Will AI Replace Financial Planners?

I like to think of myself as an emotionless robot when it comes to investing. Buy a single, low-cost, globally diversified, and risk-appropriate asset allocation ETF – contribute to it regularly, and move on with your life.

It’s the same mindset I encourage my clients to adopt. Focus on what you can control, make evidence-based decisions, and avoid emotions like fear and greed that can derail long-term plans.

The late Daniel Kahneman, Nobel laureate and author of Thinking, Fast and Slow, argued that algorithms consistently outperform humans in “noisy” environments – situations full of uncertainty, where our judgment is clouded by biases, overconfidence, and emotion.

Investing is exactly that kind of environment.

So it’s fair to ask: if algorithms are better, and AI tools like ChatGPT can explain everything from RRIFs to capital gains tax, do we really need financial planners anymore?

A reader recently asked me this very question: Is advice-only planning a wise career choice when robo-advisors, AI, and all-in-one ETFs exist and are becoming so good, so fast?

It’s a valid concern. But here’s what I think:

Will AI replace financial planners?

Short answer: Not entirely.

Here’s why.

What large language models (LLMs) and chatbots like ChatGPT can do well:

• Crunch numbers fast and accurately (retirement projections, tax comparisons, withdrawal simulations).
• Translate complexity into plain language (like explaining pensions, RRIF withdrawals, or TFSA rules).
• Offer 24/7 access to general financial guidance.
• Spot gaps or opportunities – assuming it’s given clear and complete context.

For DIY investors or people with fairly straightforward financial situations, AI tools like this might reduce the need for a planner – or at least complement one. And that’s a good thing.

But…

What it can’t do (and where real planners thrive):

1.) Emotional intelligence and behavioural coaching

Investing is simple. Staying invested is hard.

Markets drop, headlines scream, fear creeps in. A spreadsheet can’t calm nerves. A chatbot can’t reassure you that your plan is still on track.

Helping clients spend without guilt in retirement, stay disciplined during downturns, or let go of money with confidence?

That’s not math. That’s trust, coaching, and empathy.

2.) Understanding personal nuance

Every client’s situation is different – not just in terms of numbers, but in values, family dynamics, health concerns, and priorities.

Blended families. Complex estates. Business succession. Interpersonal drama.

That doesn’t fit into tidy prompts.

Good planners don’t just hear what clients say – they pick up on what’s not being said. That’s the real work.

3.) Building trust over time

Clients don’t just want financial clarity. They want someone in their corner during transitions: retirement, downsizing, selling a business, losing a partner, kids leaving the nest.

They want a real relationship. You can’t automate that.

4.) Custom interpretation of advice

ChatGPT can give you technically correct answers. But sometimes, what’s optimal on paper doesn’t align with someone’s comfort level or goals.

A real planner helps clients weigh trade-offs, navigate grey areas, and make decisions that are right for them, not just right according to the textbook.

I send my clients a comprehensive report filled with numbers and graphs and charts. But I act as the interpreter of that information to tease out (in plain language) the answers to their burning questions, point out any red flags or opportunities to consider, and answer the underlying question – are they going to be okay?

I explain the magic of pairing low-cost investing in index funds with on-demand financial planning advice at key life stages. That’s a recipe for great financial outcomes.

So, where is this all going?

The bottom line

The future isn’t human vs. machine. It’s human + machine.

Planners who embrace AI tools to work more efficiently, serve more people, and communicate more clearly will thrive.

Those who try to compete with AI (or dismiss it) on technical knowledge alone? They’ll struggle.

Just like index funds didn’t eliminate advisors – they changed the role. From stock-pickers to planners. From product-pushers to problem-solvers. AI will push this evolution even further.

There will always be a place for human connection in financial planning – especially when it comes to the big, messy, emotional life decisions.

AI can give you a map. But most people still want a guide.

But wait…

How AI Replaced Financial Advisors (And What We Didn’t See Coming)

If all of that sounded a little too naive (coming from a financial planner, after all) let’s imagine a scenario in which AI does replace advisors at some point in the not too distant future. What went right for AI? What went wrong for human advisors?

By 2037, the last CFP quietly closed shop in Saskatoon.

He didn’t retire, exactly. He just stopped getting calls.

Let’s rewind a bit.

For years, financial planners warned: “AI can do the math, but it can’t understand people.”

We said things like:

“Clients want a relationship.”
“Money is emotional.”
“We do more than build spreadsheets.”

And that was all true – until it wasn’t.

What Went Right for AI

1. Just-in-time financial literacy

Forget dusty high school personal finance curriculums. By the 2030s, AI became your real-world tutor:

• Open a bank account? AI walked you through it.
• File your first tax return? It did it for you – accurately, for free.
• Buy a house? It compared rates, pre-filled your mortgage app, and reminded you not to drain your TFSA for the down payment.

