The vast majority of brokers think AI will benefit their business in the next two years, but two-thirds do not have a clear strategy for using it, according to new research.
A new report from aggregation group Connective has found that mortgage and finance brokers are generally supportive of using artificial intelligence (AI) in their businesses, with 50 per cent believing AI will be essential for staying competitive over the next couple of years, while 36 per cent believe it will improve efficiency.
Connective’s AI Readiness in Australian Broking Report, which pulls on a survey of 300 Australian brokers across mortgage, commercial, and asset finance lending (both Connective brokers and non-member brokers), found that brokers are generally excited about using AI or open to embed AI into workflows.
It revealed that 37 per cent of brokers said they were using AI regularly and confidently, with the same proportion only “experimenting occasionally” with AI.
The biggest benefits of AI identified by brokers included automating routine tasks, speeding up loan inquiry responses, and improving operational processes.
According to the survey, the most widely used AI tools being adopted by brokers are large language models (LLMs). The most commonly used tool was found to be ChatGPT, followed by Gemini and Copilot. Other platforms that were being used included Llama, Claude, and Grok.
Connective found that most brokers were using free or basic plans, rather than premium user plans.
Just 14 per cent of respondents said they did not use AI tools at all.
Brokers lacking in AI guardrails
While the majority of brokers believed that AI is intrinsically important to the future success of their business, the report found that few brokerages had clearly identified strategies or processes for using technology responsibly and compliantly.
Nearly two-thirds (65 per cent) had no documented AI strategy, with 40 per cent having no governance of AI (covering oversight, ownership, and risk controls) at all.
Only one in 20 brokerages had assigned a responsible person to be their ‘AI champion’, while just 3 per cent had embedded AI tools into their workflows.
As such, Connective flagged that brokers may be using AI often without knowledge around the appropriate guardrails, increasing exposure to privacy and cyber risk, biased outcomes, and algorithmic discrimination that could result in reputational harm.
Speaking of the findings, Connective CEO Glenn Lees said the findings show the broking industry is approaching a critical moment in how it adopts emerging technology – but flagged that more guardrails needed to be put in place.
“AI is a powerful tool for brokers – it can boost productivity, support research, streamline document handling and improve client communications, helping brokers run their business more efficiently,” he said.
“Successful AI adoption depends on getting the fundamentals right. This requires a clear strategy, the right systems and infrastructure, governance frameworks and a culture that prioritises experimentation and safe use.
“With these foundations in place, AI becomes a genuinely useful and sustainable tool. It enhances brokers’ work by automating tasks and streamlining processes, allowing them to focus more on clients and deliver better outcomes while maintaining the compliance and trust that define the broker channel.”
Noting that compliance and governance around AI use remain underdeveloped, he added: ”Broking is a highly regulated industry and ASIC has made it clear that how AI is used is under increasing scrutiny, not just whether it’s used.
“Brokers must meet obligations around consumer protection, disclosure, data handling and professional judgement.
“We are providing our brokers with practical tools, including a Responsible Use of AI policy and AI guardrails, to support safe adoption and ensure governance, risk controls and responsible use are built in from day one.”
Connective has offered the following tips for brokers looking to build confidence, capability, and safe habits when using AI:
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Set aside a non-negotiable hour a week for AI learning.
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Implement AI safety and guardrails (aggregators typically offer AI adoption standards).
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Identify one to two business problems to solve with AI.
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When using appropriate AI tools, pay for premium versions for added security and privacy.
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Prioritise compliance by establishing a Responsible AI Policy and conducting accuracy checks.
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Stay informed on what other brokers are implementing in your aggregator network.
You can find out more about how brokers can optimise their business in the world of AI at the Better Business Summit 2026, run with the support of principal partner NAB.
The Better Business Summit has returned for March and April 2026, bringing a five-state roadshow designed to help brokers sharpen strategy, lift performance, and stay ahead as competition intensifies across residential, commercial, and specialist finance.
Running across Adelaide, Perth, Sydney, and Melbourne, the summit will feature a full-day agenda led by senior industry figures, elite performance leaders, and digital and AI specialists, with each event capped at 500 attendees.
Click here to book your tickets and don’t miss out!
For more information, including agenda and speakers, click here.
[Related: Speed over strategy: Why brokers risk missing AI’s bigger opportunity]
