The Great Wealth Transfer Meets the AI Age: What It Means for Advisors 

Demographics, economics, and technology are converging in ways that will reshape the advisor-client relationship over the next decade—and the data carries sharp implications for registered investment advisors, platforms, and asset managers alike. 

Millennials now account for 57% of RIA clients, overtaking Gen X at 37%. On the supply side, 74% of today’s advisors have less than 10 years in the profession, underscoring how a younger, digitally native cohort is becoming the face of independent advice, according to a survey by financial advisory firm Betterment Advisor Solutions, which captures the contours of a wealth management industry in flux. 

This is the front edge of the Great Wealth Transfer: trillions flowing from Baby Boomers to Millennials and Gen Z, who want a streamlined, digital-first experience, less handholding, and greater transparency. Advisors serving this base will need to differentiate not by hours spent, but by seamless, tech-enabled outcomes. 

The AI Paradox 

The most striking signal is the AI paradox. Most advisors—53%—already use AI tools, more than rely on social media, according to Betterment. Gen Z and Millennials lean on AI to streamline operations and model risk, while older advisors deploy it for client engagement and communication.  

“Over time, we expect to see these approaches blend. Younger advisors will begin utilizing AI to improve client engagement as they grow their practices, and we will see older advisors begin to adopt AI-driven tools to generate practice efficiencies,” Alison Considine, head of strategy & business development, Betterment Advisor Solutions, told Connect Money. “The result will be a more holistic use of AI across the industry, combining productivity gains with stronger client experiences.” 

Macroeconomics Still Matter 

While the economy is top of mind, perspective is split as 85% of advisors say they’re optimistic about the economy’s impact on their business, yet nearly 90% report making portfolio adjustments tied to tariffs. Gen X and Baby Boomer advisors show sharper sensitivity to market volatility (51%), inflation (48%), and interest rate shifts, while Gen Z (41%) and Millennial RIAs (38%) are less focused on macro risks.  

For investors, this translates into portfolio bifurcation: defensive income and hedging strategies for older cohorts, growth-tilted, tax-efficient plays for younger ones. Asset managers will need to tailor distribution accordingly. 

Considine addressed whether this is a blind spot, or if it reflects a new way of thinking about risk. “It’s not a blind spot so much as a demonstration of how older and younger advisors have different investment time horizons as well as lived experiences,” Considine said. “Both of those factors influence the advice they give clients, and the level of risk they perceive when they consider macroeconomic and geopolitical events.” 

Double-Edged Sword of Generative AI 

Yet 65% of all advisors worry clients are turning to generative AI for advice, underscoring the tension: AI is both a competitive threat and an efficiency enabler. The firms that win will be those that integrate AI into hybrid advisory models, where algorithms handle data-heavy tasks and advisors provide human context and trust. 

“Client expectations are changing fast with ongoing tech innovations,” added Considine. “AI is no longer optional—it’s central to efficiency, communication, and trust. Advisors shouldn’t see generative AI as competition, but as a complement to their services. They have an opportunity to leverage AI to deliver more timely, personalized insights while reinforcing the value of human judgment, relationships, and long-term planning—attributes that no algorithm can replace.” 

Technology, more broadly, has become the decisive battlefield. 55% of advisors rank technology as the top factor when selecting custodians, ahead of fees and reputation, the survey revealed. RIAs operating with six or more integrated tools are far more likely to serve $1 million to $5 million accounts, a clear sign that tech scale translates into client scale. Custodians, fintechs, and TAMPs that can deliver all-in-one, AI-enabled platforms are positioned to capture outsized share, while smaller RIAs without robust tech budgets may face consolidation pressure. 

The Handoff 

The generational handoff is no longer theoretical. The winners will be those who embrace technology early, harness AI as a complement (not competitor), and align portfolios with the digital-first expectations of Millennial and Gen Z clients. The losers will be firms clinging to legacy models of advice in a world where clients expect institutional-grade insights delivered at app-level convenience. 

“The numbers speak for themselves. AI is no longer experimental; it’s a proven tool embedded in advisory workflows. The most compelling case is that it saves time, deepens client engagement, and meets the expectations of a digital-first generation of investors. Those who don’t adapt risk falling behind both peers and clients,” said Considine.     

The survey captured insights from 500 independent RIAs nationwide, each managing between $10 million and $250 million in assets.