In the Age of AI and Talent Gaps, Financial Institutions Need More Women Advisors

Closing the gender gap in the corporate world has been a decades-long struggle with limited success. In wealth management, the progress has largely stagnated: In 2013, the percentage of female certified financial planners was 23%; by 2023 it had only inched up to 24%.^1,2 Women remain underrepresented in wealth management — and throughout financial services — despite the abundance of research suggesting that hiring and promoting women is good for business. Research by McKinsey and LinkedIn finds that companies ranking in the top quartile for gender diversity are more likely to see above-average profitability.³

To date, there is still significant potential upside opportunities for proactively cultivating female talent that is yet to be realized by firm leaders. But a trio of newer conditions might just change that. The rise of artificial intelligence, the transfer of wealth to more women, and the advisor talent shortage are all key reasons why financial services firms need to redouble their efforts to train and recruit female advisors.

How AI Elevates the Human Touch Imperative

Let’s start with the technology that’s at the tip of everyone’s tongue: AI. As in other disciplines, AI is playing an increasingly greater role in wealth management, whether it’s helping advisors design portfolios or providing financial advice directly to consumers through roboadvisor platforms. As wealth management becomes more automated and algorithm-driven, however, the human touch will become a go-to competitive advantage.

Consumer surveys bear this out: In a 2025 study by Northwestern Mutual, nearly half of respondents said they preferred that their advisors know how to use AI tools. But they also said they trusted human advisors over AI for advice on everything from retirement planning to financial savings tips — often by a 3 to 1 margin.⁴

The human touch, and the trust it fosters, is where women advisors shine. According to research by the CFP Board Center for Financial Planning, women advisors consistently demonstrate greater soft skills, including clear communication, listening without judgement and getting to know their clients well. They excel at establishing the kind of human connection that AI can’t replace.

As More Women Control Wealth, Women Advisors Are in Greater Demand

The value of the human connection is even more pronounced among female wealth management clients. The CFP research found that female consumers listed empathy as among the top qualities they preferred in financial advisors. Research by New York Life illustrates what that empathy looks like: 63% of women surveyed said it was important that an advisor “knows what it means to be a woman in their specific situation.” The study concluded that for these and other reasons, there’s a “noticeable appetite” by women to work with women advisors.⁵

This preference is especially significant in the context of anticipated wealth transfer projections that predict women will soon take charge of more assets than ever before. Of the $124 trillion expected to change hands in the next quarter-century, roughly 70% will be inherited by women — either as surviving spouses or as heirs to older generations.⁶ If more women control wealth and women tend to prefer female advisors, the case for enriching the ranks of female advisors becomes blindingly clear.

Addressing the Broader Advisor Talent Shortage

The renewed focus on the wealth management gender gap comes at a time when financial institutions are grappling with another gap: the overall talent gap. Producing advisors declined 12% year-over-year in 2024, with a projected industry shortfall of 100,000+ advisors in coming years, according to Cerulli research.⁷

This talent shortage means institutions can’t afford to leave any stone unturned when it comes to sourcing and recruiting new talent. The disproportionately low number of women in the advisory field today suggests that they could prove a rich source of new talent, helping replace the predominantly male wave of retiring advisors.

How Institutions Can Be Proactive in the Building the Ranks of Female Advisors

Educational institutions and professional organizations can help encourage women to consider wealth management careers through programs and targeted outreach. But financial firms have a part to play, too, and it starts within their own offices: Institutions can build powerful internal pipelines by considering non-traditional female candidates who already work for them. Sales assistants, bank tellers and retail managers might all have what it takes to be great advisors — especially if they demonstrate problem-solving and relationship-building skills.

Financial institutions can also find success recruiting and retaining women by proving that they’re a great place to work. It’s about ensuring that being a woman at a financial institution means more than just checking a box for diversity surveys — it’s about real, structured support and representation. Women should be appropriately represented on advisor councils, employee engagement committees, and other bodies. They should have a voice in determining remote and return-to-office work policies as well as family leave and flexible work arrangements. They should have employee resource groups (ERGs) where they feel comfortable sharing concerns and seeking guidance.

Hiring and elevating more women into financial advisory roles isn’t just the right thing to do — it’s a business imperative. Here at LPL Financial, we’re proud to support women advisors through our own ERG and through our Women Financial Advisor Community. Our commitment to bringing more women advisors into our industry is part of why we have the highest number of women financial advisors among wealth management firms in the industry⁸ … and we can’t wait to welcome more into the fold.