AI Tax Tool Shakes Up Wealth Management Firms

Altruist's new AI-powered tax software sparks sell-off in Charles Schwab, Raymond James stocks.

Published on Feb. 10, 2026

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Wealth management firms like Charles Schwab and Raymond James saw their stocks tumble on Tuesday after startup Altruist announced a new AI-powered tax planning tool for financial advisors. The tool, called Hazel, can generate personalized tax insights and strategies, raising fears that it could disrupt traditional wealth management services.

Why it matters

The wealth management industry has been slow to adopt new technologies, and the introduction of an AI-powered tax planning tool threatens to upend the traditional advisory model. This could lead to increased competition, pressure on fees, and the need for wealth managers to rapidly adapt their services to stay relevant.

The details

Altruist, a Los Angeles-based wealth platform, unveiled Hazel, an AI-powered tool that can produce personalized tax insights and strategies for financial advisors and their clients. This new capability sparked a sell-off in shares of major wealth management firms like Charles Schwab and Raymond James, as investors fear the technology could disrupt traditional advisory services.

  • Altruist announced the new Hazel AI tax tool on Tuesday, February 10, 2026.

The players

Altruist

A Los Angeles-based wealth management platform that offers an AI-powered tax planning tool called Hazel.

Charles Schwab

A major wealth management firm whose stock price fell sharply after Altruist's announcement.

Raymond James

A wealth management firm whose stock also declined in the wake of Altruist's AI tax tool announcement.

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What’s next

Investors will be closely watching to see how wealth management firms respond to the threat posed by Altruist's AI tax tool, and whether they are able to develop their own innovative technologies to retain clients.

The takeaway

The introduction of AI-powered tools in the wealth management industry signals a shift towards greater automation and personalization of financial services. Firms that can quickly adapt and leverage these technologies will be better positioned to thrive in the changing landscape.