Despite concerns over AI and structural shifts, industry metrics and increased technology spending suggest that major wealth managers remain resilient, with many positioning for mid- to long-term growth amid ongoing consolidation and innovation.
Shares in major wealth managers have been buffeted by concerns that artificial intelligence and other structural shifts could erode their business models, yet industry metrics and surveys suggest the fundamentals remain robust and that technology may be more of an accelerant than an existential threat.
A recent study by Fitch Ratings found that six publicly traded U.S. retail broker-dealers and wealth firms recorded combined record client asset levels last year, posted a 17% increase in net revenue and lifted pretax earnings by 21% amid what the agency described as “solid performance.” According to the Fitch analysis, those gains were driven by higher market valuations, platform innovation and greater transactional activity. Henry Ye, a Fitch director and co-author of the report, said: “Market volatility typically shifts earnings drivers, rather than uniformly pressuring earnings. The sector has demonstrated notable resilience despite macro volatility, though earnings sensitivities differ by business model and revenue mix.”
The selloffs that punctuated the start of 2026 followed several high-profile market episodes. Custodian Altruist’s Feb. 10 introduction of an AI-powered tax tool touched off one wave of declines, and broader investor anxiety about AI’s impact, private credit and trade-policy uncertainty have amplified near-term price swings. But executives point to client assets as the more telling barometer of health. Raj Bhattacharyya, chief executive of Robertson Stephens Wealth Management, noted that his firm’s assets under management rose 23% in 2025 to $8.7 billion owing to acquisitions, market appreciation and organic growth, and said: “The simplest answer to that is that America gets wealthier every year.” He added: “The one I care about is the client assets , what do our clients trust us with as a company?”
Platform usage and trading volumes surged in 2025, according to Fitch, with extended-hours trading, broader product access and digital-asset exposures cited as contributors. Schwab in particular benefited from scale and an expanding net interest margin, while other firms saw recruitment and acquisition costs compress near-term profitability. Ye observed that rising technology investment is reshaping competitive dynamics: “On AI investments, we view substantial technology investments as increasingly essential for competitive positioning,” and pointed to Raymond James’ planned $1.1 billion technology spend for 2026 as an example of scale tilting the field.
Independent research and industry surveys show wide adoption of AI across wealth and asset management, reinforcing Fitch’s view that technology spending will be central to strategy. According to a 2025 Natixis Investment Managers survey, nearly 60% of U.S. wealth managers fear market disruption from economic, technological and regulatory forces, and 74% see AI as crucial for operational efficiency. A Publicis Sapient report from 2025 found that around six in 10 firms already use AI for customer analysis and similar proportions employ it for conversational support and self-service tools. Grant Thornton’s industry commentary warned that while AI is transforming workflows and client engagement, organisational inertia and suboptimal data practices remain significant hurdles.
More aggressive claims about AI’s effects on costs and labour also circulate widely. AInvest reported in 2025 that almost all wealth and asset managers had scaled generative AI to multiple use cases and that leading firms are cutting manual advisor tasks substantially. Morgan Stanley’s 2025 study projected up to $920 billion in annual savings for corporate America under full AI adoption, a figure that underlines both efficiency gains and potential labour-market disruption. Deloitte and other consultancies have documented operational cost reductions and lower error rates from AI automation, trends highlighted in industry commentary and vendor analyses.
Capital discipline and conservative lending practices, particularly around securities-based lending, remain important risk mitigants, Fitch says, and could give public firms an advantage in the competition for advisors and in M&A. Industry consolidation is expected to continue as firms buy scale, add product capabilities such as private assets and active ETFs, and invest in model portfolios to boost efficiency and client retention. According to Natixis, 45% of wealth managers plan to broaden their service set while 82% are adopting model portfolios.
For investors watching share prices, the disconnect between stock volatility and operating fundamentals has been stark. Transactional revenues spiked during the market turbulence of 2025 and may normalise if volatility eases, Ye warned. Yet the balance-sheet postures, expanding technology budgets and persistent client-asset growth imply that many firms are positioning for mid- to long-term margin improvement rather than imminent structural decline. How quickly AI deployments translate into durable cost saves, higher advisor productivity and differentiated client outcomes will be the key determinant of winners and losers in the sector.
- https://www.financial-planning.com/news/what-ai-stock-selloffs-may-get-wrong-in-wealth-management – Please view link – unable to able to access data
- https://www.natixis.com/en/us/about/newsroom/press-releases/2025/us-wealth-managers-press-growth-plans-amid-concerns-of-further-market-disruption – A 2025 survey by Natixis Investment Managers reveals that nearly 60% of U.S. wealth managers are concerned about market disruptions due to economic uncertainties, technological advancements, and regulatory changes. To drive growth, 45% plan to expand service offerings, including private assets and active ETFs. Additionally, 82% are adopting model portfolios to enhance efficiency and client retention. Artificial intelligence is viewed as a crucial tool for improving operational efficiency (74%), conducting research (73%), and analysing risk (71%).
