Four parts of financial planning AI can’t replace

Financial advisors say artificial intelligence has cut time for research and meeting preparation from hours to minutes, but it cannot replace four core planning functions: defining long-term goals, calming client anxieties, creating holistic plans and sustaining trust over decades.

A 2025 Fidelity report found nearly 70% of wealth management firms use AI and about 30% apply it for specific tasks. Fidelity reported firms cited gains in efficiency, decision making and customer experience, and estimated that if advisors used time saved by generative AI to spend five more hours a week with clients, revenue could rise about 27%. A TD Bank survey found 18% of respondents would trust AI platforms to make financial recommendations on their own.

Defining long-term goals often starts with open-ended conversations about values and life purpose. Ohan Kayikchyan, founder of Alohana Financial and a graduate of the Kinder Institute of Financial Life Planning, said AI cannot help people discover how they want to spend their finite time. He added that clients sometimes realize they have been living someone else’s definition of success and require trust and empathy to reframe objectives.

Advisors also act as emotional anchors during market stress. Zachary Bachner, a planner at Summit Financial Consulting in Michigan, noted recent market pullbacks linked to tariffs and geopolitical events have left clients nervous. Forest Dutton, owner of Brightworks Financial Planning in South Carolina, observed advisors can read body language and provide steady presence in ways technology cannot. Industry professionals warn against treating AI as a substitute for mental health care.

Creating a holistic plan can require judgment beyond data inputs. Sam Mockford, associate wealth advisor at Citrine Capital in San Francisco, described a client who used the AI tool Claude to model retirement scenarios but needed advisors to fold in personal factors such as a desire to live near family or the expectation of caring for aging parents. Advisors pointed to issues like outdated beneficiary designations or missing insurance that algorithms may miss.

Sustaining trust and empathy over decades depends on consistent personal contact. Lauren Mireles, chief operating officer at YeskeBuie, described planners asking questions about daily routines and meaning in retirement, not just numbers. She cited small gestures-sending gifts for a first home or a new child and remembering family details-as practices that help preserve long-term relationships.

Firms that use AI emphasize its role in speeding routine work. Advisors report generative tools reduce research and meeting prep time and improve analytics, freeing time for client-facing activities. Practitioners described a hybrid model in which AI handles repetitive tasks and human advisors focus on judgment, emotion and long-term relationship management. Kayikchyan added that as AI advances, the human elements of planning-trust and empathy-will remain important.