Maintaining the “human touch” just one of the top reasons
A significant portion of mortgage brokers are holding back from adopting artificial intelligence (AI), with 40.5% stating they have no plans to integrate the technology into their operations, according to a recent study from financial product review platform Smart Money People.
The reluctance is driven largely by concerns that AI could replace human advisers and erode the personal relationships central to mortgage advice.
The survey found that worries about AI’s potential to supplant the human element are widespread. “Trust and tailored service are non-negotiables – and many brokers fear that AI could jeopardise that,” said Jake Sandford, head of data and analytics at Smart Money People.
“Given the importance of meeting FCA standards and the personal nature of mortgage advice, it’s hardly surprising that brokers remain cautious here.”
Despite the rapid advancement of AI across financial services, only 12.9% of brokers currently use AI tools in regulated advice. While nearly 28% intend to explore AI in the near future and 18.6% are already experimenting, the sector’s overall approach remains cautious, with a strong emphasis on maintaining the “human touch”.
The survey also revealed that some brokers view AI’s growing influence as a top risk for the mortgage market. Concerns extend beyond job security, with many citing the inability of AI to apply common sense, the risk of system errors, and the potential for algorithmic bias. More than half of respondents (56%) are worried about system errors affecting approvals, and 54.5% fear automation could eventually replace the broker’s job.
However, brokers do acknowledge AI’s potential in supporting administrative and compliance tasks. When asked about the likely impact of AI over the next three years, 38.4% said its main value lies in supporting advisers rather than replacing them. Only 11.9% believe AI could make brokers less relevant, suggesting that most see a continued need for human expertise.
AI’s role in lending decisions remains contentious, with 40% of brokers uncomfortable with AI involvement in mortgage approvals. Nearly 30% are open to AI working behind the scenes, while 24.7% are neutral.
The findings highlight a sector that values innovation but is determined to protect the personal service that defines mortgage advice. “Mortgage advice is, at its heart, a people business,” Sandford said. “It’s about trust, empathy, and personalised support, things no algorithm can fully replicate.
“If AI is to find its place in the mortgage industry, it won’t be by replacing the broker. It will be by empowering them, streamlining the background tasks, reducing admin burdens, and freeing up more time for the one thing clients value most: the human touch.”
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