Most RIAs I’ve talked to aren’t using artificial intelligence to its full potential. Data shows that large firms mostly use AI for simple tasks like notetaking, rather than for tracking client engagement, updating CRMs, scheduling meetings or onboarding. Even in its simplest form, many firms fail to use AI at all.Â
The main reason for slow adoption is often uncertainty about where to begin, not a lack of interest, even amid industry challenges such as an aging workforce and slow growth.
To make real progress, we must further our education on all available tools to focus on how AI can support business goals. Simply boosting in-office productivity isn’t enough to create real efficiencies or improve client experiences. The more efficient solution is finding ways to ensure that AI helps connect the dots and anticipate future client needs. The future of wealth management is about truly understanding clients, not making reports or trades faster. Advisors who integrate data, leverage AI insights and provide personalized, proactive service will build stronger client loyalty. AI should help you better understand your clients so you can develop stronger, tailored support for them.
Step One: Navigate the Sea of SolutionsÂ
There are now over 70,000 AI startups worldwide, giving wealth management firms plenty of choices. Some offer all-in-one platforms for things like CRM, portfolio management, accounting, financial planning and document management. Others focus on specific needs, such as web development or marketing.
Choosing the right solution can be challenging with so many available options. Try starting with a trusted, larger all-in-one platform to gain experience with the full suite of options, and speak with expert consultants who can also help tailor your approach to your business needs. Your custodian can be a helpful partner, sharing feedback from others in the industry to support your approach based on your goals. Once you’ve spoken with experts and seen what the technology can do, adjust your approach to fit your firm’s needs.
Step Two: Trust, But VerifyÂ
Due diligence is essential.Â
To use AI effectively, start by setting up a secure, private data repository so you do not share any personally identifiable information online. Financial fraud continues to proliferate, with the Federal Trade Commission reporting a fourfold increase over the past five years. Safeguarding client information is paramount and should begin by storing it on a secure file server. While reputable software can analyze data to improve decision-making, it’s important that your team continues to review it to ensure accuracy. These tools can improve over time, but there’s a learning curve. It’s important to balance technology with personal service. When problems arise, clients should always be able to reach someone who can help.
Choose a trusted firm with strong security and use only a private, secure repository—especially when handling clients’ personal information.
Step Three: Create Intelligent ProfilesÂ
Bring together each client’s financial information into a single smart profile. This helps address challenges and makes it easier to grow. Identify available data and possible partners to expand what you can access.
Combine behavioral data from digital interactions with banking insights, including transactions and liquidity changes, with real-time signals, such as spending patterns and cash flow gaps. By doing so, you create a profile that updates automatically for you and your client.
Step Four: Read the SignalsÂ
As clients’ needs change, advisors need to stay ahead. Setting up prompts can help spot important signals. For example, AI agents can flag changes in client behavior, like unusual spending or shifts in risk tolerance, to guide when to reach out.
Prompts that suggest actions based on these signals can help turn insights into solutions. If a client’s credit card usage changes, it might mean a cash flow problem, so you could suggest liquidity planning. If a client keeps opening estate-planning emails, offer a planning session. Let AI help you listen to your clients and notice what they aren’t saying, too.
Step Five: Layer in the Right AmountÂ
You don’t have to go all-in with AI right away. Break tasks into parts to determine where AI works best and where personal contact matters more. Automating a portion of client interactions, such as follow-ups and reminders, is a good place to start. Adjust your outreach based on each client’s behavior, preferences, and financial signals.
Advisors should use their judgment to determine the appropriate approach for each client.Â
AI can help you grow your advisory services exponentially when used strategically. Firms that can move beyond simple integrations and use behavioral data, financial insights, and real-time signals to offer truly personalized, proactive service will build client trust and succeed over the long term.
