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How Gen Z and Millennial advisors balance AI risks with tech growth

The financial advisory industry is undergoing a transformation. Shifting demographics, rapid technological advances, and economic volatility are reshaping how advisors work and who they serve.

By Betterment Editors

Published Sep. 04, 2025

How Gen Z and Millennial advisors balance AI risks with tech growth Sep 4, 2025 10:15:00 AM The financial advisory industry is undergoing a transformation. Shifting demographics, rapid technological advances, and economic volatility are reshaping how advisors work and who they serve. With a new generation of RIAs entering the profession and younger clients making up a growing share of the market, new perspectives are emerging—on the economy, on technology, and on the very role advisors play in managing investments. Perhaps the most indelible shift of all, is the accelerating pace of AI, requiring advisors to revise how they deliver value to the next generation. In the second installment of our Advisor Survey, Betterment Advisor Solutions spoke to 500 independent RIAs, to find out how financial advisors are responding to the shifting financial planning landscape. Not surprisingly, many advisors (53%) report using AI to stay current with industry updates. And that’s not all, adoption of AI tools has climbed 10% since this time last year. However, the majority of advisors (65%) say they are worried about clients turning to generative AI platforms for financial advice. While AI is already making advisors’ lives easier, it also presents new challenges around client trust, accuracy, and the role advisors play in managing their clients’ wealth. How advisors are using AI As financial advisors wrestle with the paradox of AI, there are some areas we’re seeing Gen Z/Millennials and Gen X/Baby Boomers agree on: AI over social: 53% of advisors now use AI to stay current with industry updates, surpassing social media (48% in 2025, down from 59% in 2024). Positive impact: Overall, advisors are mostly positive about AI's impact, with more Gen Z/Millennials being "very positive" (45%) than Gen X/Baby Boomers (37%). Client misuse: While advisors are finding important use cases for AI in their own work, they’re concerned about clients using AI for financial advice (65%). Their top concerns are the lack of regulation and oversight in Generative AI providing financial advice, increasing the likelihood that clients will misinterpret or receive inaccurate financial advice from Generative AI platforms. But from there, key differences divide younger and older generations. For instance, Gen Z/Millennials tend to lean into AI for administrative tasks (like note taking and meeting recaps) as well as fraud detection; whereas Gen X/Baby Boomers use it more for client communication and portfolio management. The generational divide in AI adoption reveals that the technology is being shaped by client needs, not necessarily by advisor preferences. – Dan Egan, VP of Behavioral Finance and Investing at Betterment As digital natives, younger financial advisors have deeper concerns about the omnipresence of AI and so-called “ChatGPT financial advisors.” Although they might be more cautious about how AI is used, our survey shows that these advisors are perhaps better equipped to manage the financial planning needs of the Gen Z/ Millennials clients, who are looking for a seamless, modern way to manage their money. The way advisors balance caution with innovation will reshape the financial planning journey. To dive deeper into how RIAs across generations are viewing AI, technology, and shifting client expectations, download our latest survey below.

With a new generation of RIAs entering the profession and younger clients making up a growing share of the market, new perspectives are emerging—on the economy, on technology, and on the very role advisors play in managing investments. Perhaps the most indelible shift of all, is the accelerating pace of AI, requiring advisors to revise how they deliver value to the next generation.

In the second installment of our Advisor Survey, Betterment Advisor Solutions spoke to 500 independent RIAs, to find out how financial advisors are responding to the shifting financial planning landscape. Not surprisingly, many advisors (53%) report using AI to stay current with industry updates. And that’s not all, adoption of AI tools has climbed 10% since this time last year.

However, the majority of advisors (65%) say they are worried about clients turning to generative AI platforms for financial advice.

While AI is already making advisors’ lives easier, it also presents new challenges around client trust, accuracy, and the role advisors play in managing their clients’ wealth.

How advisors are using AI

As financial advisors wrestle with the paradox of AI, there are some areas we’re seeing Gen Z/Millennials and Gen X/Baby Boomers agree on:

Advisor inline

AI over social: 53% of advisors now use AI to stay current with industry updates, surpassing social media (48% in 2025, down from 59% in 2024).
Positive impact: Overall, advisors are mostly positive about AI's impact, with more Gen Z/Millennials being "very positive" (45%) than Gen X/Baby Boomers (37%).
Client misuse: While advisors are finding important use cases for AI in their own work, they’re concerned about clients using AI for financial advice (65%). Their top concerns are the lack of regulation and oversight in Generative AI providing financial advice, increasing the likelihood that clients will misinterpret or receive inaccurate financial advice from Generative AI platforms.

But from there, key differences divide younger and older generations. For instance, Gen Z/Millennials tend to lean into AI for administrative tasks (like note taking and meeting recaps) as well as fraud detection; whereas Gen X/Baby Boomers use it more for client communication and portfolio management.

The generational divide in AI adoption reveals that the technology is being shaped by client needs, not necessarily by advisor preferences. – Dan Egan, VP of Behavioral Finance and Investing at Betterment

As digital natives, younger financial advisors have deeper concerns about the omnipresence of AI and so-called “ChatGPT financial advisors.” Although they might be more cautious about how AI is used, our survey shows that these advisors are perhaps better equipped to manage the financial planning needs of the Gen Z/ Millennials clients, who are looking for a seamless, modern way to manage their money.

The way advisors balance caution with innovation will reshape the financial planning journey. To dive deeper into how RIAs across generations are viewing AI, technology, and shifting client expectations, download our latest survey below.