There’s no question that AI and finance are made for one another, but will AI replace financial advisors? Ensure you stay relevant with these uniquely human tactics.

I recently came across a Reddit conversation where a student working to become a CFP asked, “Will AI replace financial advisors?” They were concerned about spending years pursuing a career that may vanish in the not-too-distant future. The question prompted a long list of comments, with the majority more or less responding, Hell no!

Free Sample: Personally Branded Magazine

There’s no question that AI and finance are made for one another. From automating routine tasks to analyzing mountains of data in seconds, applications of AI in finance have proven to enhance efficiency and scalability in powerful ways.

But while it can crunch numbers, predict trends, and even spit out entire investment plans, finance AI, as the aforementioned group of commentators proudly proclaimed, will always fall short in the one area that matters most—making genuine human connections. As one user wrote: “The secret sauce of financial planning is psychology, empathy, and connection. Producing plans will be easy to accomplish with AI; nurturing them and guiding people as they navigate life, turmoil, and success won’t be.”

Of the three ingredients in this “secret sauce,” I’m most qualified to talk about the last one, making connections. Most of what I write (and what the company I work for sells) helps independent financial advisors and other entrepreneurs form and nurture authentic, long-lasting relationships with their clients and prospects. In this blog, I’ll share four ways you can outshine AI, particularly when it comes to building trusting bonds. This is where real-life, experienced professionals have an irreplaceable edge over robo-advisors and similar solutions in the AI fintech space and why no algorithm will replace their unique value.

1. Sharpen your communication skills

Truthfully, what’s more basic to making a meaningful connection with another human being than communication? A chatbot powered by machine learning in finance can be programmed to ask the right questions and say the right words, but we know—and, just as importantly, clients know—that there’s no interest, no concern, no anything behind them except a bunch of ones and zeros.

Your average Joe might believe that it’s unnecessary to study and practice the subject, assuming that because talking is something they’ve been doing essentially their whole life, they’re already effective communicators. These same people typically don’t understand how crucial what they say and how they say it is to building relationships, resolving conflicts, and influencing others—viewing it as secondary to technical ability or expertise.

But communication is a skill like any other, requiring intentional development and practice. In an industry increasingly adopting AI for financial services, you need to be well practiced in how you speak and listen to your clients, particularly when it comes to explaining complex concepts, understanding client needs, setting realistic expectations, providing reassurance during uncertainty, handling tough conversations, and maintaining compliance and professionalism.

There’s no shortage of resources that can help you refine your communication skills, but here are some techniques you can start practicing now:

• Engage in active listening. Focus fully on clients during conversations—close the door, turn off your phone, and disable email notifications. Do your best to avoid interrupting, waiting until they’ve finished speaking before asking questions. Paraphrase what they’ve said to confirm your understanding, and allow them to clarify. These behaviors demonstrate genuine interest and help ensure mutual understanding.
• Ask thoughtful, open-ended questions. Encourage clients to share more about their goals, concerns, and life circumstances by asking questions that go beyond surface-level details and require more than just a yes-or-no response. This shows clients that you care about their aspirations and concerns, helping them feel heard and valued.
• Simplify complex concepts. Avoid financial jargon, and instead use clear, simple language that clients can easily understand. I highly recommend using analogies to make abstract ideas more relatable.
• Adapt your style. Ask clients whether they prefer detailed explanations, concise summaries, or visual presentations, and tailor your approach accordingly.
• Seek feedback and reflect: During conversations, request feedback on how well you’re communicating; carefully observe their nonverbal behavior for signs of confusion or anxiety as well. Then adapt as needed.
• Follow up regularly. Your clients want to hear from you more often than you might think. After every meeting or significant financial event, send a personalized message or make a call to address any remaining questions or provide additional resources. This shows clients that you’re engaged, attentive, and committed to their understanding and sense of security.

2. Demonstrate empathy and emotional intelligence

As you well know, at its core, financial advising isn’t just about numbers—it’s about guiding clients through some of life’s most private, significant, emotional, and stressful situations and decisions, from planning for retirement to managing an inheritance to funding a child’s education to navigating a sudden job loss. These are where AI and finance part ways because they require more than analytical precision; they demand understanding, compassion, and the ability to communicate with sensitivity. These are qualities that artificial intelligence in finance can’t replicate, making them among the most valuable tools in an advisor’s skill set.

