Vanguard Survey Reveals Advisors Use AI but Struggle to Focus on Client Relationships
A Vanguard survey shows that while financial advisors are increasingly adopting technologies like AI and portfolio management tools, many still lack the time needed to focus on client relationships. The study found that 72% of advisors wish they had more time for prospecting and deepening existing client connections. Although technology is seen as a potential enabler for efficiency gains, barriers such as compliance concerns and limited proficiency are hindering broader AI adoption. Advisors primarily use AI to assist with administrative tasks like drafting emails or taking meeting notes but have yet to fully automate these functions. Portfolio management tools—especially model portfolios—are also being adopted more widely, though nearly one-third of advisors still manage their own portfolios manually. The survey highlights that time saved through automation is most valuable when redirected toward client-focused activities such as behavioral coaching and financial planning. The findings underscore the importance of relationships in advisor growth, with referrals from existing clients identified as a key source for new business. Trust, personalization, and performance are cited by investors as factors influencing recommendations.
Topics: advisory efficiency AI adoption client relationships portfolio management tools