02.05.26

Financial Advisors Weigh AI Upside Against Demand for Human Advice

by: Leo Almazora

A 2025 study from Morningstar found U.S. financial advisors increasingly using generative artificial intelligence (AI) for efficiency, with two-thirds leveraging it for tasks like meeting summaries, idea generation and client communications. While 57% now see AI having a significant industry impact, nearly half remain uncertain about its net effect, and 21% view it as a threat — chiefly because clients might perceive AI as replacing human advice. Advisors aim to use AI to streamline routine work, freeing time for client-focused planning, behavioral coaching and emotional support, which remain central to trust and satisfaction. The study highlights growing client expectations for personalized guidance, underscoring the need to balance technological tools with human judgment.

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