More Advisors Expect AI to Outpace Traditional Practices
Financial advisors who avoid adopting artificial intelligence (AI) technology could be putting themselves at a disadvantage.
Most advisors (78%) surveyed in the 2026 InspereX Pulse Survey believe that colleagues who fail to adopt AI tools in their business within the next three to five years will be at a competitive drawback.
Rather, 68% expect advisors who embrace AI to outpace firms who rely solely on traditional business practices. Greater adoption could even allow some smaller firms to compete with larger practices, say 63% of advisors.
The vast majority (83%) of respondents believe the technology will evolve business operations without replacing advisors. Instead, 74% predict the new technologies will impact the business’s ability to attract and retain next-generation clients, while 76% say advisors who use AI will be able to service more clients without upping staff numbers.
“The future of financial advice has arrived,” said Chris Mee, managing director at InspereX. “However, despite the power, evolution and understandable enthusiasm around these technologies, advisors are not being replaced by AI. Rather, they are using these tools to make their practices more efficient and to streamline tedious administrative work so they can focus on higher impact client interactions, which will elevate their value and enable advisors to scale personalized advice.”
Growing number of advisors using AI
The majority (70%) of advisors surveyed say they’re actively using at least one AI tool in their practice right now, with the number jumping to 84% for businesses with assets under management (AUM) over $351 million.
Younger advisors were likelier than older colleagues to embrace the technology. Eighty-four percent of advisors between the ages of 22 to 35 use AI tools compared to 51% of advisory professionals ages 64 to 77.
Their hesitancy could be a result of broad uncertainty with the technology as they age into their professions. Several (13%) seasoned colleagues noted feeling apprehensive about learning AI at “this stage in their careers.”
When asked about the areas AI is utilized the most in, 74% of advisors said research and insights; 73% responded client communications and follow-up; 72% indicated meeting preparation and documentation; 56% said planning and proposal drafting; 52% stated marketing and content creation; and 43% said back-office tasks and operations.
When asked about the fields they would never assign AI to, 26% said product selection; 23% mentioned portfolio recommendations; 20% added suitability-related analysis; and 6% said meeting summaries/notes.
Investor interest rises as many still value advisor interaction
The influx of advisors utilizing AI tools comes as more participants grow keen of the technology, despite still maintaining a strong desire for human advice.
The 2026 Defined Contribution Participant Pulse Survey from Invesco found that a greater number of retirement savers trust AI (55%) to help manage their investments more so than family members (45%).
Further, 53% regularly or occasionally use AI-powered tools for personal financial planning or investment decisions.
While only 25% of plan participants surveyed said they “fully” trust AI to select investments for them, 58% said they would do so if human review was involved.
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.