The Impact of Artificial Intelligence on Financial Services in 2025

May 16th, 2025

Estimated Reading Time: 7 Minutes

Artificial Intelligence (AI) continues to play a growing role in financial services. In 2025, more platforms, advisors, and investors are using AI to discover research, automate tasks, and personalize financial strategies. With this new development in technology, people have access to insights faster—and often at a lower cost than in previous years. But while AI is powerful, it works best as a tool, not a full replacement of an advisor’s guidance. Many investors still benefit from having a personal relationship with a financial advisor who understands their unique situation and goals. When used together, AI and human insight can support the development of a financial plan unique to your long-term goals.

Real-Time Insights

AI’s main strength lies in its ability to process large volumes of data quickly. Financial platforms use machine learning to scan market activity, economic trends, and risk signals in real time.

This allows investors to identify market trends, market risks, and real-time insights that would otherwise take hours to gather.

These tools can simplify the investment process by helping people stay informed without needing to monitor a large volume of sources constantly to understand current market updates.

Personalized Tools for Everyday Investors

AI is also behind the growing number of apps and platforms that offer custom financial advice. Today’s technology can be used to help support the building and management of investment portfolios based on personal factors like risk tolerance, time horizon, and financial goals.

Features commonly powered by AI include automated rebalancing; identifying applicable, tax-efficient strategies; and tracking progress towards retirement or savings goals.

Planning, Budgeting, and Daily Money Management

Beyond investing, AI tools can be used to assist everyday money management. Apps now include features that can monitor spending, forecast savings, and provide suggestions to improve financial health—all through the guidance of machine learning.

These tools can help with:

  • Monthly budgeting and expense tracking
  • Retirement savings projections
  • Debt payoff plans

Risk Monitoring and Security

AI also can play a role in detecting fraud and assisting the management of financial risk. Banks and fintech companies can use algorithms to monitor for unusual account activity and to assess portfolio vulnerabilities.

Examples include:

  • Real-time fraud alerts
  • AI-driven credit risk scoring
  • Automated compliance checks for firms

This tool can be used to help users identify risks and understand how to protect their personal information.

AI is Not a Replacement For Experienced Professionals

While AI can offer efficient, data-driven tools, it does not replace the value of a human advisor. Financial planning often involves emotions, values, family goals, and life changes—areas where a personal connection matters.

A human advisor can:

  • Understand the context behind your financial choices
  • Help you navigate complex decisions (like selling a business, managing inheritance, or planning retirement)
  • Offer support during uncertain or stressful market periods

Additionally, AI relies solely on the inputs it receives and data it has access to. As a result, it can provide inaccurate or outdated information or strategies. While AI is a rapidly expanding and evolving industry, it still requires fact-checking by human intelligence.

In this way, AI should be seen as a support tool, helping advisors serve clients better and helping provide individuals with insights to make informed decisions—without replacing the need for thoughtful, person-to-person financial guidance.

AI continues to change how financial services operate, offering faster insights and more accessible planning tools. But it’s most effective when paired with the guidance of a trusted advisor who can offer context, strategy, and support.

Key Points to Remember

Takeaways from this article include...

  • AI can assist the personalization and development of financial plans by gathering and consolidating information quickly.
  • Automated tools are widely available through apps and online platforms.
  • AI systems can assist security and fraud protection.
  • Human advisors still play a key role in creating long-term financial strategies.

By combining the precision of AI with the empathy and judgment of a human advisor, investors can build plans that are not only data-driven—but also deeply aligned with their personal goals.

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