On Tuesday, wealth management stocks—including Charles Schwab, Raymond James, LPL, and Stifel—experienced a selloff, each dropping by 7-8%. This decline was linked to Altruist’s introduction of AI-driven tax planning within its Hazel platform, raising concerns over AI’s potential to disrupt financial advisory services. Morgan Stanley’s Jed Finn addressed these fears during the UBS 2026 Financial Services Conference, highlighting the importance of advisor-client relationships that will endure beyond emerging technologies. He emphasized that while AI, like their Roth Conversion Analyst tool, enhances advisors’ efficiency, it will not replace them. The industry remains inherently relationship-driven, with trust and personalized guidance central to successful client interactions. Analysts from Citizens Bank agreed, noting the gradual integration of AI technologies aimed at improving productivity and client outcomes, rather than a sudden disruption. The consensus indicates AI will streamline operations while reinforcing the advisor’s crucial role in wealth management.
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