AI will indeed change the wealth management business – the consensus is clear. It’s already starting to happen in ways large and small.
Nevertheless, financial advisors can breathe a sigh of relief because there will still be a need for human interaction no matter where this blossoming technology takes the industry. Yes, things will undoubtedly change due to AI and automation. But not everything.
And it starts with human empathy, according to Jason Hanavan, president & CFO of VestGen Wealth Partners. Algorithms can't replicate the generational trust advisors build with families.
“AI can surface data, but it can’t look a widow in the eye after her spouse passes and reassure her she’s going to be okay. That emotional connection is timeless and priceless,” Hanavan said.
Furthermore, Hanavan points out that AI cannot replace the entrepreneurial spirit.
“This industry was built by entrepreneurs. Advisors are business owners serving their communities. That spirit is alive in the next generation, too. At VestGen, we see it every day as we pair retiring advisors with young, tech-savvy successors who carry that same spark,” Hanavan said.
Meanwhile, David McIntosh, wealth manager with Coldstream Wealth Management, notes that advisors will continue to play a key role in understanding, interpreting, and articulating the data and planning work whether it’s prepared by AI or a colleague. When clients want to make changes both in preparation and in real time, advisors must bring technical competence and judgment.
“High-net-worth clients with complex lives rely on their advisor as a central point of contact. They want someone to coordinate moving parts, summarize information, and let them delegate so they can focus on what they enjoy most in life,” McIntosh said.
Along similar lines, A.J. Sohn, private wealth advisor with BridgePort Financial Solutions, believes the creation of an overall plan that accounts for both rational needs and emotional desires can’t be achieved through the application of technology.
“Advisors will still need to act as the quarterback for the client so they can make changes as the conditions on the field evolve. The humanity of these areas can’t be understated – this isn’t just about maximizing the number on the page, it’s about ensuring someone can live the life they want and that takes a human touch and socially intelligent coordination,” Sohn said.
There’s been a lot of hype about agentic AI displacing humans. But the general view among advisors is that agentic AI will complement, not replace, the human side of wealth management.
At VestGen, Hanavan sees younger advisors using automations to handle routine tasks, and field professionals readily adopting AI tools for client service tasks at scale.
“This openness and adaptability free our advisors to spend more time on empathy, strategy, and legacy conversations. Advisors who lean into AI will see their value multiply, not diminish,” Hanavan.
Elsewhere, Coldstream’s McIntosh feels AI may work for DIY investors or simpler situations, but when life becomes more complex and creative thinking is required, these tools will fall short.
“We already see clients sending AI-generated responses to us – but they still need help deciding the right path forward. Without the right prompts or questions, AI can easily push someone away from their actual goals,” McIntosh said.
And he does not expect AI to only pick winners, either.
“Some claim AI will predict global markets or eliminate portfolio risk. While tempting, those promises rarely deliver – especially during crises when truly unpredictable events occur,” McIntosh said.
In terms of areas that should be changed by AI but aren’t being focused upon today, McIntosh says AI could play a much larger role in conquering the back-end administrative work that clients don’t often see.
“Imagine it summarizing key details before each meeting – the last discussion, family milestones, and upcoming financial checkpoints. Or automatically creating tasks and reminders tied to life events, such as a child approaching college or a client turning 50 and qualifying for higher 401(k) contribution limits. Proactive nudges like this would shift service from reactive to proactive,” McIntosh said.
He also believes that more AI tools should focus on behavioral insights, not just numbers.
“Understanding how clients respond to market corrections, bonuses, or their kids growing up can be just as important as portfolio data. As the technical planning becomes more automated, AI should help advisors go deeper into what clients value, where they derive meaning, and how they make trade-offs,” McIntosh said.
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