Kitces: AI Gives Advisers Depth and Quality, Rather Than Efficiency

Financial advisers who expect artificial intelligence to dramatically increase their client capacity may be focusing on the wrong outcome, according to financial planner and industry commentator Michael Kitces. In his opinion, AI is more likely to deepen client relationships and expand planning engagements than to generate massive efficiency gains.

Speaking during a recent Q&A session at the eMoney Advisor 2026 Summit, Kitces challenged a common industry narrative that AI will allow advisers to serve hundreds of clients by automating planning and administrative work. Instead, he said the technology’s greatest impact will be improving the effectiveness of advice, often requiring more adviser time—and higher compensation—rather than less.

“What I see is a lot of tools that might save us 30 minutes or an hour in plan prep and analysis, and then create one, two, three more hours of additional conversations and implementation actions with clients,” Kitces said.

Kitces suggested the technology could support higher-value engagements and potentially justify higher prices as advisers provide more comprehensive planning services, leading to “fee expansion” rather than fee compression.

“That’s better advice, that strengthens our value proposition, that strengthens our pricing,” he said.

Another trend Kitces highlighted is clients’ increasing use of AI tools such as ChatGPT to review financial plans and formulate follow-up questions. Although some advisers may view this skeptically, Kitces said he views the development positively because it encourages greater client engagement.

“Some clients … didn’t always ask the questions if they weren’t comfortable and they just kind of disengaged from the planning process,” Kitces said. “Now, when they’re confused and they’re not up to speed, … they ask ChatGPT and … come back ready for a more engaged conversation. They feel more fluent in the topic.”

The result, he said, is often more a productive discussion rather than a challenge to the adviser’s expertise.

What AI cannot automate, according to Kitces, are the conversations at the heart of financial advice. As clients become more informed and engaged, advisers may spend additional time discussing goals, trade–offs and implementation strategies.

Looking at broader industry trends, Kitces argued that previous waves of technology have generally reduced adviser capacity rather than increased it because firms continuously expand the services they provide. He recalled that, decades ago, advisers often managed hundreds of client relationships, while many modern advisers serve closer to 100 households, despite having far more sophisticated technology.

“We go deeper with clients today,” he said, arguing that technology has historically enabled advisers to deliver more comprehensive service instead of simply scaling client loads.

Five years from now, Kitces expects AI to further that trend. He said advisers will likely spend less time on data entry and routine administrative tasks—but more time helping clients navigate increasingly personalized financial planning decisions. He suggested that the firms benefiting most, will be those using AI to enhance human relationships rather than replace them.

“And if you make no improvements, eventually you will fall behind … but you’ve got time to be thoughtful about picking the technology,” Kitces said. “You have time to make thoughtful decisions about good tech that really aligns to how you want to serve your clients.”