Advisors are growing more comfortable with incorporating artificial intelligence (AI) into their day-to-day business, according to a new report from Orion.

More than 200 of the wealth tech platform’s advisors participated in its quarterly financial advisor pulse survey, with 33% saying they use AI and 46% saying they plan  to incorporate AI into their firm’s strategy within the next three years.

Meanwhile, 42% are already testing to see how AI can help them in their practice and 28% consider themselves very knowledgeable about how to apply AI to their business. 

“As client needs are growing and advisors seek to make their operations more efficient, advisors are increasingly directing their attention toward the potential impact of AI and machine learning,” Natalie Wolfsen, CEO of Orion, said in an email. “This growing adoption and interest is rooted in a desire to fulfill client demands for more sophisticated technology and to make their own operations more efficient.” 

There is still some trepidation over the technology, with 36% expressing fear about applying AI to their business. Advisors should be looking toward AI as a tool to improve their business and see it as competition, Wolfsen said. 

“To those wary of AI or fearful it might replace them, AI is a tool to enhance—not replace—the human element,” she said. “AI acts as an enabler, giving advisors additional time to dig deeper into investor needs and apply the principles of behavioral finance to their client relationships.” 

When it comes to how firms want to incorporate their technology, advisors had a mixed reaction. Twenty-seven percent of those surveyed said they want it bundled meaning they want an all-in-one, integrated platform from a single provider. On the flipside, 10% said they want it unbundled, which is individual technology components from multiple providers. Finally, the survey found that 55% prefer a combination of bundled and unbundled.  

“Advisors clearly see benefits in both the streamlined experience of bundled technology and the flexibility of unbundled tools to create a personalized tech stack,” Wolfsen said. “Ultimately, the choice depends on an advisor's unique business needs.” 

Those that said they preferred the bundled version said it was because the integrated technology creates a streamlined experience. Those who preferred unbundled said it provides freedom to choose individual, best-of-breed tools and build a technology stack that is more personalized, according to the firm.  

Finally, when it comes to planning for the future, many of Orion’s advisors believe that success lies with the high-net-worth investor, which are those with at least $1 million in investable assets, with 84% saying it is essential to their firms’ growth that they serve those clients, with 80% saying they are actively pursuing them, according to the study. 

“High-net-worth investors are essential to business growth,” Wolfsen noted. “This focus is driven by the desire to scale their business, increase profitability, and capture more assets under management.” 

The competition among advisors for this group of investors is increasing according to 82% of those surveyed. For instance, 80% said they have what they described as basic products for the high-net-worth audience while 66%said they have more advanced products which include direct indexing, foreign currency management, behavioral finance, and alternative investments. 

Even though there is an intense focus on high-net worth investors, that does not mean that advisors are overlooking the less affluent clients, according to Wolfsen. "Advisors are leveraging technology to scale services for a broader range of clients,” she said. “By using technology like digital account opening and financial planning tools effectively, advisors can provide high-quality advice and service to all clients.”