{"id":77928,"date":"2025-08-12T20:00:09","date_gmt":"2025-08-12T20:00:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/77928\/"},"modified":"2025-08-12T20:00:09","modified_gmt":"2025-08-12T20:00:09","slug":"ai-to-take-over-the-personal-financial-advisors-job","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/77928\/","title":{"rendered":"AI to Take Over the Personal Financial Advisor\u2019s Job"},"content":{"rendered":"

Microsoft recently released a report<\/a> on the jobs most likely to be replaced by artificial intelligence, and personal financial advisors landed at No. 30 on the list of 40, with a high AI applicability score. Advisors were alongside other professions at risk of an AI takeover, including market research analysts, editors and public relations specialists.<\/p>\n

But advisors who spoke with WealthManagement.com don\u2019t see AI as a threat. Rather, they view it as an extension of the tech innovation that\u2019s been going on for decades; it can be used for certain tasks, such as proofreading and notetaking, to make them more efficient and create more capacity. However, as with other tech innovations, such as robo advisors, AI will not be able to replicate the human connection advisors have with their clients.<\/p>\n

\u201cI think the timeline for innovation is just going to accelerate because of this,\u201d said Kevin Hrdlicka, head of wealth at\u00a0Savant Wealth Management. \u201cTwenty years ago, there wasn\u2019t really even financial planning software. You did everything with Excel. Think of CRM workflows. Those are all things that have dramatically changed the roles for the people in the industry and financial advisors.\u201d<\/p>\n

Hrdlicka uses AI notetaking software as an example. Previously, his firm had a junior advisor who took notes at every meeting. Now, the notetaking technology handles that part so Savant can accelerate that advisor\u2019s training and development.<\/p>\n

Related:Key Considerations of AI in Asset and Wealth Management<\/a><\/p>\n

\u201cHopefully that will bear out as people can gain knowledge faster than they could have before because they don\u2019t have to be the scribe as part of their career,\u201d he said. \u201cWe\u2019re going to train on how to take good notes and follow up, but now there\u2019s technology. It\u2019s AI technology that will record and do a meeting follow-up, and it’ll drop tasks into the CRM and all that stuff. It\u2019s been really helpful for people in seeing that those are skills that weren\u2019t adding a ton of value, and I can focus on things that are more important to the end client.\u201d<\/p>\n

The Microsoft report analyzes 200,000 anonymized user\u2013AI conversations, sampled representatively from 9 months of Bing Copilot, Microsoft\u2019s AI chatbot, usage in the U.S. during 2024. The company measured how successfully different work activities are assisted or performed by AI.<\/p>\n

The report found that people commonly sought AI assistance for information gathering, writing and executing financial transactions. By itself, AI was performing tasks such as providing information and assistance, writing, teaching and advising.<\/p>\n

Related:AI and Ethics: A Double-Edged Sword for Wealth Management<\/a><\/p>\n

\u201cAnd to me, everything that [the report is] pointing to is, I think, accurate in the sense that being able to gather information quickly, model 10 different scenarios, those are things AI is going to help advisors with,\u201d Hrdlicka said. \u201cBut I think it’ll evolve how the human advisor works with end clients. It’s more of a continuation across all industries of just change and technology that will impact how we do things.\u201d\u00a0<\/p>\n

AI can help advisors lay a lot of the groundwork when advising a client on a certain life event. But the actual advice is going to be tailored to the individual client\u2019s goals and values, he said.<\/p>\n

\u201cIt can serve up strategies, it can bring ideas, but then once you actually have the goals that the client and the person has, I think that is going to be hard to replicate,\u201d he said. \u201cThe best financial advice still comes from someone who knows your story, not from a spreadsheet.\u201d<\/p>\n

Brandon Galici, founder and financial planner at Galici Financial in San Juan Capistrano, Calif., said it\u2019s not just the knowledge and information the financial advisor brings to the client relationship; it\u2019s how to apply it. AI might be able to come up with some softer side, behavioral finance-type questions. But he doesn\u2019t believe that will be enough to get people to take action.<\/p>\n

