AI knocked down the stock prices of American banks and insurance companies

Sharp decline in asset‑management company stock prices
Against the backdrop of a new AI tool for financial planning, U.S. exchange‑listed companies in the asset‑management sector lost a significant portion of their share value. Investors fear that artificial intelligence could displace traditional advisors and change the rules of the game just as it has with software developers, private lenders, and insurance brokers.

Company Price drop Final price (Feb 10)
Raymond James Financial -8.8% $158.5
Charles Schwab -7.4% $99.25
LPL Financial Holdings -8.3% —
Morgan Stanley -2.5% —

* For Raymond James, this is the worst day since March 2020.

* Only one of Charles Schwab’s twenty‑four analysts recommended a sale.

What caused the drop
Altruist announced the launch of an AI platform designed to help financial advisors create personalized strategies and documents (account statements, etc.).

* Founder and CEO – Jason Venk, former Morgan Stanley employee.
* COO – Mazi Bahaduri, previously worked at Pimco Investment Management.

Altruist’s leadership, with deep understanding of Wall Street operations, is confident that their product can transform the traditional financial advisory model. Nevertheless, investors worry that AI solutions could “take a hit” in this area as well.

How analysts are reacting
Many experts believe that part of the sell‑off is driven by an impulsive market reaction, and that the real risk from AI tools may be overestimated.

* Wilma Berdis (Raymond James Financial) said: “The fears are completely exaggerated.” She believes that in the long run people will still prefer to entrust their money to a person rather than an algorithm.

Thus, despite today’s sharp price decline, most analysts expect traditional advisors to remain in demand and AI’s influence to be limited.