Financial advisers need to focus on the client relationship in 2026 and not turn their backs on the pros of AI, says Hoxton Wealth's Chris Ball.
The CEO of the financial advisory firm says the momentum AI has gathered and will continue to gather within the financial planning sector reinforces the importance of the client relationship.
“It’s the one thing that AI can’t effectively replace, which is why developing and nurturing those relationships is going to set the best planners aside from the others,” he said.
Ball added the increasing role of AI in 2026 won't necessarily be disadvantageous.
“We are going to see significant impacts from AI this year,” he said. “Some will say it’s a bad thing, but, in my view, we should be embracing it. It's here and anyone would be stupid to ignore it. If you aren't embracing it, you’re in for a tough time."
He continued: “There are positives. The technology is getting better and cheaper. We know we can use AI to make us more efficient, whether that’s note takers feeding into CRM systems, creating suitability reports, compliance checking files, assisting with training and monitoring – the list goes on and on.
"You can even use the tech to personalise what you put out based on the exact requirements of each client and their portfolio with a personalised daily market update. But you also need to understand that the AI is only as good as the data that goes into it. So, everyone's realising now that they need to get their data in order so that it can be read and get these individual insights. The art of the possible is only becoming bigger and it’s exciting.”
In terms of geopolitics and its impact on financial planning Ball sees 2026 as an interesting year for the markets.
“In 2025 we had a dip early on in April following the Trump tariffs, but since then the markets have been on a relatively steady upward trajectory,” he said.
“Surely it has to end at some point, even though there are signs still suggesting it won’t. So, from an adviser's point of view, if we do see markets dip off this year, that will hit revenues, and, from a client's point of view, if they’re planning retirement or something else, as advisers we need to make sure we help them line that up.”
Ball added uncertainty remains rife in 2026.
“Brace yourself for unpredictability," he said. "That doesn’t necessarily mean be cautious. The problem with saying be cautious is suggesting that people are best off sitting in cash. But the opportunity cost of doing something like that can be massive.
"At the start of 2025 with all the tariffs, I could have just sat there and said don't do anything because we don't know what's going to happen. Obviously, hindsight is great but, at various points during the year, people have looked at their situations in that context and felt it had to bottom out, but it didn’t. It just kept going. That's the problem with being overly cautious."
Ball caveated that if clients have near-term cash requirements, they should be careful and park those funds so if there is volatility they will not have to sell at a loss. That is where the relationship with a financial adviser is important, he added.
“The Vanguard Adviser’s Alpha study suggests that an adviser will add 3% per annum or roughly that over the long term on your portfolio versus not having an adviser.
"Of that 1.5% is attributed to behavioural coaching during unpredictable times. This is where advisers add value because most people would have panicked. Trump's in and he's already done tariffs, who knows else what he's going to do, let's just sit in cash and hang it out. Well, you'd be 20% down year on year compared to if you had stayed invested in the markets.”