Wealth Firm Leaders: Slow Down on AI Adoption
Executives at wealth management firms should resist the urge to rush into artificial intelligence tools, according to panelists at the RIA Edge Nashville conference. The technology landscape is changing too fast to justify major commitments right now.
Eden Ovadia, CEO of FINNY AI, told the audience that advisors who invested heavily in AI over the past two years may need to replace those systems within months. "The rate of change is increasing so quickly that if you invested the last 24 months in adopting technology, well, you may have to redo all of that every single few months," she said.
The panelists did not recommend sitting idle. Instead, they suggested a measured approach: run pilots, request demos, and sign short-term contracts before committing resources.
Speed Isn't Always an Advantage
Mike Bisaro, CEO of the $1.2 billion RIA StraightLine, said he once felt like a "dinosaur" for moving cautiously on technology. He has since learned that rapid adoption often backfires. "We are paying attention, and we are thinking about how to do this," he said. "There were people that may have been faster … but the project didn't work out because they didn't know where they were aiming."
When evaluating vendors, Ovadia recommended looking beyond the product itself. Assess the team, understand their roadmap, and confirm their direction matches your firm's needs. "Your vendors are now an extension of your technology team, and you want to make sure they are completely aligned to your vision," she said.
Jason Borek, chief growth officer of The Pinnacle Group, acknowledged that fear can paralyze decision-making. But it can also drive responsible action. His firm maintains "a healthy dose of fear" while continuing to innovate, he said.
Data Quality Comes First
All panelists stressed that clean, organized client data is essential before deploying any AI tool. Without it, new systems simply pile on top of existing problems.
"The data integrity is key," Borek said. "That's the new currency in the space. If that's not set up, and systems and processes aren't set up, it's just going to stack on top of that."
Compliance and Security Matter
In a separate panel on compliance and cybersecurity, Leslie Shaver, founder of My RIA Lawyer, urged advisors to treat AI adoption like meeting someone online. "Do your due diligence. Understand how AI is using your data and develop the right processes and procedures," she said.
Shaver recommended establishing strong cybersecurity fundamentals before introducing AI tools. "If you're going to wade into this pool, go into the shallow end first," she said.
Sid Yenamandra, CEO of SurgeONE.ai, a compliance platform for wealth managers, warned that free or low-cost AI tools may expose client data to fraud. He advised firms to create clear procedures for any AI use. "You can use AI to be a 10xer," he said. "But you have to have a framework and guardrails."
Mark Michael Astarita, head of strategy and operations for Greenboard, a compliance operating system, said advisors should not avoid AI entirely. Competitors will adopt these tools, and responsible use beats inaction. "You should always be aware of the risks, you should be knowledgeable about them-but your competitors are going to use these tools. Your job is to use them responsibly," he said.
For managers overseeing technology decisions, the takeaway is straightforward: test before committing, align vendors with firm strategy, secure your data first, and establish compliance guardrails. Speed matters less than direction.
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