Australian mortgage brokers are rapidly embracing artificial intelligence to boost productivity and client service, but many are doing so without clear strategy or guardrails, according to new research from aggregator Connective.
Its AI Readiness in Australian Broking Report, based on a national survey of more than 300 mortgage, commercial, and asset finance brokers, found 86% believe AI will be essential or helpful to running their business over the next two years.
Half of brokers say AI will be critical to staying competitive, while 35% see potential efficiency gains across their operations.
Connective chief executive Glenn Lees (pictured) said the findings show the industry is at a turning point.
“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,” Lees said.
But he warned that “excitement is high” while “structure is not”, with many firms unclear how to deploy AI safely and consistently.
The report finds 37% of brokers use AI tools regularly and confidently, while around 14% have yet to adopt any AI at all.
Yet nearly half (49%) say their AI tools are largely disconnected from core systems such as their CRM, and one‑third (33%) have not integrated AI into their processes at all. That fragmentation limits deeper automation and makes consistent compliance harder to achieve.
Lees argues that “successful AI adoption depends on getting the fundamentals right”, including strategy, systems, and governance. The report highlights data quality and workflow design as key bottlenecks, with many brokers experimenting in isolation rather than embedding AI into end‑to‑end processes like document collection, file notes, and credit‑policy checks.
Despite widespread interest, the biggest gaps are in governance and responsible AI use.
Almost two‑thirds of brokers (65%) have no documented AI strategy, more than 40% lack any governance framework, and only 3% report having formal policies to ensure AI is used safely and in line with regulatory expectations.
“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,” Lees said.
He noted brokers must still meet obligations around consumer protection, disclosure, data handling, and professional judgement, regardless of the tools they use.
For mortgage advisers, the message is that AI can enhance service and efficiency, but only if it is integrated thoughtfully, backed by strong systems and supported by clear policies that protect client trust and borrowing capacity outcomes.
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