Market data firms have been actively promoting artificial intelligence as the tool that could unlock access to the elusive ultra-high-net-worth clientele. However, executives at prestigious advisory firms remain skeptical about the efficacy of these AI-driven strategies.
Matthew Fleissig, CEO and co-founder of Pathstone, an investor advisory firm managing $182 billion in client assets, expressed doubts about AI’s potential in client prospecting. While AI can generate data and contact details for individuals with significant wealth, he argues that securing clients involves much more than just having information. Fleissig recounted a specific instance where Pathstone successfully arranged a private jet for a client in dire circumstances. Such personal and impactful actions are what foster genuine relationships and ultimately drive business growth, not cold emails or data-driven outreach.
Fleissig criticized the startup hype surrounding AI, noting that the technology does little more than put a new label on long-existing database tools. “These databases have been around forever,” he said, emphasizing that effective client acquisition strategies have not fundamentally changed.
In a similar vein, a growth executive from a prominent registered investment advisory firm shared insights from his experiences testing AI prospecting tools. He noted that many of these tools deploy large language models like Claude and GPT, which do not offer any significant differentiation. Instead of investing heavily in such AI platforms, he suggested that firms could develop their own solutions far more cost-effectively.
Andrew Douglass, head of growth at AlTi Tiedemann Global, echoed these sentiments, indicating that nonexclusive data lacks a competitive edge and undervalues the importance of personal connections. He pointed out that most of AlTi’s growth stems from referrals and relationships built through networking with professionals, such as lawyers and accountants, who are closely tied to clients experiencing life transitions. Douglass emphasized that targeting the right clients requires a nuanced understanding of their needs rather than simply having a minimum asset threshold.
Despite the challenges, he acknowledged that word-of-mouth referrals, while slow to materialize, provide depth and quality that cold outreach often cannot achieve. AlTi aims to add only a small number of clients—about 25 to 30 each year—but these clients can significantly impact their asset base, providing an influx of up to $2 billion.
Amid skepticism, Eden Ovadia, CEO of the AI client prospecting startup Finny, conveyed her vision of AI as a complementary force, rather than a replacement for traditional relationship-building efforts. Ovadia shared examples of how advisors can use Finny to identify potential clients based on their interests and recent life transitions, such as major property purchases. This targeted approach could also be leveraged to invite clients to exclusive events, enhancing the personal touch often favored by ultra-high-net-worth individuals.
Fleissig noted that while he has reservations about AI’s role in client acquisition, he has seen positive outcomes through AI platforms like Gemini and ChatGPT, which have led to new inquiries from clients with substantial wealth.
While Douglass maintained his open-mindedness about future AI advancements, he reiterated that true client engagement often remains rooted in personal connections and industry expertise. The advisory landscape is evolving, but the importance of personalized service remains a cornerstone of success in attracting ultra-high-net-worth clients.
