Before advisors add any AI tool, they should pause and ask the smart questions: What recurring problems are we experiencing in our firm? Will this tool measurably improve those areas?

Abraham Maslow is often paraphrased as saying, “If all you have is a hammer, everything looks like a nail.” For many advisors, AI is beginning to feel like a hammer in desperate search of a nail, with no clear blueprint behind the swing.

A tidal wave of AI-named solutions is flooding the advisory space, promising breakthroughs and bleeding-edge capabilities. How do advisors know which solutions are truly effective, and which ones are simply expensive distractions that erode a firm’s margin and momentum?

A recurring conversation I’m having with advisors lately starts this way: “We just signed up for [insert AI tool here]. Now we’re figuring out how to use it.”

Usually, the tool was purchased during a conference, after hearing how “everyone’s using it,” and now the team is stuck trying to reverse-engineer its purpose. All the while, the monthly charges keep growing.

Sound familiar?

There’s no shortage of AI-powered products showing up in inboxes, ads, and throughout the roundtables, social circles, and overflowing hallways of conferences. Even the most level-headed, seasoned advisor can’t help but wonder, “Are we missing out on AI?”

Naturally, the buying inclination strikes hard when you hear other advisors mention the latest software or tech interface built with AI. Before you know it, the purchase is complete. Many advisors are now the proud owners of a product that likely isn’t intuitive or aligned with their firm’s specific needs.

My hope and intent are to help you avoid a similar fate.

Do advisors need AI or only automation?

Dare we ask, is AI the real answer that advisors are searching for today? I would argue that the financial-services space isn’t ready for AI nearly as much as it’s ripe for automation. What’s the difference between AI and automations for advisors?

Automation is reactionary: It triggers when an action occurs. AI, on the other hand, can make proactive decisions and generate insight without a direct prompt. If a lead fills out your website’s contact form, automation can send a templated response. Add AI to that workflow, and it can analyze the lead, pull additional insights, and craft a personalized reply without needing your intervention.

AI—particularly intelligent agents designed to operate independently, make decisions, and initiate action without human input—is the much-needed step beyond automation. However, there’s wisdom in following a “crawl, walk, run” approach to bringing your advisory firm into the AI age. Start by identifying which systems need better automation. Then, AI capabilities can be implemented with a clear purpose, not because of tech pressure.

Proactive advisors who carefully leapfrog automation into a fully agentic world will be in a prime position compared to the vast majority of the advisory space. The key is knowing what parts of your business need only automation and which are ready for a true AI-driven solution.

Avoiding the ‘subscription stack spiral’ of advisor tech

Buying an AI “solution” before solving a problem is how firms end up over budget, underwhelmed, and no closer to meaningful progress. This approach is already leading advisors to say, “I tried AI, and it didn’t work. I’m out.” The culprit is hiding in their bank statements.

Some advisors now have what I call a “subscription stack spiral.” This is a junk drawer of AI tools that aren’t being used but are still auto-billing every month. This often includes:

• A chatbot assistant that doesn’t sound like the advisor
• A content tool with a blank project dashboard
• A scheduling AI that’s barely used by the advisor, let alone their unlicensed support staff

The subscription stack spiral is what happens when firms buy tools without a clear use case, abandon them due to lack of results, then chase the next shiny platform to fix the last one. It’s a constant cycle of activity that never solves the real problem.

Tools alone are not the problem. Lack of clarity and context is. Thankfully, proactive advisors tend to lean into a more top-down approach. So what’s a smarter, savvier way to understand your needs before you buy AI?

Use case over utility

Buying AI without a use case is like getting a gym membership without a workout plan. The monthly charge reminds you that you have access. Without a sound strategy and execution, though, nothing changes.

There’s a better, more prudent way of leveraging AI to advance your firm.

Any conversation about AI needs to start with an advisor proactively asking, “What are the most pressing problems we need to solve inside our firm?” That question leads to others, like:

• What specific, recurring problem does your advisory firm face?
• Who is involved in this problem, and who is most affected by it?
• Maybe most importantly, what is it costing your firm in wasted time and energy, limited capacity, and missed opportunities?

If you want to implement AI into your firm, first identify and articulate a specific use case. Ask any fellow advisor what keeps them up at night, and you’ll likely hear:

• “We’re drowning in admin tasks that take time away from clients.”
• “Our new client pipeline is inconsistent from month to month.”
• “We deliver great results but struggle to clearly articulate our value through content.”

Those are real, specific, and solvable problems. You feel those responses because you’ve likely lived inside those situations. Those are the use cases that deserve solutions, not more subscriptions.

Once you’ve clearly defined the problem, you can measure what it’s already costing your firm in time, morale, and opportunity. The next logical step is to ask, “Where can AI help lighten this load?” Only then does it make sense to research tools, compare solutions, and invest in AI as an empowered extension of your business.

Start with the right question to solve AI use cases inside your advisory firm

When you reverse-engineer your AI stack based on real use cases, subscriptions suddenly become strategic investments instead of speculative costs. Instead of chasing what’s available, you can focus on what’s not working today:

• If you’re losing hours every week to manual note-taking, explore AI-powered notetakers for your client meetings. A good AI meeting assistant can provide transcription and summaries within minutes. Paired with a clear workflow, tools like Jump, Zocks, FinMate, Fireflies, and Fathom can deliver near-instant ROI.
• If your follow-ups with leads are inconsistent, consider AI-assisted email-sequencing tools tailored to relationship-based industries.
• If your team struggles to articulate your firm’s value, use AI to help draft clearer messaging, then refine it with the guidance of a trusted human expert.

One of the biggest opportunities right now is the chance to ask better questions about AI. The AI landscape for advisors is massive thanks to today’s tools. Before you buy AI, it’s worth articulating the right questions. Without clarity on the problems you’re trying to solve, even the best tech won’t fix the disconnect. The good news? Finding the right questions—and identifying the right problems—often takes only a small investment of time.

Buy tools like an advisor, not a collector

Collectors chase novelty. Advisors invest toward a fiduciary-driven duty to perform. Before adding another AI tool, pause and ask the smarter questions: What recurring problems are we experiencing in our firm? Will this tool measurably improve those areas?

With a clear use case and defined problems, AI can help you work more efficiently and deliver better results. Without that clarity, even the most popular AI tool is just another hammer looking for a nail.

The opinions expressed in this article are those of the author and the sources cited and do not necessarily represent the views of Proactive Advisor Magazine. This material is presented for educational purposes only.