Have you ever wondered how technology is reshaping the way we manage our finances? With the latest technological advancements, managing your money has become easier and more accessible. Opening a new bank account or checking your credit score is now as simple as ordering a pizza. This technological transformation also extends to financial consulting, where robo-advisors and AI-driven insights reshape financial planning, investing, budgeting, and more. For information about the top AI stocks of 2025, read our guide.

What do these tech innovations mean for the future of financial advising? Let's examine how these advancements are changing the advisory industry and what this means for achieving your financial goals.

Enhanced Accessibility and Communication

In the past, you had to book appointments far in advance to see your financial advisor. However, digital platforms and mobile apps have changed how we engage with financial professionals. Now, you can manage your investment portfolio, ask questions, and receive advice all from your smartphone. This change makes financial planning services more accessible and ensures you receive timely updates and advice based on real-time data.

In the US, 76% of investors consider these on-demand, personalized interactions the norm. To meet expectations, many advisors and firms are enhancing their digital channels to build trust and provide more personalization, making it easier for investors to achieve their financial goals.

The Rise of Robo-Advisors and AI

Robo-advisors offer automated, fully interactive internet-based investment management services, making financial advice accessible to a broader audience. Data from Statista projects that assets under management (AUM) in the robo-advisors market will reach $1.8 trillion in 2024 and top $2.3 trillion by 2028, so it's clear this tech is here to stay.

Robo-advisors use algorithms to provide personalized investment advice and manage your portfolio, often at a fraction of the cost of traditional financial advisors.

But it’s not just about cutting costs. AI is being integrated into financial advising to analyze vast amounts of data, helping advisors offer better risk assessments and personalized strategies. Think of having a financial planner who can process data around the clock and deliver tailored insights specific to your needs.

Efficiency & Accessibility

Technological advancements and automation have lowered operational costs for most traditional financial advisors. This improves advisors' efficiency and allows them to take on more clients, making services accessible to a wider audience, and not just high net worth individuals.

Data Analytics and Big Data

Big data analytics is changing the game for financial advisors. Advisors can better understand client behavior and market trends by quickly analyzing large datasets, leading to smarter investment strategies and stronger client engagement. This could translate into better financial outcomes for you.

Interestingly, a Deloitte survey found that 51% of financial advisors are considering switching firms to gain access to better tech tools. Technology is making a huge impact in the financial advising world, helping advisors work more efficiently and effectively for their clients.

Personalized Financial Plans with AI

AI isn’t just for managing investments. It’s also transforming customer service in the financial industry. AI-driven tools can segment customers automatically, enabling targeted marketing and improved client interaction. Imagine receiving personalized financial advice, budgeting tools, and investment guidance tailored to your unique situation and preferences. AI makes this possible, providing deeper personalization than ever before. No more one-size-fits-most investment strategies.

Improved Risk Management

AI also enhances risk management in financial services. With cybersecurity being a top concern, AI-based solutions offer advanced threat monitoring, allowing firms to contain threats as they occur and better secure sensitive client data. 

Additionally, AI helps with financial risk management by offering real-time data analysis, informed market predictions, and automated portfolio rebalancing. This can help you achieve your investment goals while maintaining your risk tolerance. 

AI can also help advisors work with you to test out the potential outcomes of changing your investment strategy, allowing you to preview best-case and worst-case scenarios before you make the switch. 

The Human Touch

Despite all these technological advancements, not all financial advisors are being replaced by robots. A considerable number of individuals still prefer human interaction in financial planning matters. Based on Investopedia's Affluent Millennial Investing Survey findings, while 20% of affluent millennials use robo-advisors, most still prefer human financial advisors.

A hybrid advisory model, which combines human expertise with digital tools, offers the best of both worlds. This model utilizes technology's efficiency and adaptability while maintaining human advisors' personalized and empathetic approach.

In a hybrid model, you can benefit from automated investment strategies and real-time support from AI-powered tools while having access to human advisors for more complex financial planning needs. This combination ensures you receive comprehensive, tailored advice addressing your immediate and long-term financial goals.

Finding the Right Advisor With AI in Mind

The key is finding the right balance. Technology can handle data crunching and routine tasks, freeing up human advisors to offer the personalized guidance and emotional support only a person can provide.

So, what does all this mean for you? When choosing a financial advisor, think about how they use technology to enhance their service.

• Do they use the latest tools to provide a better service?

• Are they open about their fee structure and how it relates to the resources they offer?

• Do they offer a personalized approach to your financial planning needs?

• Are they over-reliant on technology to the point of lacking an empathetic touch?

The right financial advisor knows how to leverage technology to enhance efficiency without losing the human touch. They use digital tools to streamline services but never rely solely on technology—ensuring that personalized, thoughtful advice remains at the heart of your financial planning experience.

The Aligned Perspective: How Technology is Changing Financial Advisory

The future of financial advising looks bright, with technology making financial planning easier and more accessible. Whether you're approaching retirement or just starting to think about your financial future, AI tools and other technological advancements can help you easily reach your goals. 

Good financial advisors who adopt new technology can manage your investments efficiently while offering personalized guidance and assisting with complex financial decisions. Look for an advisor who embraces these tech-driven changes and gives you the confidence to achieve your financial goals.

Simple, strategic, and designed to give you clarity as you grow.