Artificial intelligence has been discussed in WealthTech boardrooms and client meetings for years, but for much of that time it lived behind the scenes. AI was cast as a utility, a technology that could process data faster, automate compliance, or run reports. Everyone knew it could be useful, but was it transformative?
The consensus was…not really.
Well, whoops. Now, just like in almost every industry, that conversation is changing. Boards are no longer viewing AI as a back end technology, sitting in the server room helping to automate. It is now a visible, functional, front end technology that is taking on functional roles in wealth management organizations. That’s why in my view it’s better to think of AI not just as a technology, but as a member of the org chart. In other words, AI is a new kind of colleague with its own policies, procedures, and management framework.
From Back Office Tool to Frontline Teammate
This framing matters because it changes how we think about the future of wealth management. When I talk to wealth management leaders, I urge them to treat AI as a colleague – a digital teammate that can handle scale, speed, and regulatory complexity, while human advisors lean into trust, empathy, and judgment. This isn’t about machines displacing people, like with a human colleague with a particular skillset, it’s about elevating both by letting each do what they do best.
Meet Your Digital Colleague
Here’s an example – for years the heart of wealth management has been the advisor-client relationship. No algorithm can replicate the experience of sitting across the table from someone who has earned your trust, who knows your family’s story, or who can calm your fears when the market plunges. That human connection is why clients stay, even when performance fluctuates.
But too often, advisors spend more time shuffling paperwork, reconciling data, or responding to compliance checks than they do with their clients. This is where AI comes in. Imagine AI colleagues that review transactions overnight, flag anomalies instantly, check for potential fraud, or prepare customized reports before a client meeting (with human oversight). Instead of replacing advisors, AI creates the time and space for advisors to do what only humans can: listen, empathize, customize and strategize a plan tailored for their client.
I’ve spoken with firms already seeing this benefit. One RIA uses AI to draft simple emails to hundreds of clients, freeing its advisors to focus on five or six deeply personal conversations each week. Another uses AI-powered compliance monitoring, cutting manual review hours in half. In both cases, advisors report higher job satisfaction and stronger client engagement, not because they were replaced, but because they were freed to be more human.
Oversight Is Not Optional
Of course, welcoming a new “colleague” requires oversight. Algorithms learn from data, and financial data is not immune from bias. We know from decades of research that historical patterns can reflect inequities such as differences in lending, access, or wealth accumulation across demographics. If firms deploy AI without careful governance, they risk reinforcing those inequities at scale.
The answer is not to shy away from AI, but to treat it with the same accountability we expect of human colleagues. That means regular audits for bias, ethical review boards that include diverse voices, and transparency about how AI reaches its conclusions. Think of it like hiring a promising new team member – you wouldn’t let them make decisions without oversight, coaching, or accountability. The same should apply to AI.
Turning Legacy Data Into an Asset
There’s another piece here too – legacy data. Many firms have decades of information locked in systems that were never designed for today’s tools. That data is messy, incomplete, or underutilized. But within it lies enormous value from recognizing patterns of behavior, to recurring signals of unmet client needs, to flagging evidence of emerging risks. If curated responsibly, legacy data can power AI to deliver insights that truly differentiate an advisor’s offering – the key is to invest in cleaning and governing data so it becomes an asset, not a liability.
Moving From Efficiency to Engagement
While we hear, everyday, about the potential of AI, financial services are always moving at a pragmatic pace. Trust is the currency of our industry, and no firm can afford to erode it by adopting flashy tools that clients don’t understand. That’s why I believe AI adoption will unfold in stages.
The first stage is already here: AI in compliance and operations. Document review, transaction monitoring, and workflow automation are low-risk, high-volume use cases where efficiency gains are obvious. The second stage is client engagement; using AI to generate personalized communications, predict financial milestones, or suggest savings nudges. Clients may not even realize AI is working behind the scenes, but they’ll feel the increased relevance.
The final stage will be AI as a direct partner in giving a client advice. But even then, the most successful firms will frame AI as support, not substitution. Advisors will still be the ones sitting across the table, bringing context and empathy. The difference is that they will arrive with richer insights and more time to listen, thanks to their digital colleagues.
Rethinking the Org Chart
When you sketch this new model, the org chart starts to look different.
Operations teams have digital colleagues to run workflows and monitor compliance. The Client Engagement department uses AI to generate insights and draft communications. Advisors, freed from busywork, focus on strategy, empathy, and long-term planning. And across the org chart, firms embed governance roles for the AI that is being implemented, tweaked, and innovated against, and these people will ensure AI operates transparently and ethically but also is continually updated so the firm can remain competitive.
Far from eliminating jobs, this transformation elevates positions, and the humans who are working within firms. Entry-level staff evolve into data strategists or client-experience designers. Advisors spend more time solving complex problems instead of managing paperwork. Firms move from reactive compliance to proactive engagement, and the whole organization becomes flatter, faster, and more collaborative.
WealthTech’s Moment to Lead
WealthTech is particularly well positioned to lead this shift. Unlike other corners of financial services, wealth management is fundamentally about personalization. Every portfolio reflects not just financial assets but life goals, risk tolerances, and family legacies. AI’s ability to scale personalization makes it a natural fit.
The sector has already proven its willingness to adopt digital-first approaches.
Robo-advisors and digital onboarding paved the way for clients to accept technology as part of the advisory relationship. The next chapter is deeper: integrating AI not just as a background tool but as a transparent partner. Done right, this will allow WealthTech to offer clients the best of both worlds – personal relationships and digital scale.
But we must never forget what sets advisors apart: trust. Technology can crunch numbers, but it cannot look a client in the eye and say, “I understand what retiring early means for you, and here’s the plan we’ll follow together.” That human moment is irreplaceable. The firms that win will be those that balance scale with humanity, integrating AI as a partner while keeping people at the center.
Four Priorities for the AI-Ready Firm
So, what should firms do now? I recommend starting with four priorities.
First, audit and govern your data; you cannot build trustworthy AI on shaky foundations.
Second, adopt new tools and platforms incrementally, beginning with operations, then move into client engagement before touching advice.
Third, invest in your people. Advisors who see AI as an ally will thrive; those who fear it will lag behind.
And fourth, be transparent with clients. Show them how AI helps, don’t hide it in a black box.
AI is not a competitor waiting to replace us. It is a colleague ready to sit beside us. The firms that recognize this, and act accordingly, will be the ones defining the future of WealthTech. They will deliver better outcomes for clients, create more meaningful roles for employees, and shape a new model of financial advice that bridges digital scale with human trust. That, to me, is not a story of replacement – it’s a story of progress.
