Advisors Look to AI for Client Outreach
Advisors are eyeing artificial intelligence (AI) technology to help advance client communications.
A new report from Morningstar, “How Financial Advisors Can Deliver Value in 2026,” finds that 63% of advisors surveyed believe the technology will have the greatest impact in improving client communications, and more believe the tool will have a greater impact on the industry compared to years past.
According to the study, advisors currently utilize generative AI for internal productivity workflows (26%), client communications (25%), and idea generation (25%).
The research also looks at the top concerns for advisors today, including changing market conditions and growing access to private markets. According to Morningstar, between July and October 2025, advisors were primarily concerned over tariffs and trade policy (41%) and geopolitical tensions (37%) in the summer, and the possibility of an economic slowdown and recession (45%) in the fall.
Despite their worries, 41% of advisors admitted feeling “generally optimistic” about the market.
“By cutting through the noise and focusing on the fundamentals of investing along with goal alignment, financial advisors can be a source of calm for clients while delivering long-term solutions,” the research read.
The potential inclusion of private investments into 401(k) plans has also been top of mind for advisors, Morningstar reports. Half of advisors who offer private investments expect to see growth in client allocations to private investments within the next year. Still, over a third cite significant concerns over private investments, including 38% worried about fees, 36% concerned over limited liquidity, and 34% apprehensive over a lack of transparency with underlying holdings.
Other takeaways from Morningstar’s study include evolving client demands and misaligned advisor priorities. A small number (22%) of advisors reported seeing shifts in service expectations from clients, like real-time communication, personalized recommendations, and more client involvement during the decisionmaking process.
Advisors also reported a desire to spend more time on client-focused activities. Survey respondents observed that while they spend 52% of their week on client-related tasks, 58% wish they could spend more time there.
Morningstar’s study was based on 527 total online responses across gender, generation, firm type, career tenure, size of practice, and assets under management (AUM).
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.