Shares in UK wealth management firms fell sharply this week following the launch of a new AI-driven tax planning tool by Los Angeles-based start-up Altruist, underscoring growing investor anxiety about how artificial intelligence could reshape the advisory sector.
The share slump, which extended across both sides of the Atlantic, has prompted even established firms to question how quickly they can adapt to the technology.
On Tuesday, shares in St James’s Place fell 13 per cent, AJ Bell dropped 8 per cent and Quilter declined 5 per cent as traders reacted to Altruist’s announcement that its Hazel AI platform could generate fully personalised tax strategies by analysing client pay stubs, account statements, 1040 forms, emails and other documents ‘in minutes’, the firm claims.
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Investors interpreted the move as a potential threat to the traditional fee structure and operational model of wealth managers, echoing the earlier decline in shares of US firms including Charles Schwab, Raymond James and LPL Financial.
The market dip may signal broader shifts within the wealth management sector. AI tools such as Hazel have the potential to streamline processes, improve efficiency and ultimately compress the fees traditional advisory firms can charge. The rapid adoption of such technology also raises questions about how quickly established organisations can adapt.
The reaction in the UK mirrored investor behaviour in the US, where Altruist’s tool triggered declines of between 7 and 9 per cent among listed wealth managers. Even banks with sizeable wealth divisions, such as Morgan Stanley, were swept up in the sell-off.
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So what exactly is Altruist, and why has it provoked such a market reaction?
What is Altruist?
Founded by Jason Wenk, Altruist operates a wealth management platform that uses advanced technology to help independent financial advisers run their practices. Its Hazel AI platform is designed to automate many core advisory tasks, from account opening and portfolio management to billing and reporting.
According to the firm, the platform can also capture and summarise discussions, draft follow-ups, answer queries instantly, prioritise tasks and help generate personalised tax plans.
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The latest feature – AI-powered tax planning – allows advisers to generate personalised tax strategies rapidly, using scenario modelling to assess the impact of bonuses, asset sales, retirement transitions or lifestyle changes in real time.
‘Tax planning is one of the most powerful ways advisers can improve outcomes, but it’s also slow and mentally draining, especially in the busy tax season,’ Wenk said. ‘Hazel’s tax planning feature flips that dynamic. It expands what a single adviser can handle, raises the bar on outcomes, and makes average advice a lot harder to justify.’
Hazel’s capabilities suggest that firms built around AI could serve significantly more clients than traditional advisory businesses, potentially securing a substantial efficiency advantage.
However, despite the share slump, it may be premature to write off traditional firms. Demand for in-person advice — particularly among complex or UHNW clients — remains robust. Charlie Hoffman of HSBC Global Private Banking, the UHNW wealth manager at the 2025 Spear’s Awards, told Spear’s that building a service that puts the client ‘at the centre of everything you do’ is precisely what enabled him to grow his client book into the tens of billions of dollars.
The launch of Hazel also forms part of a broader trend of AI solutions being deployed across sectors such as insurance, property and financial comparison services.
