Artificial intelligence is rapidly transforming wealth management, but the technology will not displace the essential role of human advisors, according to Racquel Oden, U.S. head of wealth, premier and global private banking at HSBC. Speaking at the opening keynote of the Women Advisor Summit in New York City on Nov. 5, Oden emphasized that the demand for personalized guidance will keep advisors central to the industry.
“AI won’t replace advisors,” Oden said. “There’s a reason why – the level of advice needed.” She stressed that clients seek “true, one-on-one” advice, a need that algorithms cannot fully satisfy. Oden also pointed to a significant advice gap in the U.S., citing McKinsey & Co. data that about 53 million Americans currently work with financial advisors, a figure projected to reach 75 million by 2030. “So the reality is there is demand for advice,” she added.
While acknowledging AI’s limitations, Oden expressed optimism about its potential to enhance productivity. “I am excited about what AI will do for us, because it will make us more productive,” she said, explaining that efficiency gains will allow advisors to spend more time with clients and focus on one-on-one interactions. However, she cautioned that AI lacks emotional intelligence, and it will take generations of development to acquire that capability.
Recent research from Morningstar shows that 80% of advisors now use AI in some form, up from 67% last year. The same study found that 48% of advisors say AI has significantly or moderately improved their efficiency, up from 36% in the prior year. These figures underscore the rapid integration of AI into advisory practices, even as the human element remains irreplaceable.
The Women Advisor Summit, held at 583 Park Avenue on Manhattan's Upper East Side, featured more than 20 speakers across over 10 sessions. AI was a recurring theme, with panelists discussing its implications for the industry. Lisa Salvi, head of business consulting & education at Schwab Advisor Services, urged more women advisors to engage with AI. “Nothing at all can replace trying it,” she said. “I have been hosting events, we have done roundtables, we have done AI summits. I would love to see more women show up for these events.”
Denise Milano Sprung, chief marketing officer at Mitlin Financial, warned that firms lagging in AI adoption risk losing advisors to more tech-forward competitors. “It’s moving at such a quick pace,” she said, adding that advisors at AI-laggard firms “may be time to look for a new job.” This sentiment aligns with research from Schwab Advisor Services released in January, which found that 63% of independent RIAs are using AI in some capacity, more than doubling from 2023.
Stacy Francis, president and CEO of Francis Financial, highlighted the practical benefits of AI for advisors. “Everyone is using AI to get better,” she said. Francis recounted using an AI notetaker called Jump to review a client meeting that didn’t go well. “I was like oh my god, you’re right!” she said, referring to the tool’s feedback. “I feel like there’s a lot of really good pieces that we can use.”
The summit concluded with the Women to Watch Awards, honoring influential women in wealth management, with Prudential Wealth Advisors as headline partner. The event underscored the industry’s growing reliance on AI while reaffirming the enduring value of human judgment and empathy in advisor-client relationships. As other wealth management leaders have noted, AI enhances efficiency but cannot replace the trust that underpins client bonds.
