Want to adopt AI wisely? Ask these 3 questions first

It's incredible how much the wealth management industry has evolved in just a couple of decades. Early in my career, I remember relying on spreadsheets, juggling yellow legal pads and meeting clients exclusively in person. Then came digital tools that help advisors analyze data, manage investments and communicate with clients more efficiently. 

And now artificial intelligence, from companies like OpenAI, and its latest rival DeepSeek, is helping advisors provide deeper and more actionable insights to clients while streamlining everything from client onboarding to portfolio rebalancing — essential functions in an increasingly competitive landscape.

Yet despite the buzz, adoption among advisory firms has been slower than most predicted. While many financial planners recognize the potential of AI — one study showed almost half of advisors plan to adopt it at some point — significantly fewer have actually integrated it into their practices — only 12%, according to that same study. 

Why the hesitation? With the pace of innovation moving at fever pitch and the list of AI tools continuing to grow, incorporating artificial intelligence into a practice can seem overwhelming. 

READ MORE: Advisors are getting more comfortable with AI, with exceptions

But that needn't be the case. AI is ultimately simply a tool to help realize business goals and help clients pursue fiscal priorities. Firm leaders who ask themselves — and answer — the following three questions can make the process more focused and less intimidating:

• Which areas of the client experience need the most improvement? 
• Which of my day-to-day activities aren't driving outcomes for my clients or my business?
• Where should I be spending more time to add value to my practice and clients? 

Armed with the answers, take a bit of time to reflect. Then work backward to select AI solutions that help deliver exactly those results. Here are some practical ways AI can help enhance your day-to-day work and the service you provide to clients.

Managing administrative tasks

For many advisors, AI's biggest impact starts behind the scenes. AI tools now exist to transcribe meeting notes, highlight key follow-ups and even schedule appointments. 

When integrated into a firm's CRM system, AI can help ensure that nothing slips through the cracks, whether it's scheduling the next review meeting or a thank-you note.

READ MORE: AI tax tools — and their vast potential to reshape the industry

Elevating client communication

Today's client expects instant access to information and proactive communication that AI-powered tools can help deliver. Think personalized emails, automated reporting and interactive client portals that provide 24/7 access to portfolio details. 

Such portals can offer "self-service" options like AI chatbots that answer common questions and provide responses specific to the client's data and situation. AI can sift through market data, social media and news feeds to find items that matter to each client and help draft personalized emails, saving time and making outreach more targeted.

READ MORE: AI tools that find answers, suggest tax strategies and draft emails for you

Optimizing portfolio management

Remember the days of manually rebalancing portfolios? AI can scan portfolio data, identify tax-loss harvesting opportunities, keep track of required minimum distributions and flag potential risks. These tasks are more analytical and less transactional, helping deliver better investment outcomes for clients.

Deepening client analytics

AI can analyze large sets of client data, including spending patterns and risk tolerance changes. It can flag specific changes in behavior, say when a client stops making regular contributions to their portfolio or starts actively engaging with the client-facing website. Armed with these insights, advisors can better understand client needs and develop hyperpersonalized financial plans that offer truly bespoke advice.

At the end of the day, AI is just one piece of the puzzle in our increasingly tech-driven world. The true value still comes from the relationships you nurture and the advice you deliver. 

While face-to-face interactions will continue to play a role in a practice, these new innovations will enable advisors to build stronger relationships, deliver more value and ultimately help clients pursue and achieve their financial dreams.