Five factors set to disrupt the financial advice business

Financial advisors are pursuing growth in one of the most complex operating environments in years. Despite geopolitical instability, energy market disruption, and interest rate uncertainty, they expect to grow assets under management by 11.9% in the year ahead and 12.8% annually over the next three years.

But growth is no longer just a function of markets. Advisors are now navigating a convergence of structural shifts – from artificial intelligence and digital competition to aging clients and an aging workforce – that are reshaping how advice is delivered, consumed, and valued.

To succeed, advisors will need to prioritize five critical challenges that will define the future of the business:

Five growth challenges for advisors

• Keep clients invested in uncertain times: Volatility is putting pressure on investor behavior, with 74% of advisors reporting clients are moving to cash amid uncertainty. At the same time, behavioral mistakes – such as reacting to headlines, chasing returns, and unrealistic expectations – are increasing, making asset retention a primary driver of growth. Advisors will need to reinforce a disciplined investment rationale and clearly articulate the role of both equities and fixed income to keep clients invested and portfolios on track.
  
  
• Capitalize on the opportunities and efficiencies in AI: Advisors see artificial intelligence as a long-term driver of both markets and practice efficiency, with 69% expecting it to influence markets for decades. Adoption is accelerating as firms use AI to support research, communications, and portfolio decisions, helping free up time for client engagement. But capturing the full benefit will depend on how effectively advisors integrate AI into workflows while balancing opportunity with implementation challenges.
  
  
• Determine where digitization helps (and hurts) the business: The rise of AI and digital platforms is fundamentally shifting the competitive landscape. Advisors expect AI-enabled tools for self-directed investors to become their primary competition within five years (43%), far surpassing traditional advisors. As younger investors increasingly favor digital advice, firms must determine where technology enhances their value – and where it risks disintermediation.
  
  
• Adapt to an aging client base: As the first Baby Boomers turn 80, advisors are facing both an asset retention challenge and a growth gap. Older clients are transitioning from accumulation to income, while investors under 45 remain underrepresented in advisor books. To compete, advisors are expanding digital capabilities, introducing specialized planning services, and rethinking engagement strategies to better align with the needs and expectations of younger investors.
  
  
• Tap the opportunity of an aging advisor base: A wave of advisor retirements is reshaping the industry, with 77% viewing it as a significant opportunity for growth as assets transition. However, capitalizing on this opportunity requires effective succession planning and talent development, particularly as firms struggle to recruit younger advisors. The ability to transfer relationships, maintain continuity, and scale talent will be critical to capturing this next phase of growth.

Explore the full report

The Natixis 2026 Global Survey of Financial Advisors captures insights from 2,950 professionals across 23 countries, providing a global view of how advisors are navigating uncertainty, adopting new technologies, and positioning for growth.

Download the report to explore deeper insights on:

• Managing investor behavior in volatile markets
• The evolving role of AI in portfolios and practices
• Competing in a digital-first advice landscape
• Winning the next generation of clients
• Planning for succession and long-term business growth