Financial advice is first and foremost a people business. Advisors guide clients through some of the most consequential moments in their lives – such as college education, home purchase and retirement – with a mixture of expertise and empathy.
That intimate, in-person interaction will always remain a crucial part of wealth management. But thanks to AI technology and large language models (LLMs), one aspect of interacting with people in this people business is changing on a fundamental level: lead generation.
Platforms like Aidentified, Catchlight, FINNY, TIFIN and WealthFeed are transforming the way advisors find new clients. Compared with human and traditional computing methods, these AI tools can more precisely identify and target a larger pool of prospective clients, from the mass affluent to the ultra-high net worth (UHNW), resulting in greater returns on investment (ROI) and faster conversion times.
The potential for wide scale disruption really can’t be overstated. Advisors still mostly rely on referrals for new business. For 2023, BlackRock and Ensemble estimated existing clients account for 57.6% of all leads, compared to just 1.3% from networking for business development.
In addition, using AI allows advisors to reach prospective clients without having to spend exorbitantly on traditional marketing techniques, like mailings, print and digital ads with low ROIs.
A new dawn is upon us. Advisors should react accordingly.
On Time And On Point
Experts say AI can help advisors identify clients that are mostly likely to sign up with them, saving both sides lots of time and effort. The technology can also spot events in people’s lives when they will most likely need an advisor, including selling a business, changing jobs or inheriting assets.
“We’re moving away from blanket, mass approaches,” said Chris Broussard, CMO at NewEdge Capital Group, parent of NewEdge Advisors and NewEdge Wealth.
“AI tools let us get more targeted with lead generation,” he said. “We can identify people at critical life moments — when they’re actually open to changing advisors — and get insights into their asset levels upfront. That means we can lead with the right offering from the start instead of wasting everyone’s time.”
Said Robert J. Sofia, Founder and CEO of Snappy Kraken: “AI transforms raw data into clear signals, showing who is most engaged and ready to act. Advisors no longer guess. They focus time on households with demonstrated intent, creating stronger pipelines and improving conversion rates.”
Prospective Clients Most Open To AI
Theoretically, AI should be able to effectively target all asset levels, from UHNW or high net worth (HNW) to mass affluent or “high earnings, not rich yet” (HENRY).
“AI levels the playing field across wealth tiers by adapting to communication preferences,” said Victoria Toli, President and Co-Founder of FINNY. “Retirees may receive handwritten notes, HENRYs or tech executives, a LinkedIn message. The real differentiator isn’t age or assets; it’s openness to cold outbound and digital engagement. Advisors can now personalize both audience and medium at scale.”
Susan Theder, Chief Marketing and Experience Officer of FMG, agrees. “All segments will benefit as AI platforms like ChatGPT evolve into operating systems that anticipate what users need and act, with approval, to help them achieve their goals,” Theder said. “For example, as more searches shift to large language models, we’re seeing significantly higher conversion rates than with traditional search.”
Derek Janis, CMO at AcquireUp, believes mass affluent and HENRY clients would be more open to AI outreach.
“AI will most effectively reach HENRY and mass-affluent clients, who are already using AI to compare options and vet advisors,” Janis said. “Advisors who understand will be found more often and trusted more deeply. Seminars then add what AI can’t: credibility, empathy, and human validation.”
Future Of Traditional Lead Generation
Experts say that advisors will still rely on traditional lead generation, but AI will gain significant usage.
“Referrals will persist but decline as credibility shifts from word-of-mouth to digital presence,” Toli said. “In the AI era, expertise and thought leadership online replace personal introductions. Advisors who embrace data-driven targeting and automation will dominate, while traditional methods become supplementary rather than central to new client acquisition.”
Theder offers a specific example of how AI changes the game. Normally, advisors relied on search engine optimization (SEO) to attract attention from prospective clients on Google or Bing looking for content on financial advice. But given the emergence of generative AI, advisors will switch their focus to Answer Engine Optimization (AEO), which means getting their content into the answers tools like ChatGPT and Gemini provide to user questions.
“Traditional SEO will give way to AEO,” Theder said. “Advisors will need to shift strategies, so their content is found and surfaced in LLM-driven search. You’ll need to continually refresh and optimize your content to stay visible as these AI-driven platforms evolve.”
Incumbent Versus Newcomer
What type of firm holds the advantage in this AI era: large incumbents or smaller newcomers?
Legacy firms of all kinds face the pitfalls of complacency and being too large and slow to make quick decisions and adapt to fast moving technologies like AI.
“Incumbency can be a constraint,” Toli said. “New entrants can build AI-native products from the ground up instead of retrofitting legacy systems, making speed, flexibility and innovation their core advantages.”
Sofia agrees.
“The risk is inertia and outdated systems that slow adoption,” he said. “Competitors with sharper execution can leapfrog. Ultimately, agility and integration speed will decide who wins.”
But AI is ultimately about scale, especially when it comes to data. And that’s where legacy firms hold the advantage, Theder said.
“Established firms have data, trust, and scale,” she said. “For example, AI can analyze years of client interactions to improve conversion and retention. Data becomes a competitive advantage when paired with AI that learns and acts faster than any team could.”
Incorporating The Human Touch With AI
The emergence of AI doesn’t mean humans won’t matter. Advisors may use AI to recruit clients, but they will still need human qualities to serve and retain them.
“AI can identify who to reach and when—but humans build trust, make the sale, and give advice,” said Michelle Winkles, CMO of Mission Wealth. “Clients come to Mission Wealth for authentic relationships, not automation. AI strengthens credibility by revealing intent and life stage, while our advisors bring empathy, care, and purpose. It’s technology that empowers authenticity, not replaces it.”
Said Broussard: “People hire advisors. They don’t hire a firm or ‘hire’ a portfolio. It’s that relationship between client and advisor that makes this industry work. So somewhere in the customer journey, there’s always going to be a human element. AI gets you to the door, but people open it.”
Lead Generation In Three Years
By 2028, experts say advisors will better determine when to use AI and when to task humans. The result, if done correctly, will be more efficiency and greater client satisfaction.
“As AI handles more marketing and service tasks, advisors will need to lean into what only humans can do, like creating meaningful experiences,” Theder said. “Personal calls, in-person events, and thoughtful outreach will matter. Clients will increasingly see the value of an advisor as helping them manage the emotional side of wealth.”
Winkles agrees.
“Lead generation will be predictive, personalized, and seamlessly connected,” she said. “AI will anticipate life events, suggest next actions, and integrate into advisor workflows. AI-driven systems will intelligently match clients and advisors by goals, values, and readiness—creating a better experience for all.”
Larry Roth is CEO of Wealth Solutions Report and Founder and Managing Partner of Ascentix Partners.
