AI is continuing its inexorable rise in the wealth management industry, but most advisory firms are still in the early stages of implementing the technology, according to the latest research from Vanguard.
The national survey of financial advisors found that, while AI adoption is widespread, advisors are mainly using the technology to support administrative tasks, such as drafting emails, which was cited by 38% of respondents. Some 35% of advisors said they are using AI to conduct research, while 27% said they are using it to take meeting notes.
“Many financial advisors have only begun to scratch the surface of AI’s potential,” said Lauren Wilkinson, chief information officer, financial advisor services, at Vanguard, in a statement. “To fully realize the benefits of AI, firms will need to evolve from using the technology to assist with tasks to using it to automate them.”
“Doing so can unlock more time for higher value work,” she added.
However, financial advisory firms cite a number of hurdles to broader adoption and automation of AI. Compliance and home office hesitance were cited as the leading barriers, by 37% of respondents. A lack of time to learn new capabilities was identified by 34% of advisors, while 31% highlighted limited proficiency as an issue. Some 22% of advisors voiced concern that AI could undercut their value as an obstacle to more extensive use.
The research, which was released Tuesday, was conducted in July 2026 through Escalent’s Cogent Beat Advisor survey and included a representative sample of 549 U.S. advisors.
Time, or the lack of it, was a key theme of the research. The survey found that 72% of advisors wish they had more time to devote to prospecting and deepening client relationships.
The study also found that, beyond AI, advisors are turning to portfolio management solutions, with model portfolios the leading option. Set against this backdrop, investment performance and track record was cited by 68% of respondents as the most important consideration, followed by cost, which was identified by 51% of advisors. However, even with the growing adoption of portfolio management tools, the study found that 32% of advisors manage portfolios entirely on their own.
“Model portfolios help advisors get one of the things they need most: time,” said Eve Cout, head of advisor solutions, financial advisor services at Vanguard, in the statement. She added that research suggests advisors can save more than 400 hours a year using model portfolios.
“The real value isn’t just the time saved; it’s what advisors do with it,” said Cout, who is among the many attendees at this week’s Future Proof Festival in Huntington Beach, Calif. “The best advisors use that capacity to spend more time with clients, deepen relationships, and grow their practice.”
AI’s impact is being felt across the wealth management industry. A recent HSBC survey said that more than half (57%) of affluent investors in the U.S. are harnessing the technology for tasks related to finance and investment, mostly for research and analysis.
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