A growing majority of bank advisors are preparing to integrate artificial intelligence into their practices, according to new research from Cerulli Associates.
While fewer than half of bank advisors currently use AI, the report projects that more than three-quarters will do so by 2027, signaling a significant shift in the sector’s approach to technology.
The newest research from Cerulli sheds fresh light on how AI adoption is accelerating among both advisors and home-office executives at banks, with use cases ranging from data review to direct involvement in portfolio construction and asset allocation. Although widespread adoption has yet to materialize, leading banks are already leveraging AI to deliver more personalized experiences for advisors and their clients.
Currently, 42% of bank advisors report using AI capabilities in their practice, though that figure is expected to rise to 77% within two years. Private banks report even higher adoption rates, with 56% already using AI tools and 80% anticipating integration by 2027. The range of AI applications includes text-based large language models, real-time investment data analysis, and tools for making buy and sell recommendations.
According to Cerulli, bank advisors are also using AI for portfolio construction, risk management, and optimization.
Headlines over the past several years have touted some of the largest Wall Street banks, most notably JPMorgan, as early leaders in AI adoption. Still, a June report from F2 Strategy suggests RIAs are slightly ahead in AI use, with RIAs reportedly four times more likely to use AI than banks and trust companies.
New data from LPL this week found more than three-quarters of its affiliated advisors are already leveraging or planning to use AI tools to boost capacity in their businesses this year, including 54% who cited tech system upgrades such as AI and automation tools.
“Advisors may be able to leverage AI-enabled tools to further customize client accounts, meeting needs and goals, risk tolerances, and liquidity requirements, as well as optimizing tax outcomes,” said Matt Zampariolo, research analyst at Cerulli.
He added that, when properly managed, using machine learning for analysis can allow advisors to spend more time with clients and focus on planning and relationship-building.
Despite the momentum, banks still face notable obstacles to broader technology adoption. High costs remain the most significant barrier, with 55% of executives citing expense as the primary reason for holding back on new technology.
Other concerns include limited advisor experience with advanced tools and data security risks. Smaller community and regional banks, in particular, struggle to match the technology investments of larger institutions.
“Smaller community and regional banks generally lack the size of the private banks and larger superregionals, making large investments in enterprise-level advisor-facing and other technologies a significant challenge,” Zampariolo said.
According to F2, smaller RIAs are able to access AI through relationships with external vendors.
Cerulli’s research also points to broader trends in the bank wealth management channel. The sector grew 14% in 2024, led by private banks, which saw asset growth of 16.5% and added more than $585 billion in assets under management. Private bank advisors are among the most productive, managing more than $418 million in client assets on average.
Mirroring other studies in the broader wealth space, technology is increasingly a factor in bank advisor satisfaction and recruitment. More than 80% of private bank and trust advisors surveyed said their firm’s technology stack is at least somewhat important when considering whether to stay with their current employer or move elsewhere.
For end investors, digital capabilities are also a growing priority, especially among those under 50. While just 39% of all surveyed investors are comfortable with AI in their financial provider relationship, that figure jumps to 53% for younger investors.
Cerulli’s report suggests that early adopters of AI could be well positioned for future growth. The firm encourages bank practices to evaluate both current and potential third-party AI integrations, with an eye toward enhancing advisor productivity and improving client outcomes.
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