Clients put advisors on notice about sneaky AI use

The AI boom in financial planning is, in some respects, still in its infancy. But as an increasing number of AI tools become available to advisors, disclosure is key, and a large swath of clients — 79% to be exact — said they would be upset if their advisor used AI and didn’t mention it to them.

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That’s a considerable problem since only 33% of investors said their advisor had discussed their AI use with them.

That’s according to the Janus Henderson 2026 Investor Survey on Perspectives on AI. The survey examined investor attitudes about AI deployment as both an investment theme and a tool in daily practice. The firm polled 1,000 US-based high net worth investors — those with at least $250,000 in investible assets — and vetted top concerns that revolve around security, privacy and overall confidence in the systems themselves.

The data seems to show, according to Matt Sommer, head of the Specialist Consulting Group at Janus Henderson, that advisors may not be as transparent as clients would like about their AI use. Sommer said 50% of the survey’s respondents did not think they were exposed to AI. “That’s just not the case,” he said.

Shane Cummings, a wealth advisor and director of cybersecurity and technology at Long Beach, California, based Halbert Hargrove, concurs. 

“Any investor that [doesn’t think they’re] exposed to AI [is] probably kind of naive at this point,” he said, calling AI more of an institutional table stake. “To some degree, there’s got to be AI in there. Implementation is different across the board.” 

Better the bot you know

Suzanne Siracuse, founder and CEO of New York City-based Siracuse Consulting, said one way advisors can break the ice about AI deployment and client interactions is by finding out what AI, if any, the clients already use. Chances are they’ve interacted with some version of it or another. 

“Be curious and ask clients how they are using AI,” she said. “It’s not going away [and there needs to be] open dialogue.”

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After making inroads and finding out what AI clients already use, what matters next is to get real about what types of AI might be used in the practice and why. Sommer noted that rather than stand in as a substitute for what the advisor does, AI should exist as more of a complement that is “all about amplifying human intelligence.”

If you use it for “administrative tasks, writing educational content or repeatable client service deliverables, it is going to free up a lot of time, and that’s perfect,” said Sommer. Tools that free up an advisor to concentrate on more pressing tasks like face time with clients and researching different services that may or may not be appropriate for them create a “win for everyone,” he said.

AI disclosure and permission

Establishing and keeping client trust also needs to remain top of mind. The survey found that 75% of respondents had concerns that an AI recommendation might be biased or conflicted, and 74% had concerns around data privacy or security. 

To affirm that confidence, simply be upfront about the AI tools in use at the practice. An exciting tool in an advisor’s toolkit might produce hesitancy in a client, but that doesn’t necessarily mean the client won’t come around, especially if they understand how it’s being used. 

Jesse Giordano, founder and principal of Jericho, New York, based Opal Wealth Advisors, said in an email: “We use an AI meeting notetaker. We let the clients know it is there. Approximately 5% of clients have asked for it to be removed, but the overwhelming majority are fine with it once they understand what it does and how it helps us stay more organized and focused during meetings.”

Using the example of an AI notetaker, Cummings added that despite laws varying by state about consent to record, it’s better to ask permission upfront either way. 

“This establishes trust,” he said. “People know what we are doing, and it doesn’t run the risk of people getting upset if we don’t ask about it and they are unhappy later on.”

READ MORE: You’re recording the meeting. Is your client, too?

Cautiously curious consumers

As part of the survey, respondents also shared that they were comfortable having advisors use AI to create materials to educate them. But confidence wanes greatly from there where practice management is concerned. If an advisor used AI to automate responses to texts or emails, 40% of respondents said they would be upset, while 33% would be upset to learn an advisor used AI for investment recommendations.

Although respondents shared some trepidation, it wasn’t all gloom and doom. Some 87% said they would feel “good” or “neutral” about the use of AI to create shareable educational collateral. 

“Clients are pretty curious about it,” Cummings said. “It’s a good talking point. Maybe clients are a little surprised, not really concerned, just more surprised. When we ask for approval, clients ask what we’re using.”

With enough transparency and a healthy heads up, advisors can help their clients navigate AI tools, and for good reason. Seventy-three percent of survey respondents expressed their preference for more traditional methods, such as an advisor doing personal research regarding their investments. 

“The reality is no matter how robust an AI tool may be, it does not replace things like empathy, concern and care,” said Sommer. “It does not ask the hard questions, and it could never replace an advisor, but it can make an advisor more efficient [and] free up time.”