The news: Despite their growing acceptance of AI, affluent Gen Z and millennial investors still value human guidance, per a new Bank of America study. Eighty-seven percent said they’re comfortable with advisors using AI, and 47% already use it themselves for investment research. Yet, 65% still prefer to receive investment advice from a human advisor.

Why this matters: The future of wealth management is not a choice between technology and people. It's a hybrid model where AI enhances research, personalization, and efficiency, while advisors provide judgment, trust, and relationship management.

To reinforce this, firms should position AI as a tool that empowers rather than replaces advisors. 

Zoom in: This balance can help ease lingering skepticism around AI use in wealth management. According to Business Insider:

• 75% of investors worry that AI systems may be biased
• 74% think it could compromise their privacy
• 70% believe it could produce information that is difficult to verify 

Implications for banks: AI is raising the baseline for what younger investors expect from financial institutions. As consumers grow accustomed to personalized recommendations, instant answers, and tailored digital experiences from companies across industries, they will come to expect the same from wealth managers. 

At the same time, AI is making customized insights more scalable, shifting the value of advisors away from routine portfolio management and toward more complex services such as financial planning, tax strategy, estate planning, and navigating major life events. For banks, the real opportunity lies in redefining what constitutes premium advice. 

Institutions that use AI to free advisors from administrative tasks and deepen higher-value client interactions will be better positioned to attract and retain affluent younger investors as they accumulate and inherit more wealth.

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