St James’s Place (SJP), the UK’s largest wealth manager, held its annual conference at a luxury Hertfordshire hotel this week, focusing on business over celebration amid declining stock performance. Shares are down a fifth this year as investors worry about retaining customers and advisers in the age of AI. A Financial Conduct Authority survey found nearly a fifth of respondents already use AI for financial advice, increasing pressure on traditional models.

Advisers face temptation to leave due to pay changes and competition from firms like KKR-backed Söderberg. SJP’s network of about 5,000 advisers remains its key defence against AI and bank entrants. The departure of two major adviser firms in July caused an 8% share drop.

CEO Mark Fitz Patrick is overhauling culture and fees after years of criticism, a shift more popular with clients than long-standing advisers. Regulators block a return to opaque fees and luxury gifts. SJP is nearing the end of a transitional phase involving cost cuts and mis-selling reviews, allowing focus on growth.

Only 9% of UK adults currently receive regulated financial advice, but wealth transfer from baby boomers and complex pension rules will raise demand. Adjusted pre-tax profit is expected to dip 5% this year per Visible Alpha estimates, but rebound with over 20% annual growth from 2027 to 2029. AI may help advisers serve more clients, potentially funding future events even if not directly paid by SJP.