Advisors catering to the ultra-wealthy are raising a cautionary flag: despite the buzz surrounding artificial intelligence, it may not fundamentally change how they attract new clients.
Market research companies have been touting AI as the revolutionary tool for identifying hard-to-reach ultra-high-net-worth clients. However, according to leaders in prestigious advisory firms, this claim lacks substance.
To begin with, while AI tools can indeed uncover valuable data and contact details about ultra-affluent individuals, that represents only part of the challenge. Matthew Fleissig, CEO and co-founder of Pathstone—a registered investment advisory firm managing an impressive $182 billion in assets—articulated that the mere act of sending a cold email is unlikely to result in a response from potential clients whose wealth exceeds $100 million. He remarked, "I can’t imagine they would respond positively to a cold outreach asking for their financial details."
Fleissig emphasized that referrals often stem from building personal relationships. For instance, he shared a poignant example where Pathstone arranged a private jet in less than an hour for a client needing to reach Albany, New York, to see their ailing mother. "These kinds of exceptional services are what truly help us grow our business," he stated. "We focus on creating impactful moments."
He further noted that AI-driven client prospecting solutions haven’t lived up to their expected transformative potential. "These databases have existed for ages, and now there’s just an AI layer added to mine that data," he explained. "Often, it boils down to using similar strategies to aggregate publicly available data or data you can purchase and providing lists of names. We can manage that process ourselves at this point."
A growth executive from a prominent national Registered Investment Advisor (RIA), who wished to remain anonymous, mentioned having participated in at least 20 demonstrations of AI client prospecting tools in the last six months. He pointed out that many of these tools rely on widely accessible large language models such as Claude and GPT. "It feels like they're just repainting an old canvas with a new brush, claiming their information is superior. Should I invest $100,000 in their services or collaborate with my IT team to develop a similar solution at a fraction of the cost?" he questioned.
Andrew Douglass, head of growth at AlTi Tiedemann Global, expressed skepticism regarding the competitive edge offered by non-exclusive data sources. He noted that when their firm attempted to reach out to clients using these databases, they often found that potential clients were already working with other advisors or had been contacted by numerous firms prior.
For AlTi, a significant portion of organic growth—40% from client referrals and 30% from personal networks—has been nurtured over the past five years. An additional 30% comes from networking with professionals such as estate lawyers and accountants who interact with clients experiencing liquidity events, like inheriting wealth or selling their businesses.
Douglass criticized the common industry approach which states, "Our minimums are set at $25 million, thus anyone with $25 million in liquid assets makes a suitable client." He believes such a strategy fails in the long run. He stated from the Heckerling estate planning conference in Orlando, Florida, "Our strategy focuses on being recognized as subject matter experts. Consistently engaging in professional spaces like Heckerling and providing real value is the most effective way to expand our business."
While word-of-mouth referrals are valuable, they are not always scalable and can be slow to yield results. Douglass highlighted that the sales cycle for ultra-high-net-worth clients can extend beyond 12 months. Nonetheless, firms like AlTi are prioritizing quality over sheer numbers. Their annual goal is to onboard 25 to 30 new clients in the U.S., potentially increasing their assets by $1.5 billion to $2 billion.
Eden Ovadia, the co-founder and CEO of Finny—a startup specializing in AI client prospecting—acknowledges the skepticism she frequently encounters. Since launching Finny in late 2023, Ovadia has positioned AI prospecting as a supplement to traditional methods rather than a replacement.
She explained that high-end advisors often utilize Finny to promote exclusive events to targeted audiences. For example, an advisor wanting to invite prospects to a Miami Heat game can leverage Finny to find individuals in the real estate sector who also have an interest in the team. Additionally, she mentioned that Finny can help identify clients who might require guidance following significant life changes, such as those who recently purchased properties valued at $5 million or more near Jackson Hole, Wyoming.
"There’s definitely a bit of skepticism we need to overcome when speaking with ultra-high-net-worth firms that prefer deeply personalized, bespoke services," Ovadia noted. "I completely understand that perspective. The aim here is to provide insights into your clients or prospects that even you may not be aware of."
Finny can also monitor current clients for signs of dissatisfaction, such as searching for investment advice online, Ovadia added.
Fleissig expressed enthusiasm about clients discovering Pathstone via AI platforms like Gemini or ChatGPT. He reported that in the last two weeks alone, Pathstone received five inquiries from clients valued at over $100 million through AI search engines.
While Douglass admitted that AI hasn’t revolutionized the way AlTi Global acquires new clientele, he remains open to possibilities. "If someone presents a more effective solution, we're certainly eager to see what the market has to offer," he stated.
