New Delhi, Feb. 18 -- Financial advisor Douglas Boneparth chuckled when he saw the sharp selloff last week in wealth management stocks over concerns about tax planning updates to an artificial intelligence tool from fintech Altruist. Boneparth, who has been using Altruist's AI-powered Hazel platform for several months, says the market was finally waking up to something he has been experiencing firsthand: AI is beginning to transform the wealth management industry.

"The hype is real," says Boneparth, founder of Bone Fide Wealth, a financial advice firm in New York. Although the tax planning functionality is still new, its value is already apparent, he says. "That's an area where you can put hard-earned dollars back in your clients' hands....