Clients Don’t Mind AI—They Mind When It’s Used Poorly

AI for Advisors newsletter

An advisor recently told me a long-time client shared news of a cancer diagnosis. He wanted to respond with care and empathy, but sat frozen at the keyboard, unsure how to begin. Then he remembered he could ask AI for help.

Over the past year, I’ve had similar conversations with advisors who say AI helped them find the right words in delicate moments—whether supporting a client through illness, divorce, or loss.

To me, these instances of AI assistance just demonstrate, again, the amazing power and utility of AI when advisors tap AI as a co-intelligence.

This isn’t about advisors outsourcing emotion. It’s about them getting unstuck, saying what matters, and deepening the client relationship.

So, when I saw a recent article on FinancialPlanning titled “Using AI to write that client email? Think twice,” I paid close attention.

The article draws on a Morningstar study that explores how investors respond when they find out their advisor used generative AI to write an email to them. The implication is that using AI for something as sensitive as personal communication could erode trust.

But based on what I’m seeing firsthand (teaching smart AI use to more than 120 advisors in the last 12 months), that conclusion doesn’t hold up. In fact, it misses the bigger point. Here’s why.

1. The call for ‘transparency’ oversimplifies what clients actually want

The FinancialPlanning article suggests that clients must be able to tell that an email was written by a human—and that if they suspect otherwise, trust and willingness to pay for advice drops.

But that’s not quite what the Morningstar study says.

What the research actually found is that clients are sensitive to how and why gen AI is used. When it’s used carelessly—like sending what’s supposed to be a personal note without warmth or context—clients recoil. But when it’s used to support, not replace, meaningful human communication, reactions are far more measured.

In fact, investors explicitly said they’re OK with AI involvement when it’s efficient, accurate, and frees their advisor to do more human work. That’s the nuance the article missed: transparency is important, yes—but only when AI takes center stage. If it’s quietly helping behind the scenes, clients care more about the quality of the message than the tools used to draft it.

In Morningstar’s words: “Although Gen AI should not be used to replace human connection, it can help advisors improve their personal relationship with clients, both by freeing up time by assisting in other tasks and by acting as a tool to facilitate more meaningful discussions.”

Indeed, the Morningstar study focused on the roughly three in 10 investors who had some level of concern about their advisor using AI.

Viewed from another angle, it’s somewhat notable that nearly seven in 10 investors seemingly aren’t concerned. Yet that’s not surprising when you consider national and international surveys of knowledge worker usage in the workplace put the numbers in the 50%-75% range. Your clients are likely using AI in similar ways that you use it.

2. The article confuses ‘personalized’ with ‘hand-crafted’

In one example, the Morningstar study asked participants how they’d feel if their advisor used AI to write a personalized email to a client commenting on the client’s vacation. The result? A drop in trust and relationship warmth.

But here’s the problem. That scenario seemed structured to test an AI-only approach. No context. No human touch. Just “your advisor used Gen AI to send you a personal message.” Of course that fell flat.

The real takeaway isn’t “never use AI to help with personal messages.” It’s “never send clients a 100% generic AI message in place of your personal input and empathy.” Advisors who understand this use AI not as a shortcut, but as a shaping tool.

Here’s where I’ve found advisors may successfully use AI to help put together a tricky client email: Give your AI context about the situation—then use AI to draft a thoughtful message in your own voice.

That’s personalization with integrity. And it beats the alternative of staring at a blank screen and defaulting to something generic because you couldn’t find the right words.

It’s a great example of a principle I often reinforce in the intro to our AI for Advisors class that draws from Ethan Mollick’s excellent book Co-Intelligence. One of his key takeaways for working with AI: Be the human in the loop. That means keeping yourself firmly in charge of tone, judgment, and relationship context. AI can help draft. But you edit, rewrite and decide what gets sent.

3. The real risk isn’t AI—it’s using it poorly

The article warns that clients may question your expertise if they find out you’re using AI to help write. Morningstar’s report shows that’s partly true—but only under specific conditions.

If clients believe you’re using AI instead of expertise—or that you’re using it to cut corners—they’ll likely bristle. But when AI is framed as a back-office enhancement, clients respond more favorably. In fact, when they saw advisors using generative AI to save time and focus on client relationships, trust scores recovered.

As with any technology, the key is positioning. If a client observes that you use AI to help summarize tax law changes or write cleaner, faster follow-ups, you could simply say: “That’s how I make sure I stay responsive and accurate—so I have more time to focus on what really matters.” That’s not diminishing your value. That’s proving it.

4. Clients’ views on AI are evolving—fast

The article leans on current investor discomfort as a reason to avoid AI-powered writing. But that underestimates the speed of normalization.

The Morningstar study itself shows this shift. Clients who viewed AI as a tool for efficiency responded more positively across the board. And notably, American investors were the most comfortable with generative AI—even when told explicitly it was used.

We’ve seen this play out before. Years ago, advisors and clients were wary of financial planning software doing the math and writing the plan.

But as they saw how the software improved accuracy, speed, and efficiency, most became comfortable with it. Now, they expect it. The same shift is happening again with AI and in your favor if you learn how to use it well.

The H.E.A.R.T. rubric for personal emails

When you’re faced with writing a challenging personal email and want assistance from your AI model, consider this rubric as a way to get a useful first draft:

• H = Human first: Begin by recalling the client’s situation. What emotions might they be feeling? What would you say out loud if you were sitting across from them? Ground your AI prompt in your real intent.

• E = Empathetic prompting: Frame your prompt with warmth in mind. Include personal details (with discretion), reflections on previous interactions, and your tone preference (e.g., “calm and caring,” “reassuring and respectful”).

• A = Assist, don’t automate: Let AI give you a thoughtful draft—but remember, it’s your job to review and revise. Don’t let the machine do all the talking.

• R = Refine the voice: Read the draft out loud. It’s possible it’s too wordy, though very good. Cut some and make sure it sounds like you? Is the tone sincere and clear?

• T = Take one last look: Pause before sending. Ask: Does this reflect my values? Will it make the client feel seen and supported? If so—send.

A prompt to use:

Draft an empathetic message to a client who just shared that they’ve been diagnosed with a serious but treatable cancer. Make the tone warm and supportive. Mention that you’re thinking of them and available if they need anything during this time. Avoid sounding overly formal or generic. Make it sound like something I would say.

AI draft (Refined with H.E.A.R.T.):

Notice how the AI provides a useful starting point—but the final product still feels unmistakably human. That’s the point. You’re still the one holding the pen.

Use AI so well no one notices

Here’s what I’ve learned from more than 3,000 hours training with AI. The best use of AI in client communication is invisible.

You don’t need to label every email “AI-assisted.” You just need to ensure it’s accurate, empathetic, and unmistakably you. That means:

• Using AI to save time, not cut corners.

• Personalizing messages with context, not just placeholders.

• Reviewing every draft before it goes out—just as you would with any assistant’s work.

If you do that, your clients won’t care whether a machine helped you draft the note. They’ll care that you remembered their vacation, encouraged them when markets dipped, and followed up with clarity and care.

That’s the relationship they value. AI just helps you maintain it.

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