Guest blog: A roundup of technological advancements in insolvency

09 December 2025

By Tom Proctor, business debt specialist at Solvent Liquidation

The face of the insolvency profession is changing as technological advances reshape the way insolvency practitioners operate, from the way they process data, communicate with clients to conduct investigatory work. Technology is supercharging efficiency behind the scenes and unlocking more opportunities as it advances. While the value of human oversight can never be discounted, the sector is witnessing increased digitalisation as technological standards reach new heights.

This year saw artificial intelligence use expand across the public and professional realm, integrating into most sectors, including insolvency. We round up the latest technological advancements in insolvency that are transforming the way insolvency professionals operate.

Technological developments in insolvency

The arrival of qualified artificial intelligence marks a new chapter for insolvency, as new capabilities mean new opportunities.

Artificial intelligence – From generative artificial intelligence (AI) to agentic AI, artificial intelligence serves a wealth of insolvency practitioner needs.

Generative AI generates information, from formal communications and paperwork to reports. Agentic AI homes in on key needs and provides tailored support through dedicated AI agents built to fulfil respective functions. From providing client support, conducting due diligence and preparing documents, to writing correspondence, summarising company records and reviewing claims.

Investing in new technology can reap financial and operational benefits, including higher productivity and greater efficiency on both internal and client-facing fronts. While highly intuitive, new technology must be assessed for potential threats to guarantee confidentiality and maintain the integrity of the insolvency profession. 

Digital assets – As more businesses are investing in digital assets, insolvency proceedings are increasing in complexity. From cryptocurrencies to non-fungible assets (NFTs), insolvency practitioners must possess the knowledge or contacts required to identify, recover and realise digital assets in insolvency.

In light of the notable changes to technology in recent years, the Insolvency Code of Ethics was updated in three core areas:

• Technology
• Professional behaviour
• Role and mindset 

The updated Code sets clear expectations and tightens the rules around technology to provide proper guidance in relation to the use of technology as we enter a new digital age.

Insolvency Code of Ethics gets an update

On 1 October 2025, the updated Insolvency Code of Ethics came into effect, revising the rules for insolvency practitioners. The updated Code addresses a changing professional environment undergoing modernisation through digitalisation. As technology rapidly advances to present a wealth of unique opportunities to the insolvency profession, the Code sets out clear guidelines for insolvency practitioners when using technology.

A summary of the updated Code in relation to technology includes: 

Professional behaviour and mindset - Professional judgement must not be compromised by undue influence of, or undue reliance on technology.  

Professional competence – An awareness and understanding of technology-related developments that are relevant to the professional activities undertaken by an insolvency practitioner must be maintained. Investing in personal development is vital to maintain the capabilities required to perform competently.

Confidentiality – Confidential information must be protected throughout the whole data lifecycle to preserve confidentiality. Confidential information now covers any information, data or other material in whatever form or medium (including written, electronic, visual or oral) that is not publicly available.

Complexity – Due care must be taken and professional judgement exercised when using technology to analyse complex data.

Security - Potential threats arising from using the technology must be assessed.

Conflicts - A careful assessment of whether the output from technology is reliable or fit for purpose must be undertaken.

The updated Code of Ethics sets out the obligations an insolvency practitioner is expected to meet in relation to technology, how they can identify threats, their significance and apply safeguards. 

The digitalisation of the insolvency profession

The face of the insolvency profession is rapidly changing as technology unhooks the brakes on modernisation, feeding the digitalisation of processes and fast tracking the integration of new technologies. Insolvency professionals must remain vigilant, fulfil their duty of care and act with integrity when using technology.

Tom is a business debt specialist at Solvent Liquidation, expertly guiding company directors seeking Members’ Voluntary Liquidation (MVL) services. Tom is a trusted adviser and often the first port of call for company directors seeking company liquidation support.