CFP Board Predicts Future AI Financial Landscapes
As artificial intelligence (AI) moves its way into the retirement planning market, the CFP Board unveiled key areas for institutions prioritizing the technology in its services. Â
The firm’s AI Working Group uncovered several action items for varying groups in the retirement planning market, from CFP professionals and firms to technology providers and policymakers.
Among the top recommendations from the CFP Board for firms includes prioritizing data strategy and AI governance; recruiting talent with some knowledge of the technology; and supporting experimentation with tools, training and time to understand AI applications.
“A clear AI strategy with a phased transformation plan is non-negotiable,” the CFP Board wrote in its research. “Firms must fundamentally change how they onboard new advisors and quickly transition from using AI for back-office tasks to client facing use cases that generate business.”
The momentum behind AI has grown over years, with more financial planners noticing a potential in applying AI to services. According to the CFP Board, 96% of advisors believe generative AI can revolutionize client service and investment management. Further, 75% of firms report improved decisionmaking and operational efficiencies due to AI.
Policymakers are also responding to the increased demand. As of 2025, 1,079 AI-related bills have been introduced in Congress and across all 50 states, with each encompassing AI governance, risk management, workforce retraining, consumer protection, algorithmic fairness, transparency, or AI literacy.
This is all even as clients remain cautious over the technology. Seventy-seven percent of client respondents noted a distrust in AI, adding that they do not trust businesses to use the tool responsibly.
Despite the skepticism, the CFP Board observed a shift in the industry to deliver personalized and unique service while reducing administrative burden. “As AI reshapes their scope of work, CFP professionals will need to strengthen expertise in advanced areas, including tax and private investments, while also investing even more in the human side of their practice of building trust and deepening client relationships,” the research stated.
Firms who thrive at this point will be able to balance human support with AI technology, and support transparency, clear communication, and streamlined integration with these tools, the CFP Board added.
Future scenarios in an AI-driven world
The CFP Board’s AI Working Group analyzed four potential futures that may arise as the technology continues to disrupt the market.
This includes one future as the “Financial Planner’s Best Friend,” where by 2030, AI is seen as a trusted source that transforms how financial advisors deliver services and how clients experience them. AI would handle client onboarding, portfolio management, risk modeling, compliance, and administrative work, yet human planners continue to remain critical in their roles.
In the next scenario, “MyAI,” customers rely solely on AI assistance for most financial needs, including rebalancing investments and career coaching. “Larger firms shift to providing the infrastructure behind AI ecosystems, while niche firms and adaptive advisors thrive by differentiating through human connection,” the CFP Board predicted in this circumstance. “The profession is not eliminated but redefined and centered around the unique human skills that AI cannot replicate.”
The third instance, “Full Circle Finance,” occurs in a world where AI never recovers from consumer skepticism. While the technology remains important for back-office features in efficiency and compliance, demand for human-led advice continues to surge. However, dwindling recruitments and heavy client loads lead to burnout for these advisors. The industry is left to decide how it can meet demand for human guidance with limited financial professionals available.
In the last scenario, “Silicon Valley Joins Wall Street,” Big Tech institutions have taken over market share from traditional financial firms by offering “ultra-low-cost, AI-driven platforms that deliver personalized financial planning to mass-market consumers,” the CFP Board projected. Consumer sentiment is largely optimistic until a global recession exposes AI’s vulnerabilities. As a result, Big Tech platforms will continue to service lower-income and mass-market consumers while clients with complex or unique financial planning needs will return to working with human advisors.
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.
