Artificial intelligence tools are prevalent in many aspects of our lives and our work, regardless of industry. When applying them to relationship-based businesses, like financial services and wealth management, however, the value is rooted in how they support everyday operations and client service. When personal connection is the value of the business, nothing can replace the advice of a professional who understands the individual clients and has cultivated their trust over years.
A new AI-focused advisor survey from FP Transitions earlier this year found that 90% of 97 respondents have implemented at least one AI tool in their business. And 65% of those advisors are utilizing more than one to support various areas of the firm.
While other industries seem to be leveraging AI to supplant some of the core work of those professions, financial advisory professionals are, for the most part, using AI to help support and enhance the work that defines their profession rather than replace it.
The majority of survey respondents report using AI tools to support client service and advice (53%), operations and back office (51%), marketing (48%), and client consultation (47%). AI is primarily being used to take on tasks like notetaking, document summaries, and drafting emails to alleviate some of the day-to-day busy work that comes along with financial planning, portfolio management, and connecting with clients.
Almost three-fourths of respondents (71%) report that the use of AI tools allows them to spend less time on busy work and more time with clients. 42% said that AI reduces time spent on research and analysis, creating more time for them to develop insights and take action supported by the validated AI output.
As a jumpstart for client and marketing communications, 69% have seen better meeting outcomes with AI notetakers and 41% report improved client communications with the help of AI for initial drafts, the primary tools being ChatGPT, Microsoft Copilot, Google Gemini, and Claude.
Using AI in these ways is creating operational efficiencies that open up time for advisors to offer better or expanded services to existing clients as well as create capacity for taking on new clients. All of which adds up to more profitability and value for the business.
A poll conducted along with a recent webinar featuring experts from FP Transitions and Woodgate Financial–“AI for Advisors”–echoed these top uses for AI in the financial services industry. The conversation centered on the value of AI when used to support everyday tasks while emphasizing that AI tools cannot replace–or even faithfully replicate–the level of advice, planning, and connection that advisors offer their clients.
So far, clients aren’t asking how advisors are using AI tools in the business, according to 65% of survey participants. However, having a plan to communicate with clients about AI tools will quickly become important. The “AI for Advisors eBook” from FP Transitions explores the importance of a thoughtful communication strategy around AI and how these tools can support the overall client experience. Not only will clients seek transparency into how advisor usage of AI tools benefits the client experience, but there will be inevitable conversations and clarification needed when clients start dabbling in AI to look up financial advice before seeking professional insight and validation.
The overarching understanding is that AI tools are most effective when paired with human experience and cognition. Sophisticated comprehension and intuition are necessary to validate summaries, contextualize meeting notes, polish and personalize client communications, and integrate information into other technological tools like CRMs.
The presence and impact of AI is a widely accepted inevitability, with 97% of survey respondents near unanimously acknowledging that AI will have significant, transformative, and beneficial impact on the industry over the next several years. And still, advisors seem to understand that AI is a tool to support their own valuable knowledge and experience at the core of the work. At the end of the day, service and planning need to come from someone who knows the client and their priorities.
AI tools support workflow, research, and communication by alleviating the day-to-day busy work. That output is most effective when paired with an advisor’s experience and knowledge. Further optimizing impact and managing potential disruption comes with intentional and methodical implementation with thorough tech evaluation and full workflow integration, focusing on one new tool at a time.
Like any new technology, advisors who pay attention to what’s possible and intentionally leverage these tools will find themselves more competitive in an evolving industry and able to access the capacity and profitability it offers. The greatest value of AI lies in a full understanding of the business, knowing which areas need the most support, and where the technology has the most impact.
Survey respondents, webinar attendees, and industry experts all agree that, despite its relative newness, implementing some degree of AI technology into the business is inevitable–and ultimately beneficial. However, the question remains: how are these tools being used and how will they impact the quality of client service, wealth management, and financial advice going forward? And, the answer is, only time will tell.
