High-net-worth investors are increasingly turning to artificial intelligence chatbots such as Claude and ChatGPT for portfolio recommendations and tax planning advice, according to statements from wealth management executives. Matthew Fleissig, CEO of Pathstone, described ChatGPT as potentially the largest investment advisor globally, highlighting the extent to which AI tools have penetrated the advisory market. Some industry leaders argue that AI consultation can enhance client engagement by enabling them to ask informed questions and conduct deeper discussions with their human advisors.
Wealth management firms are adapting to this shift by reconsidering how they justify their fees, particularly those serving mass affluent clients. Morningstar’s Sean Dunlop noted that wealth management stocks have declined as AI tools have become more prevalent, including tax planning software and personal finance features released in recent months. However, Dunlop suggested that traditional wealth managers are unlikely to disappear entirely, predicting instead that advisor efficiency will improve and client pools may expand as some investors gain confidence to manage accounts themselves.
Clients are also using AI to formulate detailed questions before engaging with advisory firms or requesting formal proposals. Northern Trust’s Pamela Lucina reported that the frequency of proposal requests has increased substantially since the emergence of AI chatbots, with clients now using these tools to prepare sophisticated inquiries. This development has the potential to streamline meetings by reducing time spent on basic information sharing and allowing advisors to focus on outcomes relevant to specific family situations.
Despite perceived benefits, significant risks accompany client use of AI for financial guidance. ChatGPT has provided incorrect tax strategies and miscalculated scenarios, while other errors include confusing ETFs with different weighting structures or hallucinating details from uploaded documents. Additionally, clients using personal AI accounts risk exposing sensitive identifying information, though wealth management firms typically employ enterprise agreements with enhanced data protections. WE Family Offices’ Michael Zeuner emphasized that advisors may struggle to distinguish between AI hallucinations and accurate insights when clients reference chatbot responses.
Wealth management leaders maintain that human advisors retain distinct value through relationship-based guidance, access to exclusive investment opportunities, and crisis management expertise. Pathstone’s Fleissig characterized AI as incapable of translating analysis into actionable advice requiring subjective judgment and personal relationships. Morgan Stanley’s Vince Lumia noted that while AI capabilities may seem sufficient during favorable market conditions, clients typically seek human guidance during periods of volatility and uncertainty. Firm leaders generally view AI as complementary rather than competitive, suggesting it may ultimately raise service standards across the industry.
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