North American Advisors Navigate AI and Generational Shifts Amid Moderating Growth Outlook
Event summary
- North American financial advisors reported average AUM growth of 12% over the past year, with a moderated 10.8% outlook for the next 12 months due to geopolitical uncertainty.
- 68% of advisors note clients holding more cash amid market volatility, while 64% rank increasing geopolitical uncertainty as their top economic concern.
- AI-powered tools and generational wealth transfer are reshaping competition, with 40% of advisors expecting self-directed platforms to become the greatest threat in five years.
- Advisor retirements present both growth opportunities (78%) and talent challenges, particularly in Canada where 67% struggle to hire younger advisors.
The big picture
Natixis Investment Managers' survey highlights a financial advisory sector in transition. While advisors maintain measured confidence (11% growth outlook over three years), they face structural challenges from AI-powered competition and generational wealth transfers. The ability to combine technology with human relationships will determine winners in this evolving landscape, particularly as advisor retirements create both opportunities and talent gaps.
What we're watching
- AI Adoption
- How advisors will balance AI integration challenges (61% report difficulties) with competitive advantages, particularly in client relationship management.
- Wealth Transfer Dynamics
- Whether advisors can improve heir asset retention rates (currently 56%) amid generational shifts and evolving client expectations.
- Market Volatility Impact
- The pace at which geopolitical uncertainty influences long-term growth outlooks, currently projected at 11% over three years.