Every few months, someone sends me an article about how artificial intelligence is going to make financial advisors obsolete. Usually the article is written by someone who’s never actually sat across the table from a business owner deciding whether to sell the company they built over 25 years. That context matters.
Don’t get me wrong — I’m a big believer in AI. I’ve written about the parallels between machine learning and winning football strategies, between algorithmic thinking and chess, between pattern recognition and rock climbing. Technology is genuinely transforming how we work, and the companies that ignore it will get left behind.
But there’s a fundamental difference between what AI does well and what a good advisor does well. And confusing the two is dangerous.
What AI Does Brilliantly
AI is exceptional at processing large volumes of data, identifying patterns, and generating predictions. In our industry, that means better portfolio scoring, faster due diligence on public data, and more efficient market analysis. We use AI-powered tools at FLOCK every day. They save us time. They make us smarter. They help us serve our clients better.
Machine learning models can analyze a decade of collection performance data in minutes. They can flag anomalies that a human analyst might miss. They can score thousands of accounts faster than any team could manually. These capabilities are real, and they’re valuable.
What AI Can’t Do
Last year, I worked with a founder who was considering three different offers for his company. On paper, one offer was clearly the best — highest price, cleanest terms, fastest close. Any algorithm would have flagged it as the obvious choice.
But after spending time with the buyer’s team, something felt off. The cultural fit wasn’t there. The buyer’s integration plan would have dismantled the very team that made the company valuable. The founder sensed it too, but he was struggling to trust his instincts over the numbers.
We went with a different buyer. Lower price. Longer timeline. But eighteen months later, that company is thriving. The original employees are still there. The founder sleeps well at night. No model would have predicted that outcome.
The Advisory Premium
The value of a good advisor isn’t data processing — it’s wisdom. It’s knowing which questions to ask when everyone else is focused on the answers. It’s understanding that a deal isn’t just a financial transaction; it’s a human event with consequences that ripple through families, employees, and communities.
AI will make advisors better. It will free us from tedious analysis so we can focus on what actually matters: understanding people, building trust, and making sound judgments in ambiguous situations. The advisors who embrace AI as a tool — while doubling down on the irreplaceably human parts of their craft — will thrive.
The ones who think they can be replaced by a chatbot? They probably can be. But that says more about them than it does about the technology.
– Michael Flock