Gone are the days when artificial intelligence (AI) was seen as a universal threat to the wealth management industry. Concerns and outright fears have given way to the realization that AI and broader technology concepts are integral to practices’ long-term growth.
More and more advisors see AI and tech as forces for good and that much was confirmed at LPL Financial LLC’s recent Focus 2025 conference, which took place last month in San Diego. For advisors dragging their heels when it comes to AI adoption, consider this takeaway from the conference: 78% of those polled at the event said they’re already tapping into AI or plan to do so soon.
That’s just one statistic, but it can be looked at as confirmation that the intersection of AI and financial advice is a lead, follow or get out of the way proposition. Those quick to adopt AI could well flourish and deliver a superior client experience. Advisors that are slow on this front may be left wondering what could have been. Fortunately for the industry and, more importantly, clients, data confirm most advisors aren’t letting AI pass them by.
In very simple terms, it’s 2025. Clients across all demographics are increasingly tech-savvy and they expect the same of their advisors. Advisors who are AI and tech leaders may well attract and retain more business while those that are tech laggards run the risk of suppressing practice growth.
AI, Tech Increasingly Important to Advisors
LPL is just one firm, but as of the end of the first quarter, it had nearly 29,000 advisors flying its banner, representing significant sequential and year-over-year growth. Point is its advisors’ outlook on AI and tech is arguably representative of the industry at large.
“More than half of LPL advisors surveyed (54%) plan to grow their businesses by upgrading technology systems, including AI and automation tools,” according to the poll conducted at the conference. “When asked what they see as the biggest challenge to their business over the next 12 months, only 12% of the advisors surveyed identified disruptive technology, like AI – compared to challenges such as economic/market volatility (23%) and sustaining growth with their client base (23%). ”
Importantly, about two-thirds of LPL advisors see new tech and related platforms as avenues for bolstering their business.
AI and other practice-related technologies aren’t cheap, but those investments can pay-off in terms of lowering some fixed, higher time efficiencies and improved targeting of affluent and niche client segments.
Going Beyond AI
Advisor deployment of AI and technology is worthy of the headlines it generates, but those aren’t the only themes shaping the future of wealth management. Smart advisors wanting a glimpse of the future and how to prepare for it should remember two words: customization and expansion.
As in expanded product and service offerings and increased levels of customization – both of which are expected by today’s ever-demanding clientele.
“The survey also found that LPL advisors are looking to add wealth management services to grow their businesses, with one-in-five (18%) expecting to expand their offerings of alternative investments and more than a third (37%) hoping to provide additional planning or concierge services such as financial coaching or estate planning,” concludes LPL. “LPL advisors intending to expand up-market to serve higher-net-worth clients are prioritizing adding more wealth planning services to their offering (34%) and cultivating center-of-influence relationships with CPAs and attorneys (24%). ”
