The wealth management industry is entering a period of enormous disruption — one that few are talking about directly with clients. While many firms still promote “comprehensive financial plans,” the reality is that technology — particularly AI — is changing the value proposition of financial planning itself.

It’s important for the wealth management industry to be transparent about these shifts, and more importantly, how it’s evolving to deliver value in ways technology alone cannot.

Financial Planning Is Becoming Commoditized

For years, one of the primary services that wealth advisors offered was the creation of financial plans: projecting retirement income, running Monte Carlo simulations, optimizing asset allocations, estimating tax liabilities, and so on.

Today, AI-powered tools — including platforms like ChatGPT — can generate surprisingly robust financial plans almost instantly (and for free). They can factor in income, expenses, inflation assumptions, portfolio returns, Social Security, tax brackets, and estate considerations, often with speed and sophistication that rivals many traditional planning software packages.

In many cases, these tools can produce a plan that is mathematically sound — and in some ways, better than what many advisors produce using older templates.

The reality is this: “building a financial plan” has become a technical commodity.

Where AI Falls Short: The Real Value of an Advisor

If financial planning becomes automated, does that make the advisor obsolete? Not necessarily, but it does change where the real value lies.

Investment Management: While AI excels at processing data, it lacks real-world investment judgment. Models may suggest theoretical “optimal” portfolios — but real markets don’t always follow the models.

• AI may over-rely on historical data that doesn’t account for new risks.
• AI doesn’t fully understand liquidity needs, tax efficiency, concentrated positions, or estate dynamics that can dramatically affect portfolio construction.
• AI doesn’t have the discretion to adapt when client-specific factors — like a sudden business sale or inheritance — require a nuanced shift in strategy.
• Most importantly, AI cannot replicate the human intuition that comes from years of experience navigating markets through bull runs, recessions, crises, and recoveries. An effective advisor draws on pattern recognition, market memory, and a seasoned understanding of investor psychology to make subtle adjustments that no algorithm can replicate.
• Good advisors often incorporate intangible factors — such as geopolitical uncertainty, regulatory shifts, or the “feel” of market sentiment — applying experience and judgment to navigate complexities that algorithms alone can’t quantify, but which can materially impact client outcomes.

Put simply: investment management isn’t just portfolio optimization — it’s strategic, tax-aware, highly personal, and deeply experiential.

Strategic Adaptation Over Time: Even a great plan or model becomes outdated as life changes. Laws evolve. Tax codes shift. Markets move. Goals change. An ongoing advisory relationship ensures your strategy is continually updated — something AI alone cannot do.

True Personalization: AI can process data, but it doesn’t fully understand the human element (yet). It can’t effectively weigh a person’s values, unique circumstances, or competing goals that don’t fit neatly into a spreadsheet.

Complex Decision-Making: Financial planning can often be nuanced and require high-level thinking. Business ownership, blended families, concentrated stock, estate planning, charitable giving — these require strategic thinking, not just math.

Behavioral Coaching: Market volatility, fear-driven headlines, and sudden downturns will always test even the best financial plans. AI can’t pick up the phone, offer perspective, or help you stay disciplined in the face of uncertainty.

The Advisor of the Future

We believe AI will make good advisors better. It will handle much of the “number crunching” and data analysis, allowing advisors to focus on higher-order thinking, real-world strategy, and personal guidance. At the current stage of AI, it cannot replicate the seasoned judgment, discretion, and real-world decision-making required to navigate unpredictable markets, manage complex risks, and design strategies that reflect each client’s distinct financial objectives and life dynamics.

This content is intended for informational purposes only and should not be construed as personalized financial, legal, or tax advice. Individuals should consult with their advisory team to determine the most appropriate strategies for their specific situation.