85% of FAs Give Generative AI a Thumbs Up: Survey
Financial advisors have continued to warm up to generative AI. A year ago, 64% of them saw it as a “help,” and now that’s risen to 85%, according to a survey conducted by wealthtech provider Advisor360°. That’s a big jump in confidence, and it’s backed by 76% saying they’re already reaping tangible perks from Gen AI tools, including predictive analytics and summarizing meeting notes.
Last year, 21% saw AI as a potential “threat” to their jobs, but that’s plummeted to just 8%. Meanwhile, only 9% say they’re not using Gen AI tools at all, which means 91% are in the game to some degree.
“From administrative assistance and prospecting to predictive analytics, advisors understand that Gen AI has the potential to transform their business in ways that simply did not exist a few years ago,” said Darren Tedesco, president of Advisor360°. “The rate of Gen AI adoption in the wealth management industry is unprecedented compared to other tech advances over the last several decades.”
Wealth management firms are clearly getting serious about AI, and fast. According to the research, 82% of advisors say their firms now have formal policies around generative AI, up from just 47% in 2024. However, only a handful of financial advisors (29%) are using generative AI to build personalized financial plans, making it the least common application.
“Advisors prefer to be hands-on when it comes to tasks that are core to client service,” said Tedesco. “For now, using Gen AI to create financial plans appears to be a bridge too far, in part because of compliance concerns.”
Meanwhile, advisors are lukewarm about their broader tech setups, with 65% saying it needs work, and for the third year in a row their concern about data and lack of tools top the list. Advisors are least satisfied with their firms’ current financial planning tools and digital onboarding capabilities.
Advisors cited a connection between advanced technology and their ability to attract new business. Over half (57%) of advisors say they’ve gotten new clients simply because a rival’s tech was subpar. Meanwhile, 85% of those with “state of the art” tech are pulling clients from advisors stuck with outdated platforms.
Advisor360° surveyed 300 financial advisors. Participants self-identified as being responsible for managing, on average, $2 billion in assets – individually or as part of a team – from firms with an average $103 billion in assets under management. The survey was conducted between September and October 2024.
