Kitces Sees AI Lifting Advice Quality 40% as Wealth Tech Vendors Could Top 750
Updated
Updated · Wealth Management · Jun 10
Kitces Sees AI Lifting Advice Quality 40% as Wealth Tech Vendors Could Top 750
3 articles · Updated · Wealth Management · Jun 10
Summary
Michael Kitces told Wealth Management EDGE that AI is more likely to improve advice quality than let advisors dramatically expand client rosters, arguing firms often use time savings to go deeper with clients.
A 40% improvement in planning, investment analysis and client outcomes is a more plausible result than 40% larger books, he said, while Jason Pereira called the idea of serving 1,000 to 2,000 clients "my nightmare."
On advisor technology, Kitces said the roughly 500 firms on his FinTech Solutions Map could exceed 750 within five years as AI coding tools cut barriers to launching viable products.
That growth may outpace consolidation because many niche tools are built by advisors solving their own firms' problems rather than VC-backed startups under pressure to scale or sell.
Pereira said easier coding does not make products market-ready, warning that turning a point solution into scalable software requires far more work than building a sophisticated spreadsheet.