Financial Advisors Increasingly Rely on Generative AI, Study Finds

A significant majority of financial advisors – 85 percent – now view generative AI as a benefit to their practice, a substantial increase from 64 percent earlier this year, according to a new study from Adviser360°.

The survey revealed that 76 percent of advisors are already experiencing tangible benefits from utilizing Gen AI-enabled tools. While some applications involve automating portfolio aspects, many advisors are leveraging AI to improve efficiency and streamline workflows, allowing them to dedicate more time to client relationships. “I do not see it replacing advisors – there are nuances to planning that are found only through face-to-face interaction,” said Don Grant, a certified financial planner at Sabre Wealth, adding that “AI can be a time-saving tool for advisors – freeing up more time for advisors to spend with clients, rather than the administration of client accounts.”

Advisors are employing AI in diverse ways, from accelerating research during client meetings – with a caveat for verification – to assisting with administrative tasks and even drafting communications. Brenton Harrison, founder and CFP at New Money, New Problems, noted that AI “can speed up the time it takes to research questions that come up in client meetings about market movements, tax implications and general planning strategies, though I always double check sources.” Others are using AI to redact emails, prepare for meetings, and analyze investment data. For those seeking a financial advisor, resources like the National Association of Personal Financial Advisors can be helpful.

Despite the growing adoption, experts emphasize that AI serves as a complement to, not a replacement for, human financial advice. Cristian Mundy, CFP and wealth management director at Life Line Wealth Management, explained that AI excels at “efficiency and insight,” but a CFP professional is crucial for “interpreting that information responsibly, through a fiduciary lens.” This shift towards AI integration comes as the financial industry faces increasing pressure to lower costs and improve service delivery to a wider range of clients.

Officials indicated that continued development and responsible implementation of AI tools will be key to maximizing their benefits within the financial planning sector.