‘AI Won’t Replace FAs, But Advisors Using AI Will’: Raymond James CEO Says

Raymond James is continuing its push to emphasize financial literacy for its financial advisors through artificial intelligence, according to Chief Executive Officer Paul Shoukry. 

“These investments are designed to create efficiencies, give advisors more time to deepen client relationships, and further enhance the client’s experience,” Shoukry said on the firm’s quarterly earnings call. 

“We are investing to equip advisors and associates with private wealth tools and resources to deliver deeper, more tailored advice while keeping personal relationships at the center,” he added. 

Raymond James’ spending on AI comes after the firm announced in April its plan to spend $1.1 billion annually on technology, which will mostly be allocated to its Private Client Group unit. 

In January, Raymond James launched its in-house proprietary AI agent named RAImond, which leverages generative AI to provide advisors with financial insights to expand their offerings and feedback to their clients. 

The AI tool was deployed companywide on June 15 and currently has 6,500 unique users and a 99.5% satisfaction rate, Shoukry said. 

Shoukry also stated on the earnings call that the firm’s rollout of its AI Academy, which launched in May and offers various capabilities including training and workshops, has roughly 20,000 participants. 

Shoukry stated on the call that the firm remains committed to investing in AI for its advisors, even though the expenses of integrating it could pose some challenges. 

“AI won’t replace advisors,” Shoukry said. “Advisors who use AI will replace advisors who do not use AI. We believe the investments that we’re focused on have high conviction levels, and that the long-term ROI will exceed the cost of utilizing AI.” 

While Raymond James has made some large advisory additions in recent months, the firm stressed that maintaining its advisor retention serves as the foundation for bolstering its growth. 

Raymond James has a 97% advisor-satisfaction rate based on internal surveys, Shoukry revealed.

During the quarter, the firm added advisors across its contractor and employee channels, with about $23 billion in total client assets and trailing 12-month production, totaling $156 million. 

Raymond James’ Private Client Group brought in $1.86 trillion as of June 30, a 9.3% quarter-over-quarter increase and a 17.9% increase year-over-year. 

Net revenues in the Private Client Group business totaled about $2.84 billion by the end of June 30, a 1.1% increase compared to the previous quarter and up 14.2% compared to the prior-year quarter, according to its earnings report.