A majority of independent RIAs are embracing artificial intelligence as a means to improve efficiency and client service, according to new survey data from Interactive Brokers.
The findings suggest that advisors are increasingly viewing AI as a practical ally rather than a disruptive force in their businesses.
Interactive Brokers’ 2025 Advisor Insights Survey found that sixty-two percent of financial advisors believe generative AI will help them operate more efficiently, while just over half expect it to enhance the investment advice they provide to clients.
Nearly half of respondents said they anticipate AI will transform the advisor role within five years.
“Advisors expect AI will be a tremendous ally in winning new business and engaging with clients, not a threat,” Steve Sanders, executive vice president of marketing and product development at Interactive Brokers, said in a statement unveiling the results. “The rush to AI adoption across the industry is setting the stage for a major evolution in advisor-client relationships in the near future.”
The most recent RIA benchmarking report from Schwab backs up these findings, noting that the most common uses of AI among RIAs include meeting preparation, notetaking for client meetings, summarizing post-meeting tasks, and drafting emails.
However, the adoption of AI is not without its challenges, particularly when it comes to compliance. According to the latest Investment Management Compliance Testing Survey, artificial intelligence has emerged as the leading compliance concern for RIAs this year. Fifty-seven percent of compliance officers identified AI and predictive analytics as the “hottest” topics, surpassing anti-money laundering and cybersecurity.
While 40% of firms in the IMCT survey have adopted AI tools internally, only 5% are using them to support client interactions. Another quarter are actively exploring AI adoption, but external use remains limited. The study also found that only a small fraction of firms have formal policies or governance structures in place for AI, and few mention AI in their marketing materials.
More broadly, Interactive Brokers' new research also revealed advisors are seeking technology solutions to address day-to-day challenges, particularly those related to back-office operations. Back-office administration and record-keeping were cited as the top obstacles, followed by compliance and regulatory matters.
Data privacy and the lack of AI and automation in workflows remain significant concerns, as does frustration over the limited integration of various tools and applications.
When asked about custodian selection, respondents to Interactive Brokers' survey identified cost, trading platform quality, and access to investment products as the most important deciding factors. Despite ongoing administrative challenges, most advisors remain optimistic about their business prospects, with 61% looking forward to growth in 2025.
Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.
Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.
It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.
Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.
Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
