By Mike Shannon, CEO & Cofounder at Impruve
Wealth management is at an inflection point. A McKinsey study released this month highlights a looming 100,000-advisor shortage by 2034, driven by mass retirements and an underdeveloped talent pipeline. Meanwhile, demand for wealth advice is surging, with the number of advised relationships expected to grow 28-34% over the next decade.
Advisors are busier than ever, yet the core problem isn’t just talent—it’s how advisors operate. Firms have squeezed productivity gains from teaming, workflow automation, and digital onboarding, but we’re at a point where incremental efficiency isn’t enough. The industry needs a step change.
Key Insights from McKinsey’s Report
- Severe Advisor Shortage Ahead – 38% of today’s advisors (110,000 professionals) will retire in the next decade, impacting firms managing 42% of total industry assets.
- Demand for Advice is Growing Rapidly – Investors are increasingly willing to pay a premium for human financial advice, with 80% of affluent households preferring human advisors over digital-only platforms.
- AI & Automation Must Scale Productivity – Next-gen tech like AI-driven client prep, automated portfolio adjustments, and AI-assisted lead generation can increase advisor capacity by 10-20%, equivalent to adding 30,000-60,000 advisors.
- The Industry Needs New Talent Pipelines – Firms must attract 30,000-80,000 new advisors over the next decade, tapping into career switchers, women, and structured internship pipelines.
Where Does This Leave RIAs & Firms Today?
After tons of conversations with RIAs and independent wealth managers, one thing is clear: many advisors feel stretched thin. The highest-growth RIAs aren’t waiting for the industry to solve the talent crisis—they’re actively leveraging AI, automation, and intelligent workflows to scale themselves.
At Impruve, we’re seeing three emerging shifts:
- From Talent Bottlenecks to Tech-Powered Scale – The most forward-thinking RIAs are automating low-value tasks (prep, follow-ups, compliance) so advisors can focus on deep client relationships and growth.
- From Manual Growth to Systematic Client Acquisition – AI-assisted lead scoring, referral tracking, and proactive engagement are becoming table stakes to keep up with demand.
- From Legacy Workflows to AI-Augmented Advisory – Advisors don’t want AI replacing them, but they do want tools that anticipate client needs, surface insights, and streamline decision-making.
The Path Ahead
Wealth managers have a choice: get caught in the talent crunch or build a scalable, AI-enabled advisory model now. The next generation of elite RIAs won’t just have more AUM—they’ll run fundamentally different businesses, with AI as a core pillar of growth.
At Impruve, we’re working with advisors to shape this future, bringing AI-powered solutions that help scale their time, optimize workflows, and drive growth. The firms that adapt now won’t just survive the industry’s advisor shortage—they’ll lead the transformation.