More than 8 in 10 Advisors Said They Now Use Generative AI

Advisors are warming up to generative AI.  

Some 85% of advisors said artificial intelligence has helped their practices, up from just 64% last year, according to a new survey from Advisor360. Around three-fourths of respondents said the benefits of generative AI tools were immediately noticeable. In fact, researchers found a “clear shift” in advisors’ attitudes toward AI compared with just a year ago. “Advisors are hungry for Gen AI-enabled tools that can boost their business,” Advisor360 President Darren Tedesco said in a statement.

And, wealth managers aren’t just dabbling with the tech to tighten up the occasional email, either. Some of the top use cases for generative AI include predictive analytics, marketing strategies, and administrative tasks, the survey found. It’s a major opportunity for advisors that can find ways to add the new tools into their workflows.

A Whole New World

Even with all the adoption, it’s still an understatement to call AI tools — like note-takers, copy-writing programs, and data analytics software —  game-changers. Today, only 8% of advisors see AI as a threat to their livelihood, quite the drop from 21% a year ago, the survey found. Meanwhile, just 9% said they don’t use AI tools at all.

Advisors’ enthusiasm for AI is only growing. Firms and organizations are expanding their C-suites to get ahead of the new technology and adapt to a changing landscape:

• Last week, Raymond James promoted Stuart Feld to the newly created role of chief AI officer.
• The position will be in charge of automating advisory tasks and providing advisors with better analytics tools. 
• The Teachers Insurance and Annuity Association of America, investment firm AllianceBernstein, and even the Federal Reserve Board also appointed their own CAIOs.

There may come a day when humans are subservient to their AI overlords, but for now, advisors are using the tools to cut down time on grunt work and increase the time they spend with their clients.