European wealth managers hit back after fears AI will make them obsolete - FT

European wealth managers hit back after fears AI will make them obsolete - FT

European Wealth Managers Push Back Against AI Disruption Fears

Shares in European wealth management firms faced sharp declines in early February 2026 as concerns over artificial intelligence (AI) disruption rippled through the sector. UK-based St. James’s Place and Quilter saw their stocks fall by 13.25% and 6.1%, respectively, following the launch of an AI-powered tax-planning tool by U.S. fintech startup Altruist. The tool, capable of automating tax strategy recommendations, intensified investor fears that AI could reduce demand for traditional financial advisors.

The selloff extended across European financial services, with Italian asset managers Banca Mediolanum and Azimut dropping 5.6% and 3.8%, while online platforms like flatexDEGIRO and Swissquote also declined. Analysts noted the reaction mirrored broader volatility in U.S. wealth management stocks, such as Raymond James and Charles Schwab, which fell sharply after Altruist's announcement.

However, European firms and industry experts have pushed back against the narrative that AI will render human advisors obsolete. St. James’s Place emphasized that its 5,000 advisors leverage AI tools to enhance—not replace—client interactions, with director Alexandra Loydon highlighting the U.S.-specific nature of Altruist’s offering. Quilter’s CEO Steven Levin similarly argued that human trust and relationship-building remain irreplaceable, while the firm's revenue model—focused on platform fees and asset management—limits exposure to advisor-related risks.

RBC Capital Markets analysts suggested the selloff reflected short-term positioning rather than fundamental shifts, cautioning that AI’s role in wealth management is likely to be complementary. Jefferies’ Julian Roberts echoed this, noting AI's current limitations in replicating empathetic, experience-driven advice.

While the sector remains under pressure, European wealth managers are framing AI as a tool to augment advisor capabilities rather than a threat to their business models. Investors will likely monitor how firms balance technological adoption with the enduring value of human expertise.

Reuters, February 11, 2026: Reuters, February 11, 2026
Morningstar, February 11, 2026: Morningstar, February 11, 2026