A recent debate highlights concerns over AI platforms claiming predictive accuracy in market performance.

According to Financial Planning, Michael Kitces, co-founder of the XY Planning Network, challenges the viability of AI systems marketed as predictive tools for investment success. Kitces argued that firms truly capable of identifying exploitable patterns would more effectively raise hedge funds than sell software-as-a-service (SaaS).

One AI-based firm, StockSnips, seeks to address this gap by providing independent advisors with real-time portfolio data insights, positioning these advisors to compete amid the rising dominance of passive index funds.

Financial Planning also reports that BlackRock's recent survey found that 91 percent of respondents plan to increase investments in private assets over the next two years, which could drive demand for AI-driven private asset platforms like those of Opto Investments.

According to Matt Matrisian of AssetMark, AI's current primary value lies in improving operational efficiencies, such as client communication and meeting summaries. This aligns with recent findings showing advisors often leverage large language models like ChatGPT for research, compliance, and marketing tasks.

Matrisian anticipates that advisors increasingly will adopt AI tools for portfolio planning in the future as clients grow more comfortable with AI-driven insights. However, he emphasizes that advisors remain essential to final decision-making, ensuring the technology serves as an enhancement rather than a replacement for their expertise.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.