TL;DR
UK wealth managers and price comparison sites suffered sharp share price declines after new AI tools threatened to disrupt their business models. St James’s Place fell 13%, AJ Bell dropped 8%, and MoneySuperMarket-owner Mony Group hit a 13-year low after AI-powered alternatives emerged for financial advice and insurance comparison.
A widening sell-off
The trigger was US-based fintech Altruist Corp launching a tool that helps financial advisers personalise tax strategies by analysing pay stubs, account statements, and other documents “within minutes.” Quilter fell over 5%, and the ripple spread to European markets, with Swiss wealth manager Julius Baer down 3% and UBS dropping 2.8%.
Separately, Insurify launched a service allowing users to compare car insurance quotes directly through ChatGPT, while Spanish insurer Tuio began providing home insurance quotes to ChatGPT users. This rattled UK comparison sites: Mony Group fell nearly 14% across two days, and Go.Compare owner Future dropped 7.6%.
“The market is looking for the next AI loser,” said Emmanuel Cau, head of European equities strategy at Barclays. He described a “sell first, see later” attitude from investors.
Industry response
St James’s Place chair Paul Manduca called the declines “surprising and almost certainly an overreaction,” arguing that “face-to-face advice is in high demand in a fast-changing world.” Analyst Rae Maile of Panmure Liberum questioned whether individuals with complex financial planning needs would “trust all of that to a computer to solve.”
Quilter CEO Steven Levin pointed out that the “vast majority” of the company’s revenues come from platform administration and asset management fees rather than adviser charges.
Looking forward
The sell-off echoes similar pressure that hit software, data, and legal companies in recent weeks following AI tool launches from Anthropic and others. Insurance and wealth management are the latest sectors where investors are pricing in potential AI disruption — even if the actual competitive threat remains uncertain.