Hot Takes: AI Will Improve Advice Quality Not Scale Says Kitces
Hot Takes: AI Will Improve Advice Quality Not Scale Says Kitces
Publish Date: 2026-06-10 12:59:00
Source Domain: www.wealthmanagement.com
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Hot Takes Panel at Wealth Management EDGE: Financial professionals Jason Pereira and Michael Kitces, held another engaging session at the Wealth Management EDGE conference, akin to the popular TV show “Hot Ones,” discussing crucial industry topics while eating spicy wings.
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Critique of AI’s Role in Financial Planning: Michael Kitces expressed skepticism about the industry’s overemphasis on AI for increased efficiency and advisor scalability, arguing that it could end up worsening client care through diluted quality rather than better performance and outcomes.
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Expert Opinions on Tech Vendor Consolidation: Kitces didn’t expect a reduction in the number of tech vendors for advisors, predicting that the number could potentially grow to over 750 in the next five years, due to lower barriers to entry allowing more market entries by individual advisors.
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Challenges of Advisor-Created Tech Solutions: Pereira highlighted the pitfalls of advisors developing their own niche solutions, noting that while these can solve internal problems, they often lack the scalability and robustness required for widespread market viability.
