as the chief pilot felt they detracted from situational awareness
Wow! There's a Chiefy who obviously does not understand what situational awareness is. Actually flying an aircraft is really quite a complex task for the brain to deal with (all give yourself a pat on the back for being clever chaps) and flying whilst using instruments and bouncing around in cloud is even harder. Just because you are steering doesn't mean you are situationally aware, in fact it probably means that you are FAR LESS aware than your monitoring crewmember.
Autopilots can be the biggest help or the biggest hinderence in the cockpit depending on the users understanding of the system (The "What's It Doing Now?" Phenomenon) and the capabilities of the system.
It is not a 'get me out of a sticky situation' tool. An autopilot does not allow you to fly beyond your capabilities it just allows you to use your time more effectively.
I have used very many different autopilots and therefore consider myself reasonably experienced on this matter:
More golden rules,
1. Seek Training
2. Understand the system
3. Treat 'George' as your second (or third) crewmember
4. If it does something that you are not expecting or do not understand TAKE OVER
5. Keep current with system use and integration
If anybody wants any training or advice on the subject I am happy to be contacted by my email
PS - GRP, I like you decision better than the owner's. The owner is suggesting that whilst he may not be capable of flying in cloud the AP is. That is a potential fatal reversal of priorities.