Financial firms increasingly automate advisory services for clients with under $1 million in assets, reserving human advisors for high-net-worth individuals.
Financial institutions are reallocating human advisors to ultra-high-net-worth clients while automating portfolio management for those with $1 million or less in assets. The shift reflects cost efficiencies and AI’s growing capability to deliver near-private-banking quality for mass-affluent investors.
McKinsey & Co. senior partner Debasish Patnaik noted AI now provides standardized advice comparable to human advisors for clients with $100,000 to $1 million. Demand for customized, high-touch service for the wealthiest is reshaping hiring priorities in wealth management.
The trend underscores a bifurcation in advisory services, with firms prioritizing emotional and bespoke support for ultra-rich clients while relying on automation for broader markets.