advertising, data privacy when information is processed abroad, and the lack of legal recourse if AI‑generated advice proves faulty.

In the United Kingdom, a growing share of adults – including 2.6 million under‑30s – are turning to social media and AI for financial guidance as the traditional advice sector ages. Only a small fraction of advisers are under 25, and many senior advisers are nearing retirement. The shortage of young professionals, combined with the appeal of unregulated online sources, raises the risk of an “advice gap” that could limit access to reliable, regulated financial planning.

Both countries face a convergence of technological adoption and demographic shifts that may undermine the availability of qualified, accountable financial advice.