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Survey: Advisors Say AI Will Redefine – Not Replace – Their Role
Plus, the latest in market news.
Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.
Today we’re talking about artificial intelligence and the ever evolving advisor toolkit. While AI may be handling more of the heavy lifting, that shift is opening the door to something much bigger. Read on to see what it means for your role.
Plus, a look at all the top stories and market activity from this past week.
Advisor Spotlight: If you would like your company to be featured in our upcoming Advisor Spotlight, click here to send us an email.
INDUSTRY CHATTER
Earlier this year we looked at the boundaries advisors were drawing when it comes to AI, where they trust it, and where they don’t. The takeaway was clear: advisors are embracing AI for efficiency, but not for decision-making.
That framing still holds. But new data suggests the bigger story isn’t about what advisors won’t hand off to AI — it’s about what that handoff is making possible.
A new survey from Advisor360° finds that 90% of advisors don’t expect AI to make their role obsolete in the next decade. Still, nearly 70% expect meaningful changes in responsibilities, and one in five anticipate a smaller advisor headcount.
Those responsibilities include developing more of a personalized client experience, while using AI for time-intensive tasks such as tax planning, portfolio modeling, and retirement income.
In fact, 92% of advisors report that clients now expect more holistic, multi-dimensional advice, beyond investments. In practice, this means the “figuring out” can increasingly be handled by AI, leaving advisors to guide clients through life transitions, market stress, and complex decisions.
Generational differences matter too. Younger clients assume technology is embedded in the experience; they care more about responsiveness and personalization. Older clients often prioritize trust and human judgment. AI amplifies the expectations of both groups — just in different ways.
The limiting factor isn’t advisor willingness, it’s the technology itself. Two-thirds of advisors say their current systems need improvement, particularly around integration and AI capabilities. Satisfaction with firm technology is declining, suggesting that without smarter tools, the potential of AI to expand services may remain unrealized.
The takeaway isn’t that AI will someday redefine advice. It’s that it’s already redefining where advisors are most valuable — handling the heavy lifting so humans can do what machines can’t: guide, empathize, and coach through life’s uncertainties.
A single uncomfortable question defined the week on Wall Street: Has the Iran war permanently reset the inflation and interest rate outlook for 2026?
By Friday, markets had an answer — and it wasn’t reassuring.
The Strait of Hormuz remains closed. Brent crude ended the week above $110 per barrel.
But the crisis has now moved from Hormuz to the gas station: U.S. retail diesel crossed $5 per gallon — up 35% from $3.69 just a month ago, and closing in near the 2022 record. Gasoline is approaching $4.
Consumers have noticed. So have money markets.
Traders are now pricing in a scenario that felt unthinkable three weeks ago: rate hikes.
The Federal Reserve — which President Donald Trump has spent his entire second term trying to push toward cuts — may now be forced to move in the opposite direction.
Oil Shock Triggers Inflation Warnings
The University of Michigan documented a dramatic shift in inflation expectations in the nine days following the start of U.S. military operations: expectations for gas price increases over the next year surged to 42.6%, from just 10% beforehand.
Year-ahead inflation expectations climbed from 3.3% to 3.5%, while long-run expectations rose from 3.1% to 3.3% — an early signal that the energy shock may be reshaping how Americans think about prices more broadly.
Prediction markets have moved sharply, too.
Traders now assign a coin-flip chance that annual March inflation will exceed 3.4% — compared to 2.4% in February.
A one-percentage-point jump in annual inflation over a single month is historically rare, occurring only a handful of times in modern history, almost always around major energy crises.
The Federal Reserve took notice at its meeting this week.
In its updated Summary of Economic Projections, policymakers raised their inflation forecasts, with Chair Jerome Powell acknowledging that energy-driven price pressures represent a meaningful upside risk to the inflation outlook.
The Fed held rates steady but pointedly declined to rule out future increases.
Markets interpreted the message quickly and harshly. By Friday, money markets were pricing a better-than-even chance the Fed raises rates by October.
U.S. short-term Treasury yields spiked toward 4%, on pace for their biggest monthly jump since February 2023.
The result was a brutal week for rate-sensitive assets.
Gold, which had surged through last year on expectations of falling rates, tumbled 9.8% by midday Friday — its worst weekly performance since 1983.
Silver and gold mining stocks fell sharply in sympathy.
The S&P 500, Nasdaq 100, and Dow Jones all closed below their 200-day moving averages at the end of the week, for the first time since March 2025.
The S&P 500’s 14-day RSI dropped below 30 for the first time since the April 2025 tariff shock — crossing into oversold territory as selling pressure showed no sign of letting up.
Every major sector finished in the red, save one: the Energy Select Sector SPDR Fund (XLE), which remains the sole beneficiary of the crisis.
Chart Of The Week: S&P 500 Closes Below 200-day Average, Hits ‘Oversold’ RSI
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THE WEEK AHEAD
Economic Data
Monday: Construction spending
Tuesday: U.S. productivity, Manufacturing/Services PMI
Wednesday: Import price index, Fed speech (Stephen Miran)
Thursday: Initial jobless claims, Fed speeches (Cook, Miran, Jefferson, Barr)
Friday: Consumer sentiment, Rig count
Earnings
Click here for the full calendar of economic data and earnings reports.
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