No lectures, no PDFs. Just the right advice at the right time.

And that changed the game. Because most people don’t need a financial planner on retainer – they just need help when things happen.

2. Accessibility and affordability

AI made planning frictionless:

• You didn’t book a meeting – you just asked a question.
• You didn’t wait two weeks for a financial planning projection or Monte Carlo simulation – you got one in 10 seconds.
• You didn’t pay $3,000 – you paid $10/month bundled into your bank app.

This wasn’t just a win for tech-savvy investors. It was a win for everyone who used to fall through the cracks:

• Newcomers to Canada
• Young adults with no assets
• Retirees afraid to spend

AI didn’t replace elite planning. It replaced no planning.

3. Behavioral nudges that actually worked

We thought clients wanted hand-holding. Turns out, they just wanted a nudge that felt like magic:

• “Your grocery bill was $240 higher this month – still want to hit your travel goal?”
• “RRSP deadline is in 3 days. You said you’d contribute $6,000. Should I move the funds now?”
• “Your asset mix drifted to 77/23. Want to rebalance?”

Turns out the advice clients needed wasn’t emotional support – it was gentle accountability, at scale.

What Went Wrong for Advisors

1. Undifferentiated service

The truth? Many planners offered the same cookie-cutter advice:

• Invest in index funds
• Save 20% of your income
• Defer CPP
• Take your RRIF minimums

AI could do that in its sleep. And if your “value” was a basic plan in a PDF with a nice cover page, your days were numbered.

2. Inflexible pricing

When AI was offering dynamic, always-on planning for $10/month, the “$3,000 for a plan” model started to feel like asking someone to pay for a map in Google Maps world.

The advisors who thrived?

They offered a niche. Or coaching. Or complexity. Or empathy with context.

The ones who didn’t? Their clients quietly wandered off. Some never said goodbye.

3. Financial literacy wasn’t a moat

For years we shouted, “They ought to teach this in school!”

But financial literacy isn’t something you memorize – it’s something you need when life throws you a money curveball.

And AI did that better than any planner with a whiteboard.

What We Lost

We lost Sunday-night emails from worried clients asking, “Can I really afford to retire?” We lost conversations about legacy, about guilt, about spending money on yourself when you’ve always been the saver.

AI could optimize the withdrawal schedule. But it couldn’t look someone in the eye and say, “Yes, you can afford to take your grandkids to Disneyland.”

The Takeaway

AI didn’t destroy financial planning. It just made it… optional.

For most people, most of the time, automated advice was good enough. Cheap. Fast. Personalized. Instant.

But for those inflection points – retirement, the sale of a business, a divorce, the death of a parent – there was still a seat at the table for human advice.

It was just a smaller table.

What to Do About It (Before It’s Too Late)

That future? It’s not inevitable.

We’re not there yet. You’re still reading this in a world where AI is just starting to flex its financial muscles, and human advisors still play a meaningful, trusted role.

But the writing is on the wall – and depending on who you are, here’s how to prepare:

If you’re a reader/client

You don’t have to wait until AI takes over to get better financial advice. Start now by:

• Asking better questions: Whether it’s a planner or ChatGPT, the quality of advice depends on the quality of your input.
• Getting organized: Track your spending, know where your accounts are, and keep your goals front and centre.
• Using AI as your co-pilot: Don’t be afraid of the tech. Use it to run projections, compare TFSA vs. RRSP, model CPP at 65 vs. 70. Then decide if you want a human to review your plan – or your mindset.

If you’ve ever said, “They ought to teach this stuff in school,” good news: AI might finally be the teacher we needed. One that’s available when you need it – not years before or decades too late.

If you’re a financial planner

AI won’t replace you… unless you let it. Future-proof your practice by:

• Going deep, not broad: Specialize. Find a niche. Get incredibly good at solving specific problems AI can’t generalize away.
• Becoming the translator, not the calculator: Don’t just deliver numbers. Help clients make sense of them – and act on them.
• Layering in empathy: Your value isn’t the plan. It’s the permission you give clients to enjoy their money, support loved ones, and sleep at night.

And maybe most importantly:

Partner with AI, don’t fight it. Let it do the grunt work. Let it find the gaps. Let it save you time – so you can spend more of it being human.

Final Thoughts

Financial planning is changing fast. And while it’s tempting to dismiss the rise of AI as hype or overreach, the better question is: What if it actually works?

Because if it does – if it really can deliver just-in-time literacy, real-time decision support, and affordable access at scale – then planners and clients alike need to rethink what great advice looks like in the late 2020s and beyond.

Not the death of planning.

Just the end of business as usual.