Helping Clients Navigate AI Career Challenges By Building Financial Planning Resiliency: Kitces & Carl Ep 170

AI’s increasing development and integration in the workplace presents many opportunities for increased efficiency and production – and, with that efficiency, the potential for significant disruption to those working in highly-automatable industries. As these changes accelerate, many clients may begin to fear not just job displacement, but full-blown career obsolescence. Unlike a temporary market downturn, this type of uncertainty can feel more existential, raising difficult questions about professional identity and long-term viability.

In the 170th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards explore how financial advisors can support clients whose careers may be disrupted by the rise of artificial intelligence. While AI may or may not reach the level of job elimination that some fear, it does represent an irreducible uncertainty – a risk that can’t be fully defined or planned around, especially in fields such as law and software engineering. And when faced with such irreducible uncertainty, the most effective approach is not necessarily to aim for detailed prediction, but instead to focus on simplification, adaptability, and resilience. In this context, planning shifts from optimizing for known risks to preparing for unknown disruptions.

One core strategy is to simplify wherever possible – reducing discretionary spending, trimming financial commitments, increasing liquidity, and revisiting allocation choices with a focus on flexibility rather than long-term growth. For example, instead of maximizing tax efficiency through pre-tax retirement contributions, clients may choose to allocate more toward savings vehicles that can be accessed without penalties if needed. Shifting to more conservative, liquid investments can also create optionality to fund retraining, bridge career transitions, or launch entirely new ventures in less automatable fields. Similarly, clients concerned about AI-related disruption may opt to delay large purchases until there’s more clarity around how their industry will be affected.

Helping clients navigate AI-related disruption reinforces the advisor’s role not only as a financial expert but also as a trusted thinking partner. Clients facing career instability – or even a loss of professional identity – need space to voice their concerns and explore potential paths forward. Often, simple questions like, “What might happen next?” or “How would we need to prepare for that?” can open up space for meaningful reflection and reveal tangible next steps. In this way, advisors can help clients balance long-term uncertainty with shorter-term action – anchoring their sense of agency when outcomes remain unclear.

Ultimately, the key point is that it’s difficult to predict how AI will reshape specific career fields. For clients whose livelihoods may be at risk, advisors can work collaboratively to create an individualized, practical plan to reduce the financial strain of potential career disruption. That kind of planning can offer clients substantive peace of mind, ensuring that they understand their options amidst an ever-changing landscape – all while giving the advisor a chance to reaffirm their value in a rapidly evolving world!