Betterment Advisor Solutions (BAS), an all-in-one custodian for modern RIAs, has published the results of its second annual survey of how technology and industry trends are impacting how independent U.S. advisors serve their clients.

The "Great Wealth Transfer," where Millennials are set to inherit significant wealth from Baby Boomers, along with advances in AI, is reshaping wealth management. Advisors must meet the expectations of Millennials and Gen-Z clients by adopting innovative technology while also managing AI-related risks.   

Key findings from Betterment's 2025 Advisor Survey include:

• AI adoption is rising: Across all ages, RIAs are embracing AI. Gen Z/Millennial advisors harness AI for simplifying admin tasks, while older advisors use it to enhance client communications. Overall, 53% of advisors now use AI to stay current with industry updates, surpassing the percentage of advisors that use social media to do so (48%).
• Gen Z fears AI competition: Younger advisors are more wary of "ChatGPT financial advisors" and clients' growing reliance on generative AI. Overall, 65% of advisors surveyed expressed concerns about clients using AI for financial advice.
• Younger RIAs, less worry: Gen Z and Millennials show less concern about macroeconomics and geopolitics than older advisors. For example, while 41% of Gen Z and Millennial advisors cite market volatility as a top concern, more than half (51%) of their Generation X and Baby Boomer counterparts do so.
• Digital-first clients want less hands-on interaction: Younger investors prefer streamlined, tech-driven experiences, making AI-powered advising a key draw for the next wave of clients.

"Younger investors desire a more digital experience and prefer to spend less time managing their investments. Our survey identifies how modern advisors can utilize this information to better serve them," said Sarah Levy, CEO of Betterment. "Advisors who embrace new technology will be the ones to win tomorrow's clients, and we are proud to be able to empower them to adapt to shifting expectations."

The survey, now in its second year, captured insights from 500 independent RIAs nationwide, each managing between $10 million and $250 million in assets. Participating advisors provided information about client demographics and needs, and how clients in different age groups view and approach modern financial advisory services.