Turning Time Saved into Better Conversations
Artificial intelligence (“AI”) is transforming the investment advisory profession by enhancing, rather than replacing, human judgment. The use of AI can support consultants in their goal to deliver more reliable, insightful and client‑focused outcomes. This technology is increasingly used to improve the accuracy, consistency and reliability of data that informs decision-making. As data quality improves, consultants can spend more time interpreting results and engaging with clients, all with the goal of improving client outcomes. In investment advisory, the purpose of AI is not automation for the sake of speed, but the pursuit of thoughtful decisions based on enhanced information.
Why AI Matters in Advisory Work Today
AI has rapidly transitioned from a conceptual idea to a practical part of advisory workflows. Research from McKinsey on finance functions shows that organizations are using AI to support forecasting, scenario analysis and decision making, especially when it reduces manual data entry and improves the quality and consistency of analytical inputs.1 These tools are not designed to replace decision‑makers, but rather to strengthen and enhance the information they rely on.
In advisory work, this technology has already reshaped how our consultants prepare for meetings, analyze portfolios and support investment decisions. Rather than spending time reconciling data across systems or rebuilding materials from scratch, consultants can start with more complete, consistently prepared inputs, allowing them to focus on interpretation, explanation and meaningful client conversations. For example, workflows built by AI provide our consultants detailed client activity summaries that recap and highlight key takeaways from recent engagements several weeks in advance, supporting the preparation and development of materials leading up to upcoming meetings. The benefit is simple: time. Not time saved just for efficiency, but time redirected toward preparation, explanation and client engagement. That is where we believe we can make a difference.
The Purpose of AI in an Advisory Practice
The best use of AI is not in making decisions. Its value lies in supporting investment consultants by improving how information is gathered, organized, validated and reviewed. When inputs are more accurate and consistent, consultants can focus on judgment rather than reconciliation.
In practice, AI can help consultants:
- Prepare more effectively for meetings
- Seek to minimize errors and data inconsistencies
- Highlight relevant insights earlier
- Spend more time explaining tradeoffs and implications
Scenario Analysis and Stress Testing
AI is increasingly used for scenario analysis and stress testing to broaden and improve existing frameworks, serving to supplement existing materials. Rather than relying on a single set of assumptions, AI‑driven scenario modeling allows consultants to test multiple “what‑if” outcomes.
This includes adjusting inputs such as:
- Spending rate calculations
- Capital market assumptions
- Timing of contributions or distributions
Enhancing and redesigning internal tools has become significantly more achievable. For example, we now utilize an automated dashboard that updates daily to track drift in client portfolio allocations, strengthening our internal risk management. Less than five years ago, this same process occurred monthly and required substantial manual effort.
Cash‑Flow Projections for Retirement Accounts
AI is also being applied to cash flow projections for retirement accounts, where timing and sustainability matter as much as returns. Rather than focusing solely on performance, consultants can use AI-supported analysis to understand how cash inflows and outflows behave under different conditions. OurWellness by Fiducient program brings this to life. The platform uses AI to design a personalized path for each participant based on their financial personality and current circumstances, prompting them to take meaningful action when necessary. This is complemented by a virtual financial coach that efficiently communicates relevant information to help close knowledge gaps.
These tools are used for decision support, not decision replacement. Human oversight and accountability remain essential, particularly when decisions affect long-term financial security.
Investment Research and Portfolio Monitoring
AI is also playing a growing role in research and portfolio oversight. Common use cases include summarizing research, expanding data sets, and improving comparative analysis across managers and strategies.
For investment research teams, AI can support:
- Initial screens and manager pairing analysis
- Summarizing manager commentary
- Improving consistency in comparisons
At Fiducient Advisors, AI created tools have assisted our research analysts in a number of ways. Importantly, AI can help organize large datasets to streamline tasks like initial manager universe screening, performance reviews or manager comparisons. Efficiency in these areas helps analysts determine where to focus their qualitative diligence efforts and helps them be better prepared for meetings with portfolio management teams; both of which enhance the process for identifying an investment manager’s competitive advantages. Our research team has a comprehensive AI and technology roadmap that will be refined and implemented in various phases over the next 12-18 months, aimed at increasing efficiency of research processes and internal access to various proprietary research databases.
However, one principle remains clear: final manager and portfolio evaluation and selection decisions must be determined by our experienced team. All managers added to our platform are subject to a robust approval process conducted by our research professionals.
Human Element Still Matters
AI can process data at scale, but it is unable to understand a client’s goals, mission or risk tolerance. Therefore, the optimal strategy involves a hybrid model. AI can enhance the quality of inputs, whereas consultants contribute interpretation, contextual understanding and accountability.
What AI Will Not Do:
- Operate without human oversight
- Make investment decisions independently
- Replace trust, empathy or fiduciary responsibility
Responsible use of AI technology requires governance, transparency and even professional skepticism.
The Outcome: More Time, Better Outcomes
When AI improves the accuracy and consistency of inputs, consultants can:
- Spend more time with clients
- Deliver more consistent preparation and follow‑up
- Focus on higher‑value conversations
The result is a more resilient, responsive and client‑centered advisory practice.
For a broader perspective on fiduciary responsibility and governance in the age of AI, explore a piece by Kevin O’Connell: The New Duty of Care: Navigating AI in Purpose-Driven Portfolios. You can also contact any of the professionals at Fiducient Advisors to continue the discussion.
1McKinsey & Company, How finance teams are putting AI to work today. AI in finance: Driving automation and business value | McKinsey
The information contained herein is confidential and the dissemination or distribution to any other person without the prior approval of Fiducient Advisors is strictly prohibited. Information has been obtained from sources believed to be reliable, though not independently verified. Any forecasts are hypothetical and represent future expectations and not actual return volatilities and correlations will differ from forecasts. This report does not represent a specific investment recommendation. The opinions and analysis expressed herein are based on Fiducient Advisor research and professional experience and are expressed as of the date of this report. Please consult with your advisor, attorney and accountant, as appropriate, regarding specific advice. Past performance does not indicate future performance and there is risk of loss.
