On February 10, 2026, shares of financial services firms plummeted following the introduction of Altruist’s AI-powered tax planning tool, Hazel. LPL Financial saw a significant drop of 8.31% after an 11% decline during midday trading, while competitors Charles Schwab and Raymond James Financial fell by 7.42% and 8.75%, respectively, as concerns grew about potential disruptions caused by AI in their industry. Morgan Stanley also experienced a decrease of 2.4%. Hazel allows financial advisors to create personalized tax strategies rapidly by analyzing client documents, including 1040 forms, pay stubs, and account statements, utilizing advanced tax logic. The market fears that such AI technologies could revolutionize the financial services landscape, significantly impacting traditional operations and client relations. This trend highlights the increasing integration of AI tools in finance, prompting traders and firms to reassess their strategies in response to evolving technological advancements.
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