AI adoption among RIAs has accelerated rapidly in recent years. According to the reports, adoption has more than doubled since 2023, reaching 63% of firms. While many firms initially focused on administrative tasks, the next phase of adoption is centered on personalization.
As client expectations continue to evolve, RIAs are increasingly looking for ways to deliver recommendations that reflect each client's goals and preferences without increasing operational complexity.
How Is AI Changing Personalized Investment Advice?
Personalized advice has traditionally been difficult to scale. Every client has different goals, risk tolerance, and behavioral tendencies, yet advisors often need to deliver recommendations across hundreds of households.
Technology is helping close that gap. Rather than relying exclusively on traditional model portfolios, firms can incorporate a broader set of client information when developing recommendations. Portfolio allocations, planning strategies, and investment decisions can be adapted more efficiently to reflect individual circumstances.
Cerulli research shows that 70% of billion-dollar RIAs already use AI for notetaking and documentation, while 25% use it for client engagement tracking. These capabilities help advisors maintain a deeper understanding of clients across larger books of business.
Can RIAs Scale Personalized Advice?
One of the biggest challenges for growing firms is maintaining service quality as the client base expands.
Technology is increasingly being used to support proposal generation, portfolio reviews, and scenario analysis. Tasks that once required on average 45 minutes can now be completed in 10 minutes using AI-powered proposal tools.
This efficiency allows advisors to spend more time with clients while maintaining a high level of personalization. Industry surveys show that 59% of advisors expect AI to have a measurable impact on client relationships within the next year.
What Overlooked Areas Can Technology Improve?
Technology can also help advisors uncover value that may otherwise go unnoticed. In recent years, securities class action recovery has become an increasingly overlooked opportunity. Historically, firms had to identify eligible cases, match them to client holdings, file claims, and track payouts manually.
With the development of AI, platforms such as 11th.com automate this workflow and deposit proceeds directly to client accounts. Beyond additional value, advisors can spend more time on planning and client relationships, as administrative workload is reduced.
What Should RIAs Prioritize in 2026?
In 2026, RIAs should focus on using AI where it saves time and improves recommendations. Firms that can deliver more personalized advice without adding headcount will have a clear advantage as client demand continues to grow.
FAQ
How are RIAs using AI to personalize investment recommendations?
RIAs use AI to analyze client goals, risk tolerance, financial circumstances, and planning needs, helping advisors deliver more tailored recommendations at scale.
Can AI improve client segmentation for RIAs?
Yes, AI helps firms segment clients by life stage, financial complexity, and planning needs rather than relying solely on AUM.
How much time can AI save financial advisors?
AI-powered proposal tools can reduce preparation time from approximately 45 to 10 minutes, allowing advisors to spend more time with clients.
Does AI replace human financial advice?
No, AI supports research, planning, and personalization, but investment decisions and client relationships still rely on advisor oversight and judgment.
What hidden opportunities can AI help RIAs uncover?
AI can help identify securities class action recoveries, allowing advisors to recover eligible settlement proceeds for clients while reducing administrative work.
