Young high-net-worth investors expect their advisor to be as comfortable with using artificial intelligence (AI) as they are and, if advisors are not, they may lose clients, according to a new study.

Boosted.ai, a Toronto-based firm that provides AI tools for firms across North America, surveyed more than 1,000 high-net-worth individuals and found that of the 165 18-to-44-year-olds surveyed, 70% said it is important their financial advisor use emerging technologies such as AI. In fact, 35% of the younger generation feels so strongly about it that they would consider changing their financial advisor if the advisor was not implementing AI.   

“I do believe [AI] is becoming essential in the workflow because those who are not adopting it yet are beginning to see their competition is communicating more rapidly and more concisely with their clients and sometimes even having the opportunity to take clients from others because they are more proactive in their communications as a result of the technology,” said Geoff Clauss, chief revenue officer at Boosted.ai.

Younger high-net-worth individuals feel that they have a firm grasp on AI, as 82% said they are AI proficient and 56% said they use it regularly, the survey found. Seventy-nine percent of younger high-net-worth individuals said that they either somehwhat or strongly agree that they want their financial advisor to take advantage of AI tools. 

Among all investors surveyed, 50% said they prefer advisors implement AI along with traditional methods when managing their money.

“Gen Z and Millennials understand the transformational nature of AI and how it will impact their lives, including their finances,” Joshua Pantony, CEO of Boosted.ai, said in a press release. “They’re becoming more comfortable using it, and clearly expect the people they trust with their investments to leverage the technology as well, to help guide asset allocation, manage risk in line with their investment goals, and help close the wealth gap.”   

Advisors may fear AI will replace them and that by incorporating it more, they are putting themselves out of business, but the opposite is true, Clauss said.

“People are learning how to use AI to improve their current workflow and/or position,” he said. “It’s not necessarily replacing jobs or job functions, it’s enhancing one’s ability to do their role better.”