In the wealth management industry, there are some certainties, including it’s a highly competitive field, technology is an increasingly prominent part of advisors’ value propositions and technology can help firms stand apart from the competition.
Those points are crucial because technology, particularly as it pertains to the wealth management industry, is very much a lead, follow or get out of the way proposition. Advisors’ AI progress is vital for another reason: younger prospects prioritize technology in the advisor selection process, confirming that upping a practice’s AI capabilities is a credible, important long-term investment.
Wealth managers cite costs, educational needs or the ability to identify exactly where AI can be best deployed within an advisory firm as the primary headwinds to near-term adoption. To be sure, all plausible reasons. Still, various surveys indicate advisors are bullish on AI’s long-term trajectory and believe it will positively benefit the advisory industry.
Put it all together and it’s not surprising that advisors view AI as important to maintaining and expanding competitive advantages.
Pass on AI, Get Passed by the Competition
Let’s be honest. Some wealth management firms have been reluctant or slow to up their technology games and that situation is arguably even worse with AI. Regardless of what the reasons are for that laggard status, the firms in that situation need to change their ways. The Spring 2026 InspereX Pulse Survey confirms as much.
Of the 783 advisors queried, “78% said advisors who do not adopt AI tools in their practice over the next 3-5 years will be at a competitive disadvantage. Further, 68% said advisors who embrace AI will outperform firms relying solely on traditional methods and tools.”
For the industry and clients alike, the good news is that many practices are hip to the need to embrace AI as means of staying ahead of the competition.
“The majority (70%) said they’re actively using at least one AI tool in their practice right now. But that number jumps to 84% when looking at the high AUM ($351M+) advisors. This segment of advisors also has stronger, more definitive views on the impact of AI on competitiveness,” notes InspreX.
That’s pretty compelling evidence. If a firm with say $350 million, $500 million or $1 billion in assets under management is cozying up to AI, it’s evident the $50 million, $100 million, etc. shops should be doing the same.
AI Exposing Generational Divides
Not surprisingly, wealth management usage of AI breaks along age lines, meaning younger advisors have been more rapid in their deployment of this technology than older rivals.
“AI adoption drops significantly from the youngest to oldest advisors, with 84% of advisors aged 22-35 embracing AI tools compared to 51% of advisors aged 64-77,” observes InspereX.
Maybe that’s a “hey boomer” scenario. Perhaps it’s not, but the point is the future of financial advice is here, it includes AI and if older advisors need to recognize as much and swim with the tide, not against it.