Key Takeaways

• Artificial intelligence is becoming a central tool in wealth management for portfolio analysis, risk detection, and decision support.
• AI helps automate routine client service tasks, freeing advisors to focus on higher-value and more personalized work.
• Digital platforms and cloud-based tools are now expected by younger clients who want real-time access to financial information.
• Despite its power, AI cannot replace human judgment, empathy, and nuanced decision-making in investment management.
• Firms that resist adopting modern technology risk losing clients who expect advanced digital experiences and analytics.

Aurora, Illinois based professional Michael A. Bozett brings a background in business administration, personal investing, and client focused sales to discussions surrounding modern wealth management. With experience spanning retail operations, logistics, hospitality, and financial coursework, his career reflects consistent engagement with data driven decision making and customer education. Through his role at Floor & Decor, he regularly explains complex product details, manages client relationships, and collaborates across departments, responsibilities that parallel advisory communication in financial services. Academic training from North Central College and Western Michigan University supports his understanding of finance, marketing, and analytics. Certifications in content marketing and Bloomberg Market Concepts further reinforce his exposure to market analysis and digital tools. These experiences provide relevant context for examining how artificial intelligence, automation, and emerging technologies are reshaping wealth management practices.

AI and Other Technology Trends Influencing Wealth Management

Artificial intelligence (AI) has driven many of the wealth management trends that have shaped the industry in 2025 and will continue to influence the field for the next several years. One study found that 9 out of 10 financial advisors maintain a positive opinion of AI. In contrast, a London Stock Exchange Group and ThoughtLab survey found that 62 percent of wealth management firms plan to transform their operations using various types of AI significantly.

AI plays many unique roles within the wealth management profession. AI algorithms provide financial planners, wealth managers, and other professionals with insights into market trends and contribute to portfolio optimization strategies. Wealth managers can design AI-driven algorithms to identify potential risks, allowing financial advisors to make more informed decisions for themselves and their clients.

AI risk mitigation takes many forms. In addition to cautioning wealth managers against high-risk investments in real time, AI systems can flag unusual account activity and anomalous investment behavior.

Wealth managers can harness the power of AI to automate and improve client services, with popular examples including AI-powered chatbots and virtual assistants. These technologies not only improve client satisfaction but also free up manpower for more critical and nuanced operations that managers would otherwise need to dedicate to answering basic inquiries.

Similarly, AI can support wealth managers in anticipating pressing client needs, particularly by assessing client behavior and analyzing large datasets. Specific examples of AI insights include anticipating a client’s need to prepare for an impending retirement, enabling financial advisors to take a proactive approach to offering retirement planning services.

Younger millennials and Gen Z clients are especially interested in a potential wealth manager’s automated and digitized offerings. Failing to deliver a seamless digital wealth management experience can leave investors behind their peers. In addition to AI, younger clients expect robust cloud platforms that provide immediate access to their financial details and advisor insights.

Despite these and other AI benefits, both wealth managers and their clients must understand that AI has limitations within the financial management industry. Human intervention is often necessary when weighing the pros and cons of potential investments and related portfolio decisions.

Furthermore, wealth managers must be wary of problematic algorithms rooted in biased data, or else they risk making decisions based on inaccurate AI recommendations. Regardless of the quality of the data powering a financial professional’s AI tools, no algorithm can replace the nuances of human intellect, emotion, empathy, and subjective judgment, all of which are critical to successful portfolio investing and management.

AI is not the only technology influencing wealth management trends in 2025 and beyond. Client expectations of financial professionals have risen over the years, and digitization is an important pathway to meeting them. Seamless digital experiences, such as streamlined client onboarding and real-time portfolio reviews, are only a few examples of digitized wealth management services most clients view as standard offerings.

Resisting wealth management technology trends will only set wealth managers up for failure. Data suggests that 25 percent of clients would consider leaving a wealth manager who does not modernize and adapt to new technologies. Meanwhile, 66 percent of investors report that access to advanced analytics and digital portfolio visualization was key to developing confidence in their financial advisory team.

FAQs

How is AI used in wealth management?

AI is used to analyze market data, optimize portfolios, detect risks, monitor unusual activity, and support advisory decision-making.

Can AI replace human financial advisors?

No, AI supports advisors with data and automation, but human judgment, empathy, and experience remain essential for complex decisions.

How does AI improve client service?

AI-powered chatbots, virtual assistants, and automation tools handle routine requests and allow advisors to focus on higher-value interactions.

Why do younger investors expect digital wealth management tools?

Millennials and Gen Z prefer seamless digital access, real-time data, and cloud-based platforms that provide instant visibility into their finances.

What risks come with using AI in investing?

AI systems can reflect biased or flawed data, making oversight and human review necessary to avoid poor or misleading recommendations.

About Michael A. Bozett

Michael A. Bozett is a sales specialist based in Aurora, Illinois with academic training in business administration from North Central College and additional studies at Western Michigan University. His professional experience includes retail sales, logistics coordination, hospitality, and customer service focused roles. At Floor & Decor, he works with homeowners, contractors, and internal teams while applying finance and marketing principles. He holds certifications in content marketing and Bloomberg Market Concepts and has participated in strategic planning projects and academic case presentations.