RIAs Embrace AI as a Growth Catalyst
Independent registered investment advisors (RIAs) are increasingly embracing artificial intelligence (AI) as a strategic advantage rather than a disruptive threat, according to the newly released 2025 Interactive Brokers Advisor Insights Survey. The report reveals that a growing number of advisors see AI—particularly generative AI—as a transformative tool that will reshape the advisory business by enhancing operational efficiency and elevating client service.
“Advisors want more time for relationship-building. When AI takes on routine tasks, it frees them up to do just that,” Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers, told Connect Money. “Our research shows advisors are open to AI when it aligns with their goals. The key is to offer technology that is intuitive, reliable, and clearly enhances the client experience.”
Key findings show that 62% of advisors believe generative AI can significantly improve their efficiency, while 51% say it can help them provide more informed investment advice.
“At Interactive Brokers, we are already seeing registered investment advisors benefit from AI-enabled research and reporting,” added Sanders. “Our Commentary Generator is a generative AI tool that helps advisors deliver timely, customized portfolio insights by analyzing portfolio performance, market movements, and relevant news. We believe we are only at the beginning of realizing AI’s full potential in this space.”
Nearly half (48%) agree that AI will fundamentally change the role of the financial advisor within five years, pointing to a shift toward hybrid models where digital tools and human expertise are more tightly integrated.
“We expect advisors to become both more strategic and more tech-savvy as technology continues to evolve. For some, greater efficiency will mean more time to spend with clients. Others may expand their client base to include individuals and families with lower asset thresholds, as technology reduces operating costs and makes scaled service delivery more feasible,” continued Sanders.
Operational Pain Points, Technology Gaps Remain
Despite their enthusiasm for AI, advisors continue to struggle with operational inefficiencies. The survey highlights back-office administration and record-keeping as the top challenges holding firms back, followed closely by compliance management. Many advisors say they need smarter, integrated technology to reduce the time spent on manual tasks, enabling them to focus on deeper client engagement and strategic planning.
Top concerns include data privacy, lack of AI and automation in workflows, and disjointed tech stacks. These friction points reveal a demand for end-to-end digital ecosystems that unify CRM systems, portfolio management, compliance, and communications tools into one seamless, intuitive platform.
Advisor Preferences and Growth Expectations
When it comes to choosing custodians, advisors emphasize cost, the quality of trading platforms, and access to diverse investment products. These preferences suggest a growing need for infrastructure that is both cost-effective and capable of supporting rapid innovation and scale.
“For RIAs with global clients, the ability to easily and cost-effectively trade international equities is essential. Most custodians make this difficult,” said Sanders. “Advisors should look for custodians that offer seamless cross-border capabilities, transparent pricing, and tools that are included at no extra cost. In addition to evaluating technology, advisors should consider access, flexibility, and alignment with their long-term growth strategy.”
Looking ahead, the outlook remains broadly positive: 61% of advisors expect to grow their businesses in 2025, fueled by the expanding role of AI, favorable market conditions, and rising client demand for personalized, tech-forward solutions.
Market Implications and Strategic Takeaways
The results signal a broader transformation within the RIA space. As AI matures, its role in portfolio construction, client servicing, and operational management is expected to grow. Forward-thinking firms that invest in automation, advanced analytics, and robust cybersecurity will have a distinct competitive advantage in a market that is increasingly defined by digital readiness and client-centric customization.
For technology vendors and custodians, the survey underscores a clear imperative: develop solutions that not only integrate seamlessly across advisor workflows but also deliver measurable value in terms of time savings, regulatory ease, and enhanced client outcomes. With the rise of generative AI, expect next-gen platforms to prioritize personalization, predictive modeling, and real-time compliance as table stakes in the advisor tech stack of the future.