With an estimated $124 trillion set to change hands in the coming decades, a growing share of younger investors are turning away from traditional advisory relationships and instead relying on platforms like TikTok and AI-driven tools.
But according to James Papadopoulos, Head of Americas at Fitch Learning, this shift is less about rejecting advice and more about how that advice is delivered.
“Younger investors are turning to TikTok and AI because those platforms feel accessible, immediate, and non-judgmental, he told InvestmentNews. “Advisors often enter the picture later, speaking in complex language or leading with products, which can feel intimidating. The opportunity for firms is to show up earlier and differently – meeting younger investors where they are, before habits and trust are formed elsewhere.”
Misconceptions around the role of financial advisors continue to widen that gap. Many Gen Z and millennial investors assume advisors are more focused on selling than advising.
“One of the biggest misconceptions is that advisors are primarily sales-driven rather than advice-driven,” Papadopoulos said. “Many younger investors assume advisors aren’t interested until there’s significant wealth on the table, or that advice won’t be tailored to their specific situation.”
He added that this perception is often shaped more by communication failures than by intent.
“That perception gap is often reinforced by poor communication, not intent,” Papadopoulos said. “Closing it requires advisors to demonstrate transparency, curiosity, and a genuine willingness to educate – not just transact.”
At the same time, the rapid rise of AI tools is reshaping how younger investors gather financial information, even as it introduces new risks. Nearly 80% of younger investors are now using AI in some capacity for financial advice, but many are making poor decisions.
“AI is very good at providing information, but it struggles with context, nuance, and accountability,” Papadopoulos said. “It can’t fully understand an individual’s risk tolerance, life goals, or emotional responses to volatility. “Advisors shouldn’t position themselves against AI – they should position themselves around it. The most effective advisors use AI as a tool, while owning the role of trusted guide who helps clients interpret information and make sound long-term decisions.”
Communication remains one of the biggest barriers to connecting with younger clients. Papadopoulos said advisors frequently make the mistake of overcomplicating their message.
“The most common mistake is overcomplicating conversations,” he said. “Advisors often rely on jargon, long explanations, or one-time meetings instead of creating ongoing, two-way dialogue.”
He also challenged the assumption that younger investors are looking for shortcuts.
“Another issue is assuming younger clients want shortcuts, when in reality they want clarity and involvement,” Papadopoulos said. “Advisors who slow down, listen more, and focus on outcomes rather than products tend to build stronger relationships much faster.”
Competing with the simplicity and reach of social media doesn’t mean advisors need to match its volume, he added. Instead, the focus should be on delivering deeper, more personalized value.
“Advisors don’t need to compete on volume – they need to compete on value,” Papadopoulos said. “Social media is great at sparking interest, but advisors add value by connecting the dots and personalizing guidance.”
That requires a shift in how information is delivered and reinforced.
“That means breaking information into digestible pieces, using plain language, and maintaining regular touchpoints,” he said. “The goal isn’t to oversimplify decisions, but to make the process feel approachable and ongoing.”
Timing is also critical. Firms that wait until wealth has already been transferred risk missing the opportunity to build lasting relationships with the next generation.
“Advisors need to engage before assets arrive,” Papadopoulos said. “That can mean offering educational conversations, supporting family discussions during generational planning, or simply being visible as a resource rather than a salesperson.”
He emphasized that early engagement is key to building trust.
“Firms that succeed treat younger investors as future partners, not future accounts,” Papadopoulos said. “Early engagement builds familiarity and trust – both of which are very hard to retrofit later.”
As the industry evolves, Papadopoulos believes the skill set required for advisors will need to expand beyond technical expertise.
“Technical expertise will always matter, but it’s no longer enough,” he said. “Advisors need stronger skills in communication, behavioral finance, digital fluency, and relationship building across generations.”
Training, he added, must focus more on real-world interactions.
“At Fitch Learning, we see the greatest impact when firms invest in training that helps advisors handle real conversations – managing push back, explaining value clearly, and building confidence on both sides of the table,” Papadopoulos said.
Ultimately, the role of the advisor is being redefined.
“The future advisor is part expert, part coach, and part translator,” he said.
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