Feb. 10 at 8:53 PM
Wealth management stocks sold off sharply as investors reacted to growing fears that artificial intelligence could disrupt traditional advisory models. Shares of major firms fell after Altruist announced a new AI-powered tax planning tool, Hazel, which promises to generate personalized tax strategies within minutes. The development heightened concerns that new AI-driven platforms could erode margins or displace parts of advisors’ core services.
The selloff also followed recent AI-related declines in insurance stocks and was compounded by weak economic data, which raised worries about slower asset growth across the sector. While incumbents are investing in their own AI tools, investors currently appear more focused on the threat posed by smaller, potentially disruptive competitors.
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