Morningstar research shows more advisors turning to generative AI for efficiency while clients demand deeper guidance, context, and emotional support.
Financial advisors are leaning into generative AI to handle routine work but remain cautious about how the technology fits alongside their role as relationship managers and behavioral coaches, according to data from Morningstar.
Drawn from its 2025 Voice of the Advisor study, the survey of 527 US advisors found that about two-thirds are already using generative AI in their practice, primarily for internal productivity tasks such as meeting summaries (26%), idea generation (25%), and client communications (25%). Nearly two-thirds, or 63%, said the technology’s biggest potential impact lies in making client communications more efficient, including summarizing notes and preparing email outreach.
At the same time, sentiment remains mixed. More advisors now expect generative AI to have a non-trivial impact on the industry in 2025 than they did a year earlier, with that share rising to 57% from 44%. Yet almost half, 46%, are unsure whether AI will ultimately help or hurt their practice, and 21% view it as a threat. Among skeptics, the leading concern is that clients may see AI as a replacement for human advice, cited by 38%.
The findings suggest that while the technology is quickly becoming embedded in advisors’ workflows, many are still working out how to present it to clients as an enhancement rather than a substitute. The report argues that advisors who can clearly explain what AI does well – and where human judgment is still essential – will be better positioned to maintain trust as the tools become more of a fixture across practices.
That human element appears to be central to how investors perceive value. Morningstar’s research notes that investors who work with an advisor full-time report an 83% overall satisfaction rate, compared with 77% for hybrid investors and 60% for self-directed investors. Those working with advisors are more likely to say they feel informed about their investments, can see how their strategy supports long-term goals, and demonstrate stronger financial literacy.
Between 2024 and 2025, advisors also reported measurable gains in the non-financial value they provide. The share who said they add value by boosting investors’ confidence in making informed decisions climbed from 22% to 26%. Those who cited helping clients feel secure about their financial future rose from 34% to 36%, while emotional support during hard times ticked up from 11% to 12%.
On the practice-management side, advisors said only 52% of their workweek is currently devoted to client-focused activities such as identifying goals and customizing strategies, even though 58% would like to spend more time on that work. That gap underscores why many are experimenting with automation tools: using AI to streamline documentation, research and communication could free up additional hours for planning conversations and behavioral coaching.
The study also suggests client expectations are changing in ways that reinforce the case for both technology and human touch. While 41% of advisors said overall expectations have been flat in the past two years, 22% saw significant change in service expectations such as real-time communications, personalized recommendations, and greater involvement in decisions.
