Within the financial services industry, artificial intelligence (AI) has already been employed by provider firms as a back-end function for client meetings or document review. However, there is potential to expand its use to include investment analysis, financial planning, and asset mapping. As providers increasingly look to AI for these functions, they must also work to assuage clients' concerns about AI as part of their advisor relationships, according to the latest Cerulli Edge—U.S. Retail Investor Edition.

Cerulli’s research finds just 38% of affluent investors are at least somewhat comfortable with AI technology, a figure roughly equal to the 39% who said the same in 2024. While younger investors are the most supportive of AI in their financial relationships—more than 60% of those under age 50 are comfortable—that support drops sharply among those in their 50s (to 42%), and down to 16% among those age 70 and older.

“There seems to be little doubt that AI has the potential to make the financial services industry significantly more efficient,” says John McKenna, research analyst. “Currently, the emphasis is on non-value-added tasks, such as client meeting setup, notetaking, and document review. However, broader adoption across the advisor-client relationship may be in the works,” he adds.

Providers with strong AI ambitions will need to recognize that they are marketing to an investing public that has long been skeptical of technological developments that could impact the personal connection they share with their financial advisor. “If AI is to play a role in their business operations, advisors would do well to disclose where it is used, how clients' sensitive information will be protected, and how it enhances, rather than detracts from, the advisor-client relationship,” concludes McKenna.