The fastest-growing financial advisors see industry and generational change as an opportunity. That's why they're embracing innovative tools and technology as a way to catalyze their growth and solidify their position in a market that is rapidly evolving, according to Betterment's new Advisor Survey 2024. In fact, 80% of advisors said they were currently using AI at their firms, and of the 20% who aren't, nearly two-thirds said they had plans to integrate AI at their firms.

Betterment released the results of the new survey of 500 independent U.S. advisors with $10 million to $250 million in assets under management, which found:

• Nearly three quarters of advisors surveyed are millennials, which aligns with the growing needs of millennial investors who are quickly becoming high-value clients.
• Tech allows advisors to offer better client experiences. 43% of advisors said that with more time, they would spend more hours on financial planning and meeting with current clients.
• Retirement is critical, not optional, business: more than 80% of advisors are managing 401(k) plans, and of those who aren't, the majority intend to.

The top use for AI among advisors, according to the survey, were:

• 56%     assisting with client service tasks
• 53%     creating personalized client communications
• 52%     assisting with marketing efforts

However, the top uses for AI varied by generation, with Gen X and boomer advisors saying they were more likely to use tools like ChatGPT for creating personalized client communications.