RIAs Using AI Are Hiring More Staff, Not Cutting Jobs

Registered investment advisors deploying artificial intelligence are expanding their workforces rather than downsizing them, according to new research that challenges widespread assumptions about AI's impact on financial services employment.

Firms that disclosed meaningful AI use in regulatory filings grew headcount by 15% between April 2025 and April 2026, nearly double the 8% growth rate at firms without such disclosures, according to the 2026 RIA Market Monitor released September 3 by Astraeus and Pirker Partners.

The study analyzed Form ADV Part 2A filings from 6,384 independent private wealth RIAs as of March 2026. These SEC-mandated disclosure documents require firms to accurately describe their operations and material business risks.

Why it matters

The findings contradict the common narrative that AI adoption leads to immediate workforce reductions. Instead, early data suggests firms are in an "infrastructure phase" where AI creates demand for operations staff to implement, supervise, and maintain new systems. This pattern may inform strategic planning for RIAs considering AI investments and offers a more nuanced view of technology's near-term employment effects than headlines typically suggest.

Adoption concentrated at largest firms

Only 6% of independent private wealth RIAs disclosed any use of artificial intelligence, machine learning, or algorithmic tools in their filings. However, those firms collectively managed approximately 11% of industry assets under management.

Size drives adoption. Among RIAs managing between $5 billion and $25 billion, 16% disclosed AI use, compared with 7% of mid-sized firms and 5% of smaller practices. At enterprise and large RIAs, non-advisory operational staff increased by a median of 14.2%, more than double the 6.7% growth rate for advisory employees.

"The firms moving fastest with AI are hiring people, investing in operational infrastructure, and building the capabilities necessary to support more sophisticated businesses," said Jon Stevenson, co-founder and president of Astraeus. "At this stage, AI appears to be creating capacity rather than replacing it."

Productivity gains with caveats

Among enterprise and large RIA adopters, assets under management per advisor grew by a median of 22% between April 2025 and April 2026, compared with 12% at same-sized firms without AI disclosures.

The researchers cautioned that AI-adopting firms were already growing faster than peers before widespread deployment, suggesting correlation rather than pure causation.

Current use cases favor operations

Nearly half of disclosing firms referenced AI for administrative efficiency, including note-taking, summarizing client meetings, updating CRM applications, and drafting documents. Investment research was the second most common category, cited by just over one-third of disclosing firms.

Fewer than 5% reported using AI as a direct input into asset allocation or security selection. Over half of enterprise, large, and mid-sized RIAs explicitly stated that AI does not make investment decisions.

Firms disclosing AI use were nearly twice as likely to offer private equity investments as non-disclosers and more than three times as likely to offer credit alternatives, reflecting AI's strength in processing complex, unstructured documents common in alternative investment workflows.

The report's authors noted that 42% of disclosures focused primarily on risks, likely reflecting legal counsel influence, meaning actual AI usage across the industry probably exceeds what appears in public filings.

Astraeus and Pirker Partners plan to update the RIA Market Monitor annually to track whether early adopters maintain their productivity edge and whether disclosure patterns evolve as AI use becomes more routine. The data was first reported by Investment News.