AI Raises Service Expectations Without Replacing FAs
Artificial intelligence is becoming a regular part of investors’ financial lives, but clients are not ready to replace their advisors with technology. Instead, AI appears to be raising expectations for the personalized guidance, proactive service and digital experience that registered investment advisors provide.
Three-quarters of investors use AI at least occasionally for financial tasks, according to Betterment Advisor Solutions’ third annual advisor survey. Uses range from researching financial concepts to assessing whether advisory fees provide sufficient value.
Only 3%, however, said they would consider replacing their advisor with an AI-powered service. About 76% said they would still want an advisor even if AI could answer most of their financial questions.
The findings reveal a pronounced generational divide. Younger investors are more likely to use AI while also communicating more frequently with advisors and seeking greater support during major financial decisions. Two-thirds of respondents wanted additional guidance during stressful periods, such as purchasing a home, with demand highest among Generation Z and millennial clients.
Overall loyalty remains strong. Nine in 10 investors said they were satisfied with the value their advisor provides, while 56% identified trust in their advisor’s expertise as the primary reason for staying — ranking it above investment performance.
Younger clients were less settled. About 53% of Gen Z respondents had seriously considered changing advisors, and 18% had already done so. In addition, 63% of Gen Z and millennial investors said poor technology or a cumbersome digital experience could influence them to switch, compared with 28% of baby boomers.
“Trust in advisors remains the foundation,” Betterment CEO Sarah Levy said. “What’s changed is the bar clients set for service.”
The June survey included 1,001 U.S. investors who had used an advisor for at least one year and maintained between $10,000 and $30 million with that advisor.