Independent RIAs are increasingly leveraging AI and other technology innovations to thrive amid industry shifts and meet the demands of digital-first clients, especially younger investors who prefer streamlined, tech-driven experiences, according to the findings of the 2025 Advisor Survey by Betterment Advisor Solutions, released on Thursday.
The Great Wealth Transfer is “reshaping” wealth management, according to Betterment.
In response, advisors need to meet the expectations of millennials and Gen Z clients by adopting innovative technology while also managing AI-related risks, the firm said in a news release announcing the survey’s findings.
Digital Experience For Younger Generations
“Younger investors desire a more digital experience and prefer to spend less time managing their investments,” Sarah Levy, CEO of Betterment, said in the release.
“Advisors who embrace new technology will be the ones to win tomorrow’s clients.” – Sarah Levy, CEO, Betterment
“Our survey identifies how modern advisors can utilize this information to better serve them,” according to Levy. “Advisors who embrace new technology will be the ones to win tomorrow’s clients, and we are proud to be able to empower them to adapt to shifting expectations.”
Betterment said responses to its survey showed that digital-first clients want less hands-on interaction, adding, “Younger investors prefer streamlined, tech-driven experiences, making AI-powered advising a key draw for the next wave of clients.”
“Gen Z and Millennial advisors are more readily embracing investments, platforms, and approaches that meet the expectations of their digitally native clientele,” Devon Klumb, Head of Sales at Betterment Advisor Solutions, said in the report.
He added, “This underscores a challenge for the entire industry: Firms must ensure they have a model that serves the planning needs of established generations while simultaneously embracing the technology and investment strategies demanded by younger clients.”
“Firms must ensure they have a model that serves the planning needs of established generations while simultaneously embracing the technology and investment strategies demanded by younger clients.” – Devon Klumb, Head of Sales, Betterment
RIAs Embracing AI
Meanwhile, across all ages, RIAs are increasingly embracing AI, the survey found.
While Gen Z and millennial advisors are using AI to simplify administrative tasks, older advisors are using it to enhance client communications, Betterment said.
The survey found that 53% of advisors are using AI to stay current with industry updates, compared with the 48% of advisors using social media to do that.
Despite technology tending to be embraced quicker by young advisors and their clients than older advisors, younger advisors are also more concerned about “ChatGPT financial advisors” and clients’ growing reliance on generative AI.
Overall, 65% of advisors surveyed said they were concerned about clients using AI for financial advice, according to Betterment.
“The generational divide in AI adoption reveals that the technology is being shaped by client needs, not necessarily by advisor preferences,” Dan Egan, Vice President of Behavioral Finance and Investing at Betterment, said in the report.
“The generational divide in AI adoption reveals that the technology is being shaped by client needs, not necessarily by advisor preferences.” – Dan Egan, Vice President of Behavioral Finance and Investing, Betterment
Macroeconomics And Geopolitics
Another key finding of the survey was that macroeconomics and geopolitics concern Gen Z and millennial advisors less than older advisors, Betterment said.
For example, although 41% of Gen Z and millennial advisors cited market volatility as a top concern, 51% of their Gen X and boomer counterparts did so, according to Betterment.
Betterment said it surveyed advisors at 500 independent RIAs that each manage between $10 million and $250 million in assets in this second year of the survey.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
