It seems like just yesterday that AI tools like ChatGPT became freely available to the general public. Since then (OpenAI introduced ChatGPT to the world in late 2022), more financial advisors are using AI in their practices and seeing tangible results. In this blog, we’ll discuss trends in AI usage, how advisors are using AI, why it’s worth the investment and what clients think about it. For advisors not using AI, we’ll also explain why it’s critical to get on board.

Key takeaways:

  • AI use by wealth management firms increased from 51% in 2023 to 74% in 2025 (+23%). 
  • Top firms say investing in AI pays off, with 2X ROI or more.
  • The top ROI drivers for AI are trading/portfolio optimization and customer experience.
  • The average advisor loses 300 hours per year on non-client-facing activities.
  • Advisors who don’t use AI “will get left in the dust.”
  • Most investors (83%) are OK with advisors using AI for some tasks but 44% don’t want emails and texts answered by AI.

Adoption of AI by wealth management firms is growing fast

While the financial services industry was skeptical about AI at first, those opinions have changed fast. In fact, F2 Strategy’s Q2 2025 Trend Report revealed that the percentage of wealth management firms using AI has increased by 23% over the past two years—from 51% in 2023 to 74% in 2025.

Investing in AI can increase revenue and cost savings

According to Nvidia’s 2025 State of AI in Financial Services Report, the use of AI by financial services firms is not only growing, it’s delivering ROI. Along with improving efficiencies in firms, Nvidia’s research found that investing in AI really pays off, with top firms estimating 2X ROI or more.

The report also revealed that 70% of those surveyed attribute a revenue increase of 5% or more to AI, along “with a dramatic rise in those seeing a 10-20% revenue boost.” In addition, over 60% of those surveyed reported a reduction in annual costs by 5% or more due to their adoption of AI technology.

How are financial advisors using AI?

Advisors use AI to help write marketing content, enhance client communication via chatbots, process documents, generate reports and streamline client onboarding. According to the F2 report, some of the key use cases of AI for advisors include:

  • Personal Assistants: AI can tackle note taking and meeting prep for client interactions.
  • Compliance and Risk Management: Automating compliance review of outbound communications with AI saves advisors hours of work on compliance.
  • Data Extraction and Document Review: Unstructured data review can save advisors time across multiple personas.
  • Financial Planning: Working with tech providers that offer planning tools can boost the productivity of complex planning conversations on topics like estate planning and taxes, among others.

In terms of ROI, Nvidia’s research revealed that the top use cases for generative AI were trading and portfolio optimization (25% of responses) and customer experience and engagement (21% of responses). Clearly, AI can be a worthwhile investment for advisory firms. So, are advisors who ignore AI making a big mistake?

‘If you’re not using AI, you’ll get left in the dust’ 

So says Jack Martin, Simplicity InsurMark’s Virtual CMO and co-founder of Elite Advisor Group. According to Martin, AI is critical for advisors who want to spend more time on client-facing activities, because it does a great job at getting non-client-facing tasks off of their desks.

“Michael Kitces estimates the average advisor loses 300 hours a year to non-client facing activities. Reconciling billing, researching client reviews, validating allocations and trade instructions, all that kind of non-client-facing and non-revenue stuff sucks up about six hours a week. AI really helps advisors be better advisors, because it gives them a lot of that time back,” Martin says.

How do investors feel about advisors using AI?

It depends on how the advisor is using it. For basic tasks, yes. For making investment decisions or responding to emails and texts, not so much. According to an investor survey by Janus Henderson, 83% of investors who use a financial advisor or are thinking about hiring one feel either good or neutral about an advisor using AI for administrative tasks or producing educational content.

On the other hand, not all investors are comfortable with advisors using AI to make investment recommendations (over a third would object). In addition, 44% of those surveyed said they would be upset if their advisor used AI to respond to emails and texts.

Now, that’s actually good news because it shows that investors covet human contact in the client-advisor relationship. Using AI to handle mundane tasks frees up the advisor to spend meaningful time with their clients to uncover their fears, dreams and goals. Ultimately, it provides advisors with the extra bandwidth they need to build deeper relationships, boosting both retention and referrals.

Conclusion

As AI continues to evolve, the role it plays for financial advisors will continue to grow. Adopting AI is not only critical for staying competitive and boosting ROI—it creates more time for what matters most: helping clients make better financial decisions. Ready to get started with or expand the use of AI in your advisory practice? We share several actionable tips for using AI to crush daily challenges, here.

Looking for a trusted partner to help grow your business? Simplicity InsurMark would love to hear from you! We help ambitious advisors build more sustainable and successful 21st century businesses. To learn more, contact us at (800) 752-0207 or visit our contact page to schedule a discovery call today.

As an ADO – Advisor Development Organization™, Simplicity InsurMark provides solutions to meet the ever-evolving needs of financial professionals with a mission to protect and enhance the financial security of every home in America.