Trending
As highlighted by a decline of 4.63% by the Nasdaq-100 Index (NDX) for the week ending Feb. 26, artificial intelligence (AI) stocks have seen better days. Talk of bubbles bursting or rebounds will be reserved for another day because the issue at hand advisor adoption of AI. Simply put, it’s rapidly increasing.
Owing to advancements in generative AI, there’s widespread speculation that this technology will eventually usurp some high-paying white collar jobs. Add that to the increased intersection of technology and investing and it’s not surprising that some registered investment advisors are fretting that computers and robots will eventually steal their jobs. Good news: that’s not what’s happening. In fact, savvy advisors are harnessing generative AI to enhance their practices.
In fact, a case can be made that the intersection of AI and financial advice is a lead, follow or get out of the way proposition. Those quick to adopt AI could well flourish and deliver a superior client experience. Advisors that are slow on this front may be left wondering what could have been. Fortunately for the industry and, more importantly, clients, data confirm most advisors aren’t letting AI pass them by.
Advisors See Utility in AI
According to wealthtech provider Advisor360°, 76% of polled advisors said generative AI is already producing immediate benefits for their practices. Eighty-five percent said generative AI is an assist to their practices, a 25% increase from 2024.
“Advisor360°’s 2025 Connected Wealth Report surveyed 300 U.S.-based financial advisors at enterprise wealth management firms to better understand their views on technology and its impact on their work. The report reveals a clear shift in advisors’ attitudes toward AI and Gen AI compared to 12 months prior,” according to a press release.
Further cementing the notion that generative AI is providing benefit to advisors, the survey indicates 82% of practices have formalized AI policies, representing a massive increase from the 47% that said the same last year. Those policies may well include pledges to improve practice tech stacks – something advisors acknowledge they need to do.
“Changing attitudes toward AI aside, financial advisors are ambivalent about their tech stacks overall—65% of survey respondents indicated their technology needs improvement. Bad data and a lack of integrated tools continue to dominate the list of advisors’ top technology concerns for a third year running,” notes Advisor360.
More Encouraging AI Trends
There are positive signs regarding the intersection of AI and the advisory business. Notably, the Advisor360 survey points out that 9% of polled advisors aren’t using generative AI at all, meaning more than nine in 10 are.
In terms of the aforementioned job-taking fears advisors held by AI, those are abating in significant fashion. According to Advisor360, just 8% of advisors view AI as a threat to their jobs, down from 21% that said the same last year.
Bottom line: in the advisory business, AI is here to stay. Smart advisors realize as much. Don’t be part of the 9% that have yet to get on board with that line of thinking.
Related: The Real Value of Financial Advisors: It’s More Than Just Advice