Financial advisors want AI spending to show up in revenue

Record AI spending is moving into the part of the cycle where someone has to show the receipts.

A new set of Fidelity Investments Canada polls found Canadian financial advisors are watching for evidence that AI spending is turning into revenue, adoption, and better business performance as major technology companies report earnings.

That scrutiny should sound familiar to technology leaders carrying their own AI budgets.

Among advisors polled, 42% said stretched valuations were the biggest risk to AI-related investments over the next 12 months. Another 27% pointed to AI adoption falling short of expectations.

The numbers advisors are watching this earnings season are just as telling. Revenue growth tied to AI products and services ranked first at 42%, followed by corporate guidance at 21%, AI-related capital expenditures at 18%, and profit margins at 17%.

“To date, much of the excitement around AI has been driven by investment and expectations for what the technology could deliver,” said Chris Pepper, vice-president of corporate affairs at Fidelity.

“Now, advisors are increasingly focused on what companies are actually showing in their results. They’re looking for evidence that AI is driving growth, adoption and business outcomes as they guide clients through the next phase of the story.”

The polling was conducted July 21 and 22 during FidelityConnects webcasts, with sample sizes ranging from 318 to 449, measuring sentiment among participating advisors rather than Canadian businesses themselves.

The longer-term view remained positive. Fidelity found 84% of advisors still considered AI an attractive investment theme in the early stages of its growth cycle, while 8% said it was overhyped.

Where they expect the opportunity to emerge is also relevant. While 34% pointed to AI infrastructure and semiconductors, 43% said the bigger opportunity lies with companies across sectors using AI to improve productivity and drive growth.

“What we’re seeing through the research is that advisors remain optimistic about AI’s long-term potential for clients,” said Pepper.

Fidelity’s press release quoted one advisor, emphasizing the importance of keeping a human in the mix. 

“AI should enhance the advisor-client relationship, not replace it,” they said. “The future belongs to advisors who use AI to become more efficient while delivering more human, strategic and trustworthy advice.”

For CIOs and tech leaders, the poll offers a useful view of what the people evaluating public companies are beginning to demand from AI spending. Deployment alone gives them very little to work with. Numbers are needed, attached to revenue, adoption, margins, and the capital required to get there.

Final shots

• 42% of advisors are watching AI-linked revenue growth most closely
• Slower-than-expected adoption ranked behind valuations as the second-largest AI investment risk
• The pressure is shifting toward measurable business results, which puts more weight on how technology leaders define success before spending starts