AI is dominating the conversation in financial services right now. How do I know? My favorite financial conference, FutureProof, is actively seeking speakers and sessions focused entirely on AI’s impact on our industry. It reminds me of 1999, when simply adding “.com” to a company’s name was enough to spark investor excitement. Today, just mentioning “AI” seems to have the same effect.
While many are exploring how AI could enhance the advisor’s business, this post focuses on something more provocative: the potential threat AI poses to advisors. The emergence of an AI-powered financial advisor—one that never sleeps, doesn’t tire of client questions, and can process vast amounts of data in milliseconds—isn’t just possible, it’s probable.
On some fronts, we simply can’t compete with that. But on others, we can, and in those areas, humans still hold the advantage.
Human Superiority to AI
We need to be honest about where we can’t compete with AI, most of those areas involve commoditized tasks anyway. But where we can win is by leaning into what AI will never be: human. That’s only a true advantage if we act human—by showing empathy, sharing real experiences, and allowing ourselves to be vulnerable. It’s not perfection that builds trust; it’s connection. And connection happens when clients see our humanity.
I recently hosted a Mastermind call with a group of behavioral financial advisors and asked, “In what ways are we superior to an AI advisor?” One of the most honest, and powerful, answers came quickly: “Be human.”
But that response, while true, isn’t quite enough. What does it really mean to be human? And more importantly, how do we consistently demonstrate the qualities that make a human advisor not only different, but better, than an AI alternative?
Here are just a few of the insights we discussed:
- We feel fear and anxiety during major market declines—just like our clients. That shared emotional experience allows us to empathize and guide from a place of understanding.
- We’ve been blindsided by life’s curveballs—just like our clients. Personal challenges and crises create perspective, compassion, and the ability to help clients navigate the emotional side of money.
- We can discern what’s known from what’s merely believed. AI can sound confident, even when it’s wrong. As human advisors, we bring humility, discernment, and the judgment to question what we’re told.
- We encourage critical thinking. AI may deliver answers quickly, but without context or relevance. Human advisors help clients think deeply, ask better questions, and make decisions aligned with their values.
These are just a few examples. Take time to reflect: How can you better demonstrate your human edge—your empathy, your judgment, your lived experience? That’s how you become the obvious choice in a world where AI is only getting stronger.
It’s Not Enough to Know, You Have to Show
Just knowing how we might be superior to an AI advisor doesn’t make it true. We all know the “secret” to losing weight, but knowledge alone doesn’t translate into results. Doing is much harder than knowing. And that’s what separates those who truly differentiate themselves from those who just claim to.
So ask yourself: Are you becoming more human in how you show up for clients, or simply saying you are? Most advisors will fall into the latter group. Why? Because the status quo bias is powerful. It’s far easier to believe you’re already doing enough than to embrace the discomfort that comes with intentional improvement.
But as the saying goes, “By their fruits ye shall know them.” It’s not about what you say, it’s about what your clients experience.
Becoming a More Human Advisor
In early September I will launch the Behavioral Advisor Academy, a self-paced virtual training program that is expected to qualify for 12+ CE credits and contain several behavioral tools. The academy offers:
- Virtual, on-demand learning modules that combine behavioral finance principles with practical, repeatable strategies.
- Real-world scenarios and case-based learning that reflect the challenges advisors face every day.
- Behavioral tools and client-ready questionnaires designed to deepen trust, guide decision-making, and strengthen investor discipline.