Lately, we have noticed an interesting shift in our introductory meetings. Clients and prospective clients are increasingly coming into our offices with financial strategies, portfolio ideas, or checklists that are printouts of ChatGPT output or other AI engines. We think this is excellent. These tools are fantastic for learning financial concepts, breaking down technical terms, and generating immediate answers. In fact, our team uses advanced technology to streamline behind-the-scenes and scan for opportunities. It makes our technical operations faster and sharper. However, seeing these printouts reminds us of a fundamental truth: getting an answer from a computer is entirely different from getting sound guidance on managing a portfolio. The Multi-Year Behavior Gap Technology is exceptional at solving math problems, but it can struggle when asked to manage your emotions. Morningstar’s “Mind the Gap” study found that over the decade ending December 2024, the average dollar invested in U.S. funds earned about 1.2 percentage points a year less than the funds themselves returned, mostly because investors bought after securities had risen and sold after they had fallen.1 An AI chatbot can tell you that abandoning a strategy during a period of market volatility may be a mistake. But it may struggle to guide you when your stomach is in knots, and every instinct you have is telling you to get out. Managing wealth is not an information transaction. Relationships matter. Quantifying the Human Element The most-cited research suggests that financial professionals add value, but that value comes from behavior and strategy, not from stock-picking and market timing. Vanguard’s long-running Advisor’s Alpha work estimates financial professionals can add roughly 3 percent in net value, and the single largest component, worth more than 1.5 percent on its own, is behavioral coaching.2 According to the 2026 Employee Benefit Research Institute (EBRI), 83 percent of workers with access to a financial advisor feel confident about their retirement readiness, compared with just 53 percent of those without access. The EBRI research suggests that professional support can help people feel more confident about how they approach the future. The role of the financial professional appears to be evolving into that of an interpreter, coach, and strategist.3 What the Algorithm Misses The most important choices in your financial life do not have a single, clean mathematical output. They require context, history, and a deep understanding of your personal values. Putting Technology to Work for You We view AI the same way a skilled surgeon views advanced medical technology. We use it to handle some data analysis so that we can dedicate more of our time to you. You do not partner with us just for calculations; you partner with us for human judgment and a steady hand when the headlines get loud. Our focus remains entirely on building and managing a strategy tailored to your life goals. If you ever want to review your current portfolio strategy, or if you have run some scenarios through an AI engine and the results raised some questions, please let us know. We are always here to talk it through. |
1. Morningstar.com, November 7, 2025. 2. Vanguard.com, February 24, 2025. 3. EBRI.org, 2026. |
This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.