The wealth management industry is hitting record highs in terms of financial advisors, clients, employees, and assets under management. The demand for financial advice is growing, leading to new technologies like AI and a shift in services offered by advisors to include tax strategy and estate planning.

With technology reshaping wealth management practices, firms are embracing automation to personalize services and scale their practices for long-term competitiveness. The industry is experiencing considerable growth and consolidation, with a significant increase in assets under management and the number of advisors serving millions of clients.

The growth of RIAs is impacting traditional brokerage firms, with a decline in the number of brokerage representatives and firms. Regulatory changes are on the horizon, with increased enforcement activity reported in 2024 related to violations and civil money penalties. Advisors need to be audit-ready and proactive in compliance to navigate the evolving regulatory landscape.

Artificial intelligence poses challenges for marketing in the wealth management industry, with advisors needing to ensure accuracy, supervision, and disclosures in their communications. Firms should focus on acceptable use policies and internal audits to navigate the use of AI in generating content and communicating with clients effectively.

Read more at Yahoo Finance: Record RIA Growth Is Great. Here’s the Catch