AI is taking over much of the manual work that once filled a junior advisor’s first years – but independent RIAs are still hiring them anyway as next-gen talent becomes more important for many firms stuck between a succession cliff and a generational wealth transfer.
A recent survey by Cerulli Associates, in partnership with Vista Equity Partners, found nearly two-thirds (64%) of RIAs reporting that AI has reduced manual and administrative work, yet 73% are most likely to add junior advisors over the next two years.
For Sean Clancy, a wealth advisor and managing director who has spent 21 years at Prime Capital Financial and runs its Denver office, those two stats make perfect sense.
“We have an older advisor base in this country,” Clancy told InvestmentNews in a recent interview. “A lot of these advisors are looking for a succession plan. So I think part of it is having a smooth transition to a junior advisor where you’re not flat out selling your book to a stranger.”
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