This reality paved the way for cost-effective alternatives in the form of robo-advisers, such as Betterment and Wealthfront, with significantly lower AUM and no asset minimums. The companies sent shockwaves through the industry as many wondered if machines would finally usurp man.
As years passed, it became obvious the two could have a symbiotic relationship. In fact, it turned out millennials ultimately did crave some soft skills, which led to platforms launching versions that gave customers access to humans.
Instead of cratering the industry, the robo-advisers forced their living counterparts to compete in different ways. Some diversified their services, including offering virtual counsel, and others targeted less-affluent clientele.
While it’s easy for the regular consumer to conflate a robo-adviser with GenAI, the two are not the same. The latter is built on language-learning models instead of the mathematical-centric AI models and machine-learning algorithms that provide the underpinnings for companies like Betterment and Wealthfront.
Gen Z investors may be more attracted to GenAI because it can simulate how people speak and even look. Plus, the cohort is more primed to be early adopters of the tool. They’ve grown used to receiving free, one-size-fits-all money guidance online.
FALLIBLE TECHNOLOGY
A stunning 77 per cent of teens and 20-somethings use online platforms and social media to answer their money questions, according to a 2025 Credit Karma survey.
But they should remember that the technology’s modern iteration is new and, like humans, fallible, which results in inaccurate or misleading information known as “hallucinations.”
Even with all these issues to resolve, companies are bullish on GenAI’s ability to spit out 24/7 guidance and woo new clients.
Arta Finance, a wealth management startup, is at the forefront of providing an AI financial adviser with Arta AI. The “AI agents”, as the company refers to its investment planner, product specialist, and research analyst offerings, can respond to queries by voice or text (and do so in the aforementioned generationally-appropriate slang).
