Morningstar research shows that more advisors are turning to generative AI for greater efficiency, while clients demand deeper advice, context and emotional support.
Financial advisors rely on generative AI to manage their routine work, but remain cautious about how the technology fits into their role as relationship managers and behavioral coaches, according to Morningstar data.
Taken from its Voice of the Advisor 2025 studyThe survey of 527 U.S. advisors found that about two-thirds are already using generative AI in their firms, primarily for internal productivity tasks such as meeting summaries (26%), idea generation (25%), and client communications (25%). Nearly two-thirds, or 63 percent, said the biggest potential impact of technology is in improving the efficiency of customer communications, including summarizing notes and preparing to send emails.
At the same time, the feeling remains mixed. More and more advisors now expect generative AI to have a significant impact on the sector in 2025 compared to the previous year, with this share increasing from 44% to 57%. Yet nearly half, 46%, are unsure whether AI will ultimately help or harm their practice, and 21% view it as a threat. Among skeptics, the top concern is that clients may view AI as a substitute for human advice, cited by 38%.
The findings suggest that while technology is rapidly integrating into advisor workflows, many are still seeking to present it to clients as an enhancement rather than a replacement. The report argues that advisors who can clearly explain what AI does well – and where human judgment remains essential – will be better placed to maintain trust as the tools become more of a fixture in firms.
This human element seems to be at the heart of how investors perceive value. The Morningstar study indicates that investors who work with a full-time advisor report an overall satisfaction rate of 83%, compared to 77% for hybrid investors and 60% for self-directed investors. Those who work with advisors are more likely to report that they feel informed about their investments, can see how their strategy supports their long-term goals, and demonstrate better financial knowledge.
Between 2024 and 2025, advisors also reported measurable gains in the non-financial value they provide. The proportion saying they add value by increasing investor confidence in making informed decisions increased from 22% to 26%. Those who cited helping clients feel secure about their financial future increased from 34% to 36%, while emotional support during difficult times increased from 11% to 12%.
On the practice management side, advisors reported that only 52% of their workweek is currently spent on client-focused activities, such as identifying goals and customizing strategies, although 58% would like to spend more time on this work. This gap highlights why many are experimenting with automation tools: using AI to streamline documentation, research, and communication could free up additional hours for conversation planning and behavioral coaching.
The study also suggests that customer expectations are changing in ways that strengthen the case for technology and the human touch. While 41% of advisors said their overall expectations had remained stable over the past two years, 22% saw a significant change in service expectations, such as real-time communications, personalized recommendations and greater involvement in decisions.