- https://www.publicissapient.com/content/dam/ps-reinvent/us/en/2025/11/ai-powered-investment-firm-report-2025/docs/ai-investment-e-book-final.pdf – A 2025 report by Publicis Sapient highlights the increasing adoption of AI in wealth and asset management firms. The report indicates that nearly 60% of firms are using AI for customer analysis, 58% for conversational support, and 54% for self-service portals. AI is also being utilised in back-office functions, such as automating compliance checks and enhancing data security. The report underscores the growing importance of AI in improving efficiency and client engagement within the industry.
- https://www.grantthornton.com/insights/articles/asset-management/2025/ai-is-transforming-asset-management – A 2025 article by Grant Thornton discusses the transformative impact of AI on asset management. It notes that less than 10% of firms are currently using agentic AI, but 18% plan to adopt it within the next three years. AI is improving advisor experiences by automating tasks like analysing survey feedback and creating personalised communications. However, challenges such as slow-moving cultures and limited access to quality data persist, with about half of firms lacking basic processes to clean and normalise internal data.
- https://www.ainvest.com/news/strategic-adoption-generative-ai-wealth-management-revolutionizing-investor-profiling-portfolio-optimization-2510/ – A 2025 article by AInvest explores the strategic adoption of generative AI in wealth management, focusing on investor profiling and portfolio optimisation. The article highlights that by 2025, 95% of wealth and asset management firms have scaled generative AI adoption to multiple use cases, with 78% exploring agentic AI for strategic advantages. Leading firms like Morgan Stanley and JPMorgan Chase are leveraging AI-powered tools to streamline advisor workflows and generate innovative investment portfolios, reducing manual tasks by up to 60% and allowing advisors to focus on high-value client interactions.
- https://aiqlabs.ai/blog/why-wealth-management-firms-are-adopting-end-to-end-ai-automation – A 2025 blog post by AIQLabs discusses the adoption of end-to-end AI automation in wealth management firms. The post cites Deloitte’s 2023 findings that AI reduces document processing time by 60–80% and cuts error rates by up to 90%. Firms using AI automation have seen a 22% reduction in operational costs, according to Deloitte’s 2024 report. AI compliance monitoring has led to nearly 30% fewer regulatory violations, and AI-enhanced forecasting models are 15–20% more accurate than traditional methods, as reported by JPMorgan Chase in 2024.
- https://www.axios.com/2025/08/19/ai-jobs-morgan-stanley – A 2025 study by Morgan Stanley reveals that full adoption of artificial intelligence could save corporate America approximately $920 billion annually. These savings are projected after accounting for implementation costs and are largely attributed to reduced labour expenses, potentially signalling significant job losses. The data suggests that AI could fundamentally reshape business economics, leading to major profitability boosts and justifying current high company valuations.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
7
Notes:
The article references a Fitch Ratings study and statements from Robertson Stephens’ CEO, Raj Bhattacharyya. The latest available data from Robertson Stephens indicates assets under management (AUM) of $8.7 billion as of February 4, 2026. ([rscapital.com](https://rscapital.com/2026/02/04/roberston-stephens-ends-2025-with-8-7-billion-in-assets/?utm_source=openai)) The article mentions a 23% growth over the preceding 12 months, which aligns with the reported AUM figures. However, the article was published on February 25, 2026, suggesting that the information is current. No evidence of recycled content or significant discrepancies in figures was found. The narrative appears original and timely.
Quotes check
Score:
6
Notes:
The article includes direct quotes from Raj Bhattacharyya, CEO of Robertson Stephens. While these quotes are consistent with previous statements from Bhattacharyya, no direct matches were found in the search results, making independent verification challenging. The absence of verifiable sources raises concerns about the authenticity of the quotes.
Source reliability
Score:
6
Notes:
The article originates from Financial Planning, a reputable publication in the financial sector. However, the reliance on statements from Robertson Stephens’ CEO without independent verification of the quotes diminishes the overall reliability. The lack of corroborating sources for the quotes is a significant concern.
Plausibility check
Score:
7
Notes:
The claims regarding AI’s impact on wealth management and the growth of Robertson Stephens’ AUM are plausible and align with industry trends. However, the absence of independent verification for the quotes and the reliance on a single source for key information raise questions about the narrative’s credibility.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents plausible claims about AI’s impact on wealth management and reports on Robertson Stephens’ AUM growth. However, the reliance on unverified quotes from the company’s CEO and the lack of independent corroboration for key information significantly undermine the article’s credibility. The absence of independent verification for the quotes and the reliance on a single source for key information raise questions about the narrative’s credibility.