AI is the topic on everyone’s lips, disrupting just about every industry you can think of. Financial services is no exception. But when it comes to mortgages, are brokers embracing the AI wave or holding it at arm’s length?

At first glance, it looks like the mortgage sector is still warming up to AI’s potential. Despite the transformative impact it could have on everything from client interactions to administrative workflows, the industry appears to be cautiously curious – rather than boldly experimental.

We recently asked brokers how they feel about AI, how they’re using it, and whether it has a place in the client journey. The results reveal a sector that’s both intrigued and apprehensive.

Regulated advice? Not just yet

Only 12.9% of brokers say they’re currently using AI tools in regulated advice. Given the importance of meeting FCA standards and the personal nature of mortgage advice, it’s hardly surprising that brokers remain cautious here. Trust and tailored service are non-negotiables – and many brokers fear that AI could jeopardise that.

Still, the tide may be turning. Nearly 28% of brokers plan to explore AI soon, and 18.6% are already experimenting. While that’s far from an industry-wide embrace, it signals an openness to change, particularly as the mortgage landscape continues to evolve.

There’s no denying the mortgage sector has a reputation for being slow to adopt new technologies. And in some respects, the data backs that up. A significant 40.5% of brokers have no plans to adopt AI at all.

Concerns about AI replacing the human adviser were among the most commonly cited worries. One broker even named AI’s growing influence as the top risk facing the mortgage market in 2025. And they’re not alone in thinking this way. The idea that AI might erode the human touch isn’t just felt in mortgages, but across sectors.

Behind-the-scenes benefits

Interestingly, brokers do see promise in AI, just not where you might expect. When asked how they expect AI to influence mortgage advice over the next three years, many predicted a moderate impact, particularly in streamlining admin, paperwork, and compliance.

In fact, 38.4% said AI’s value lies in its ability to support brokers, not replace them. However, just 18.2% believe AI will significantly boost productivity when it comes to delivering advice, while 18.9% expect minimal impact overall. Only 11.9% think AI might make brokers less relevant, suggesting that the role of the adviser remains secure.

What about AI’s role in lending decisions? Here, the industry seems split. A notable 40% of brokers are uncomfortable with AI being involved in mortgage approvals or decisions in principle. Concerns include the inability of AI to apply common sense, and the risk of it producing questionable or incorrect outputs.

That said, nearly 30% of brokers are comfortable with AI playing a role behind the scenes in lending, and 24.7% feel neutral – again reinforcing the view that AI has a place, as long as it doesn’t cross certain lines.

Risks and roadblocks

When it comes to AI adoption, the risks are front of mind. Over 56% of brokers worry that system errors could impact approvals. And 54.5% fear increased automation could eventually phase out the broker altogether. Others highlight algorithmic bias, regulatory complexity, and a general lack of transparency in how AI makes decisions.

Tellingly, just 5.9% of brokers say they have no concerns at all.

A human-centric future

So, what does this tell us? While brokers recognise the value of AI, particularly in support roles, they’re not ready to hand over the keys just yet. And that makes sense. Mortgage advice is, at its heart, a people business. 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.

As we look to the future, the brokers who thrive will be those who balance innovation with intuition, using AI not as a substitute, but as a strength.

Jake Sandford is head of data and analytics at Smart Money People