Related:The WealthStack Podcast: The Meeting Assistant Revolution with Parker Ence<\/a><\/p>\n

\u201c’Why is anyone ever going to pay an advisor an AUM fee? You could do robo advisor, and it’s so much cheaper and effective,\u2019 Excuse me,\u201d he said. \u201cBut that just hasn\u2019t happened. And even those big companies are having a tougher time trying to get people on their platform without as much human connection.\u201d<\/p>\n

To be sure, Galici uses AI in his practice, primarily as a proofreader for the content he produces for clients. It speeds up some of his proofreading and research processes so he can spend more time on what he calls \u201chigh-value tasks.\u201d<\/p>\n

\u201cThat\u2019s having those connections with clients, having conversations, sending emails back and forth where they feel seen, they feel heard, and they know that I\u2019m helping them plan for their future, and I\u2019m just constantly monitoring their situation.\u201d<\/p>\n

Chris Roy, a former senior client strategy at BNY Mellon Wealth Management, said human trust, connection, judgment, compliance and fiduciary guidelines will never be replaced by technology. But if firms use AI properly, it can \u201cturbo-boost\u201d advisors\u2019 revenue generation and productivity.<\/p>\n

\u201cThe firms that can develop secure proprietary AI models and ecosystems (which requires a huge investment) will see their advisors become far more productive and profitable,\u201d he said. \u201cMany big banks and wirehouses still operate on overnight old batch processing mainframes, which restrict their agility.\u201d<\/p>\n

A recent study by Northwestern Mutual found that most Americans trust advisors over AI on a range of financial planning strategies. For instance, 56% of Americans surveyed said they trust humans more to create a retirement plan, versus 13% who said they would trust AI more.<\/p>\n

\u201cFinancial planning isn\u2019t just about numbers on a spreadsheet\u2014it\u2019s an emotional discussion around a person\u2019s life goals,\u201d said\u00a0Jeff Sippel, chief strategy officer at Northwestern Mutual, in a statement. \u201cThese conversations are complex, delicate and deeply personal. Clients want to discuss their options with a trusted financial advisor who understands their needs and the trade-offs associated with these big financial decisions at a human level.”<\/p>\n

But the same study found that nearly half of Americans (47%) prefer to work with an advisor who understands and uses AI. The stat is even higher among younger investors, with 54% of Generation Z and millennials preferring to work with an advisor who uses the technology as part of their role.<\/p>\n

Melissa Reaktenwalt, founder and advisor with EViE Financial Group in Upper Marlboro, Md., said she uses AI for many tasks, including notetaking, asset management and risk assessment. But she believes the human aspect of financial planning is still essential.<\/p>\n

\u201cThere\u2019s a place for financial advisors from a human perspective, not just from the job perspective, but also for clients and what clients are looking for. So I’m not initially concerned more than any other takeover or shift that AI is going to bring, but I do think it’s worth financial advisors paying attention to, certainly because I think there are some technical aspects of the job that likely can be replaced and likely will be.\u201d<\/p>\n

She\u2019s implemented a therapy model in her financial planning practice, allowing people to discuss how they feel about money.<\/p>\n

\u201cIt\u2019s the most important part when people can talk through some of those things and have a partner in that and have the ability to also use not just a chatbot, but a human as a sounding board for some of those things and some of their ideas for wealth management or managing or organizing their finances,\u201d she said. \u00a0<\/p>\n

But she believes AI is part of a new wave of innovation that can be both exciting and scary.<\/p>\n

\u201cIf we just let the thing run by itself, we still have to be in charge of that; there still has to be a guardrail of some sort,\u201d she said. \u201cFor advisors, it\u2019s really helpful to just understand that these tools are really powerful. They can be significant game changers for a business and specifically for smaller independent firms. But good grief, there\u2019s still so much that we don\u2019t know, and there\u2019s a lot that still requires human direction and human guidance.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Microsoft recently released a report on the jobs most likely to be replaced by artificial intelligence, and personal…\n","protected":false},"author":2,"featured_media":77929,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,74],"class_list":["post-77928","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/77928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=77928"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/77928\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/77929"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=77928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=77928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=77928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}