Altruist’s AI-powered tax planning tool on Hazel platform spooks big brokerages, causing stock prices to tumble for LPL Financial, Raymond James, and Charles Schwab. CEO of Evergreen Wealth sees AI tools changing advisor workflow, noting that adoption will determine their impact on bottom lines.

Tax planning tools like Hazel upgrade generate tailored tax plans for clients based on 1040s, account statements, and pay stubs. While some fear firms will go the way of mutual funds, others believe human interpretation is key. Stock market shifts show LPL Financial, Charles Schwab, Stifel Financial, and Piper Sandler Companies taking hits.

AI tools may drive down fees on human advice, impacting the 1% per year typically charged by wealth management firms for human financial advisors. The erosion of fees could be a significant outcome of AI tools in the industry.

Read more at Yahoo Finance: Why Altruist’s New AI Tax Tool Spooked Investors in Schwab, LPL, Raymond James