AI for RIAs: From experiment to strategy

Artificial intelligence (AI) is no longer a science fiction plot twist. It's become part of everyday life for millions of people—at work, at home, and in their social worlds. For advisors, AI has the potential to fundamentally change what's possible for RIA teams and clients. So, how exactly are firms embracing AI and what support do they need?

A Schwab survey of 533 advisors found that many advisors are experimenting with AI to figure out the role it can play in their firm's strategy. "Leaders have a choice to make," says Lisa Salvi, managing director of Business Consulting and Education at Schwab Advisor Services. "Is AI going to happen to your people or with your people?"

Let's look at where firms stand today and the opportunities for AI adoption in the next few years.

AI adoption for RIAs accelerates as experiments continue

Since 2023, AI adoption has more than doubled with 63% of advisors now using AI tools.¹ Of these firms, nearly all use standalone AI solutions such as ChatGPT and Gemini. Across all tools, administrative tasks such as notetaking or emails are the most popular uses for AI, but AI interest doesn't stop at admin. It's also a talent upskill. As advisors' confidence in AI grows, they continue to explore new ways to put AI to work and they value the personal and professional growth they discover along the way.

However, despite strong interest, many advisors report that their firms have not yet taken strategic action and that they need guidance to use AI effectively. Only about one in five say their firm has a vision related to AI adoption.²

Firms that are optimistic about AI and treat it as a strategic imperative tend to get better results. Ultimately, firm leadership will drive the speed and effectiveness of AI adoption.

"Firms that set a clear vision and invest in upskilling their talent and building strong data foundations will be better positioned to turn AI from a curiosity into a huge competitive advantage," Salvi says.

Data governance and security are more important than ever

We've all heard the phrase "garbage in, garbage out." AI is no different—it requires accurate, and integrated data. Without high-quality data, it's tough to unlock higher-value workflows like personalized client advice.

Many firms are exploring vendor-provided AI capabilities and identifying potential use cases. Tech modernization and streamlined workflows are also high priorities. These are good first steps for AI-curious firms. And as AI usage and comfort grows, these firms can continue to step up their mastery of data management and analysis, transforming piles of information into clear opportunities.

"Advisors keep asking us, 'What should we be doing with AI?' The better question is, 'What do we want AI to make possible?' The firms getting the most value aren't chasing features. They're solving real problems—freeing up time for client conversations, personalizing the client experience at scale, and catching risks before they become issues. That's where this is headed," says Adam Moseley, director of AI consulting at Schwab Advisor Services.

Administrative tasks and client communication drive usage

Many advisors have discovered that AI can save them time. More than 80% of AI users apply it to at least one internal operation. Advisors who rely on notetakers say they're better able to pay attention in client meetings and respond to what clients say.³

Think of each use for AI as a building block. Notetakers are a good start and can help you get more comfortable with other forms of automation. Soon you could be ready for data analysis, process automation, and developing more personalized client strategies. At every step along the way, you'll still need real people to review and validate content, but those people can also be freed up to use their expertise in new or expanded ways.

 

Looking ahead

Nearly 60% of advisors believe AI will have a direct, measurable, and consistent impact on the client-advisor relationship within the next 12 months and 68% believe AI will have a transformative effect on the future of financial advice within three years.⁴

The next phase of AI will be powered by intelligent agents—software that's able to analyze information and act on behalf of your firm. RIAs aren't there yet but could be soon. Only about one in ten of the advisors surveyed who use AI say they're currently using AI agents but 28% are considering adding them to their operations.⁵

AI is fueling a major shift in how advisors run their firms. That's why Schwab created a new program to help advisors accelerate their knowledge and aim to use AI more effectively. Schwab Advisor AI in Action offers RIA clients opportunities to join monthly webcasts on AI trends and uses, attend an immersive in-person AI summit, access new thought leadership, and get discounts on select AI vendors.

"We built this program because the gap between early adopters and everyone else is widening," Salvi says. "Advisors don't need more hype about AI. They need a clear path forward, practical examples, and a peer group that's figuring this out alongside them ."

It's clear that AI is no longer a future fantasy—the opportunities are here right now. Leaders who set a vision and strategy, create time and space for firm-wide learning, invest in talent, and build strong data governance will be better positioned to thrive in an AI-powered world.

What you can do next

• Learn more about AI in the RIA industry from our Guiding Principles Series white paper, "Schwab Advisor AI in Action: AI's transformative impact on RIAs."
• Curious about how Schwab helps RIAs? Wealth services, technology, and business support are just the beginning. Whether you're exploring independence or considering a custodian swap, we're here to help you take your next step.