Advisors lean on outsourced models as AI adoption surges
The shift away from self-built models
While self-built model portfolios remain the most common construction method overall, frequent use declined in 2026 and a growing segment of advisors say they have stopped creating models themselves entirely.
More than half of respondents (54 percent) reported using model portfolios offered by asset managers, while just over one-third (35 percent) indicated using third-party models from other providers.
Those under 45 who reported always or often using asset manager model portfolios rose from 20 percent in 2024 to 29 percent in 2026, according to Escalent’s data. The pattern aligns with broader industry findings on model portfolio adoption that have pointed to efficiency and scalability as primary drivers of the outsourcing trend.
“Technology and outsourced portfolio management aren’t replacing advisors – they’re changing how advisors spend their time and deliver value for their clients,” said Meredith Lloyd Rice, lead report author and a vice president in Escalent’s Cogent Syndicated division. “With these tools at their disposal, advisors are able to devote more time to providing personalized guidance, building trust and helping clients navigate an increasingly complex financial landscape.”
For generative AI, usage among advisors surged to 68 percent in 2026, up from 49 percent the prior year. Top applications included productivity enhancement, client meeting support, investment research, and summarizing market insights.
