Why Referrals — and Human Relationships — Matter More Than Ever in the Age of AI
I recently came across this post about executive coaching being paused and replaced by AI. It’s a conversation I know is happening in boardrooms and client meetings across the financial services industry:
Can AI replace the trusted advisor in general and how does this affect my beloved financial advisor profession?
As a best-selling author on referrals and the 2024 Exit Planning Institute Member of the Year, I see this as a pivotal moment for all of us who serve clients — not because we’re at risk of being replaced, but because we’re being called to elevate what makes us irreplaceable.
Of note: mediocre advisors will be ruthlessly culled by AI. Be exceptional or be replaced.
You need to stop asking what AI can do for you and start asking what it cannot do for your ideal clients.
Our Clients Choose Us — They Don’t Have To Work With Us
Financial advice in particular and advisory services in general, are a choice. Our best clients are not obligated to work with us — they choose us, again and again, because of the trust, insight, and human connection we bring to the table.
To emphasize this further: your ideal clients are choosing to add a human being (you) into their decision-making process. This means that your target market is smaller than you realize and getting smaller as AI grows in popularity.
AI can process data. It cannot replace the nuanced understanding, empathy, and creativity that comes from real relationships.
The Power of Referrals in a Changing World
In my latest book, Can I Borrow Your Car?, I share how financial advisors can lower both the perceived and actual risk in the referral process, making it easier for clients and centers of influence to introduce us to others.
The key?
Stop begging for referrals, or only asking for yourself. Start giving value and building trust.
Think like a successful farmer: plant the right seeds in the right soil at the right time, nurture (fertilize and protect) relationships, and grow your network with intention to meet your goals.
Set clear targets: know what an ideal client really is, know how many clients you need, double your meeting goals based on your closing percentages, and always have more potential clients than you can handle.
Your Brand Is Your Moat
As AI becomes more sophisticated, your personal brand — built on referrals, reputation, and real results — will set you apart. Share your vision with trusted contacts, engage your network early, and make yourself the obvious choice in your field.
None, and I mean none, of your compliance-approved content about your products and services will save you. Nobody wants to see another post about IRA contributions…ever.
The Future Belongs to the Human Advisor That Is The Obvious Choice
Everything is changing, and fast. But here’s the great news:
Referrals and authentic relationships are going to be even more powerful.
You will thrive — not in spite of AI, but because of WHO you are. You do need to work on a strategy to help your ideal clients find you and nothing is more fun than referrals for that.
Let’s keep building networks that no algorithm can replicate.
I know that successful sales professionals and business owners face unique challenges as their career matures. My goal is to help people like you manage the transition from producer to successful business leader while enjoying life now. To learn more about how we do that, subscribe to Can I Borrow Your Car on Substack.
You can also:
💡 Connect with Mike on LinkedIn
🔗 Visit Can I Borrow Your Car website
🔗 Explore Strategic Referral Team website
📕 Purchase your copy of Can I Borrow Your Car?
🎙 Subscribe to the Why Should I Refer You? Podcast