Using artificial intelligence can have benefits for both advisors and their clients, according to new research
Financial advisors who use AI tools effectively are reporting sharply higher satisfaction with their firms, and the technology is freeing up time for the kind of relationship-building work that clients increasingly say they value, according to two separate studies released this week.
The JD Power 2026 US Financial Advisor Satisfaction Study found that active use of AI tools among employee advisors climbed to 73%, up from 44% a year earlier. Independent advisors are adopting more slowly, with usage rising to 42% from 19%, but the trend line points the same direction across both channels.
Employee advisors posted an average overall satisfaction score of 632 out of 1,000, but that figure rose to 781 among those who used firm-provided AI tools and rated them effective. Independent advisors averaged 688, climbing to 826 under the same conditions.
JD Power also found that advisors seeing real benefit from AI were considerably more likely to stay loyal to their current firm and to believe their firm offers a genuine path to grow their income.
"We're now seeing AI move beyond the buzz and start to fundamentally change how advisors manage their practices and evaluate their firms' ability to support their continued growth," said Mike Foy, managing director of the wealth management practice at JD Power. "When AI is rolled out smoothly, with proactive communication and effective training, advisors can take hours back from compliance and administrative work and reinvest that time in clients and new business development. The firms that get that formula right are the ones seeing the biggest gains in satisfaction, loyalty and productivity in their advisor populations."
The keys to a "very effective" AI rollout, per JD Power, come down to well-managed technology deployment, proactive communication with advisors, and solid training, rather than the tools themselves.
Teaming and succession pressures
JD Power’s research highlights that advisor teaming is another major factor shaping satisfaction, particularly among independent advisors.
Industry-wide, 40% of employee advisors and 35% of independent advisors now work as part of a team, and that figure jumps to 49% among independent advisors under age 50. Satisfaction peaked among teams of three or four advisors, a size JD Power suggests strikes the best balance between scale and client-facing focus.
Advisor tenure also shapes what support advisors say they need. Newer advisors prioritize help retaining clients, while more experienced advisors are focused on practice valuation as they approach transition or retirement.
JD Power noted that mentorship programmes appear to be losing effectiveness over time, a decline most pronounced among early-career employee advisors, even as failure rates among new entrants remain elevated.
Top-ranked firms
JD Power says that, among employee advisor firms, Stifel ranked highest in overall satisfaction for a fourth consecutive year with a score of 812, ahead of Raymond James & Associates at 775 and Edward Jones at 750.
Among independent firms, Commonwealth topped the rankings for a 13th consecutive year with a score of 790, followed by LPL Financial at 744 and Raymond James Financial Services at 720.
The study measured satisfaction across six categories: compensation, firm leadership and culture, operational support, products and marketing, professional development, and technology. It drew on responses from 4,503 employee and independent advisors surveyed between December 2025 and April 2026.
Reclaiming time for clients
Separate research from Edward Jones and Morning Consult, drawn from a national survey of 201 industry advisors fielded between 15 and 27 May, points to a similar pattern.
Eighty-two percent of advisors surveyed are already using AI in their practice, and 69% believe the technology has had a positive effect on the industry overall. More than half, 53%, see AI primarily as a way to free up time for higher-value client work rather than as a threat to their role.
When asked what tasks they'd most like AI to take off their plate, 59% pointed to administrative work such as scheduling and meeting prep, while 53% wanted help drafting routine client emails and follow-ups.
That recovered time is being redirected toward conversations that have grown more complex. Nearly all advisors surveyed, 97%, said client conversations have changed in recent years, broadening well beyond portfolio performance to cover wealth transfer, financial anxiety and major life decisions. Sixty-eight percent said building and maintaining long-term client trust still depends on a human touch that AI cannot replicate.
Clients are watching too
The Edward Jones research also flagged a shift in how clients themselves are engaging with advice.
Thirty-eight percent of advisors said clients are now comparing what they hear from their advisor against information gathered online or through AI tools directly, a sign that the advisor's job increasingly involves pressure-testing ideas rather than simply delivering them.
Advisors also reported a deepening sense of purpose in the role. Eighty percent said their sense of purpose has grown over the past five years, a trend Edward Jones links to client conversations becoming more personal and centred on major life milestones rather than portfolio returns alone.