Emotional intelligence (sometimes referred to as emotional quotient or EQ) allows financial professionals to interpret the unspoken fears or desires their clients may have and provide solutions that go beyond satisfying basic needs. For instance, one may express anxiety about market volatility, but their true concern might be feeling unprepared for retirement. By recognizing and addressing such underlying emotions, advisors can build deeper trust and lend reassurance that an algorithm simply can’t offer.

In this way, empathy and emotional intelligence are more than intangible traits; they’re powerful differentiators that enable you to build authentic relationships, position yourself as a matchless partner in your clients’ financial journeys, and, according to several studies, improve sales.

3. Provide value beyond the transaction

Financial advisors can overlook the importance of connecting with clients outside of business, but maintaining enduring relationships requires that you find ways to extend your relevance and value beyond managing their portfolios. Still, with what little spare time you have, knowing how to do this consistently can be a challenge. That’s where our personally branded magazines can help.

These 48-page publications serve as highly effective marketing thanks to their engaging, entertaining, and compliance-friendly content that’s of interest to all members of the household. This includes articles, recipes, two customizable Tear Out Cards, and opportunities to include custom ads. Best of all, your photo and contact information appear in six key places, putting your brand front and center.

Every two months, we’ll automatically mail a new issue to your exclusive list of recipients, who will perceive it as a welcomed gift thanks to its unrivaled quality. This gets it through the door and onto coffee tables, where it will remain for weeks—readily available when clients need your phone number or email for repeat business and referrals.

Of special note is the letter on the Front Inside Cover that you can personalize down to the individual level at no additional cost.

Imagine a client’s reaction when they see a message congratulating them on an anniversary, birthday, promotion, or child’s graduation. (ChatGPT can help you write such a missive, but your client will know the thought comes from you.) Or use this space to provide everyone on your list with your thoughts on the economy, reminders about important tax dates, education on a topic. You can also wish them a happy holiday or extend an invitation to a client event or seminar—the possibilities are endless and the impact long-lasting!

4. Reach out to help the next generation

There’s currently an extreme deficiency of financial literacy among young adults, which you can work to improve both for the benefit of those individuals and your business. For one, you can freely offer to educate your clients’ children, demonstrating concern for their sons’ and daughters’ welfare and future security and earning you their gratitude. This is also a means to form nascent bonds with the next generation so that when they are ready to hire an advisor, you become their obvious choice.

As for those older members of Gen Z who are just graduating or starting their first careers, despite their comfort with the burgeoning world of AI for personal finance—including robo-advisors, cryptocurrency, investing, and online trading—they’re not going to make big financial decisions without advice. And for better or worse, many are getting that advice from social media, especially TikTok (34%) and YouTube (33%).

However, as Susannah Snider, CFP, notes in an article for SmartAsset, there are very few advisors who use these platforms either because they don’t feel comfortable or because compliance forbids it. “But,” she says, “that doesn’t mean they can’t take away lessons from this shift to digital video financial advice and improve their marketing strategies based on those trends.”

The reason financial advisors should find ways to incorporate video into their marketing aligns precisely with our purpose here. In the same article, Samantha Russell, chief evangelist at FMG Suite, explains that “when someone sees your face and hears your voice on video, it helps build a connection and rapport that you don’t get from written communications.”

Kerri Feazell, a video strategist also interviewed for SmartAsset, encourages financial advisors and RIAs who manage their compliance to create videos and embed them in emails or upload them to YouTube.

If your audience is on TikTok or Instagram though, I suggest posting videos not as a professional offering financial advice but as an individual with a personal life who also happens to be a financial advisor. Why? Because people want to do business with those they know, like, and trust, and by routinely sharing slices of your life, you’ll allow potential clients to see you as more than an account manager and as someone they can relate to.

Final thoughts

All that being said, there’s no point in throwing the proverbial baby out with the bathwater.

Advisors don’t have to compete with finance AI—rather, they can leverage it to enhance their expertise and deliver greater value to their clients. The key is to treat it as a complement to human insight, not a substitute for it. Through combining the best of both worlds, you can free up time to focus on building connections, providing strategic guidance, and offering a level of service that is efficient, personalized, and uniquely human.

So while AI has undoubtedly transformed the financial services industry, if a budding CFA asks, “Will AI replace financial advisors?” you can assure them that it will never be able to compare with what living and breathing professionals bring to the table. By perfecting their communication skills, demonstrating empathy, and offering consistent value and education, financial advisors can build the trust, loyalty, and long-lasting relationships that clients desire—something that artificial intelligence simply cannot achieve.