AdvisorHub reports that industry participants continue to debate how artificial intelligence (AI) will reshape the financial advisory landscape, with many focusing non its potential impact on pricing. Executives and consultants report that AI tools increasingly replicate core aspects of financial planning and portfolio analysis, which could place downward pressure on advisory fees and advisor compensation.
According to a 2025 report from Cerulli Associates, the average asset-based advisory fee ranges from 125 basis points for clients with $100,000 in investable assets to 67 basis points for clients with $10 million. At the same time, investors are showing increased sensitivity to costs as AI capabilities continue to advance.
Firms across the industry have begun integrating AI into advisor workflows. AdvisorHub reports that consultants expect these tools to become widely accessible to investors, echoing prior industry shifts such as discount brokerage and robo-advisors that have reduced investing costs.
At the same time, analysts anticipate increased fee pressure. According to AdvisorHub, industry experts emphasize that AI may replicate functions that advisors traditionally perform, which could challenge pricing structures. Morningstar data shows that 56 percent of advisors now expect generative AI to significantly affect the industry, up from 44 percent the prior year. Advisors identified low-cost AI alternatives as a leading threat to revenue.
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