Artificial intelligence (AI) has rapidly evolved from simple language models to systems capable of performing complex, goal-oriented tasks. Financial Planning reports that the latest generation, "Agentic AI," can now process multiple layers of reasoning, enabling financial advisors to deepen client relationships and operate more efficiently.
During her keynote presentation at the ADVISE AI Conference, Amy Young, formerly of Microsoft, outlined how this new phase of AI empowers advisors to spend less time on administrative work and more time providing value to clients. According to Young, the primary motivation behind firms investing in AI remains constant: enhancing client engagement. However, she noted that the industry rarely focuses on how to help advisors make better use of the time AI frees up.
According to Financial Planning, Young traced AI's recent evolution, beginning with the 2022 launch of ChatGPT, which relied on static internet data and lacked contextual understanding. As cloud providers began offering curated model marketplaces, developers gained the ability to train models on more relevant and current data. By early 2024, this led to the rise of AI tools embedded directly within software platforms—tools that could leverage firms' proprietary data to deliver far more tailored outputs.
The result, Young explained, is that AI can now manage interconnected workflows rather than isolated tasks. The next frontier, she said, lies in "reasoning models"—AI systems capable of taking intermediate steps to produce higher-quality, more nuanced results.
As reported by Financial Planning, Young encouraged advisors to view AI not as a standalone tool but as a means of differentiation. To maximize the technologies, advisors must first identify their target clients and clarify how they deliver unique value. From there, they can strategically use their existing data sources to build customized AI agents that strengthen relationships and distinguish their practice in a competitive market.
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