AI and automation are reshaping mortgage advice, streamlining workflows and sharpening decision-making. Here's what advisers need to know
AI is no longer a futuristic concept in financial services. It's already reshaping how mortgage advisers process applications, manage client workflows, and think about growth. But the pace of adoption varies widely across the industry. While some firms are experimenting cautiously, others are building their entire model around automation.
The key issue for advisers isn't whether AI will impact the profession — it already is. The real question is how advisers can use it without compromising the trust, judgement, and accountability that sit at the heart of advice.
Automation transforming the processing function
For many adviser businesses, the biggest gains are currently happening behind the scenes. Andre October, pictured above right, says his firm is using AI tools primarily for loan information processing.
"There are AI tools that exist to read and summarise bank statements, financial statements, loan approval letters and a whole range of functions within the loan processing role."
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Historically, this work required adviser assistants to manually review documents and then enter information into a CRM system. Now, some of those repetitive tasks are being replaced by AI-driven tools that can scan, extract, and summarise information in minutes.
October says this shift is already improving productivity. It also changes the nature of the work itself. Instead of spending hours on manual admin, teams can focus more on higher-level tasks and client support.
"This makes the team more productive and makes the role potentially more enjoyable, with attention now focussed on more creative tasks."
This mirrors broader sentiment emerging across the New Zealand market. NZ Adviser research has shown that two-thirds of local advisers are already using AI or plan to within the next 12 months, with efficiency gains in onboarding and workflow optimisation among the most commonly cited benefits.
AI-native models are raising borrower expectations
While many advisers are adopting AI in small pieces, Julian Fayad, founder and CEO of LoanOptions.ai, pictured above left, represents a more disruptive approach. His business is designed as an 'AI-native' asset finance brokerage.
"AI isn't an add-on or an afterthought. It's the infrastructure of our business," Fayad says, adding that the platform was built to solve a problem he experienced first-hand as an adviser.
"Back then, we were surrounded by stacks of paperwork and there was this frustration of repeatedly entering the same details across different systems."
His goal was to make applying for a loan as fast and seamless as shopping online — and that shift matters, because borrower expectations are changing rapidly. LoanOptions.ai has already partnered with Afterburner AI to deliver a streamlined end-to-end digital lending experience for advisers and aggregators across New Zealand and Australia, connecting application and onboarding technology with back-end automation tools in a single digital workflow.
AI can inform, but accountability stays human
AI's most sensitive role is in decision-making, and Fayad says that AI can reduce bias and increase transparency by showing borrowers only what they are genuinely eligible for.
"AI empowers the adviser to make an evidence-based recommendation rather than a subjective one," he says, noting that AILO predicts approval probabilities across a broad lender panel.
READ MORE: New Zealand advisers join global study on AI in financial planning
October says AI currently has no role in the advice decision itself in his business.
"At most, it may help summarise options once the recommendation has been made. But there is a growing trend of clients using AI to fact-check adviser recommendations, which can introduce challenges if the AI provides generic or inaccurate guidance."
The limits: compliance, privacy, and acceptance
Both October and Fayad acknowledge AI adoption isn't risk-free.
Fayad says early large language models failed compliance reviews due to 'hallucinations'. His team addressed this by building structured policy ingestion, rule validators, and explainable outputs that humans can audit.
October notes client privacy and acceptance as ongoing challenges. Even using an AI meeting note taker requires consent, and some clients do decline. He also notes ethical concerns about job displacement and believes advisers must prioritise client comfort and trust.
These concerns are widely shared across the profession. Financial Advice New Zealand has responded by launching a 12-week AI in Advice Certificate, giving advisers structured, practical training to integrate AI confidently while maintaining compliance and client trust. The programme, developed after extensive adviser feedback, spans 12 modules and 25 accredited CPD hours.
Adapt quickly or fall behind
Fayad believes AI will impact advisers who rely on manual admin, but empower those who embrace 'agentic AI'.
"In 3 to 5 years, an adviser won't be a person who fills out forms; they will be the pilot of a sophisticated AI engine," he says.
October believes AI will enhance small businesses and especially the assistant role, but could be a serious disruptor for larger firms. He also warns that change is accelerating fast — in 12 to 18 months, the industry could look very different.
The bottom line
General consensus is that AI won't replace mortgage advisers, but it will replace inefficient processes. Advisers who use AI well will be able to move faster, reduce errors, and spend more time delivering value where it counts — judgement, advocacy, and client trust.
Or as October puts it: "Keep your values and integrity at the forefront. Listen to your staff, listen to your clients and adopt the functions of AI that will safely benefit your business."
