Why did St. James's Place shares drop significantly?

St. James's Place shares dropped 12.6% after the U.S. fintech firm Altruist launched an AI-powered tax planning tool, raising concerns about AI competition in the wealth management sector.

What is Altruist's new AI tool designed to do?

Altruist's AI tool is designed to help financial advisors produce fully personalized tax strategies in minutes, specifically for the U.S. tax system.

Do analysts believe the sell-off in wealth management is justified?

Some analysts suggest the sell-off may be an overreaction, arguing that the holistic nature of wealth management prevents AI from fully replacing advisors and that traders are replaying existing narratives.

Home / Business and Economy / St. James's Place Plummets on AI Competition Fears

St. James's Place Plummets on AI Competition Fears

11 Feb

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Summary

St. James's Place shares fell 12.6% due to a new AI tool.
Altruist's AI aims to provide personalized tax strategies quickly.
Analysts suggest the market reaction may be an overreaction.

St. James's Place Plummets on AI Competition Fears

St. James's Place saw its shares plummet by 12.6% on Wednesday, marking a significant decrease since February 2026. This sharp decline occurred after U.S. fintech firm Altruist unveiled an AI-powered tax planning tool designed to produce personalized tax strategies rapidly. The tool's introduction sent ripples through the wealth management sector, with other firms like AJ Bell and Quilter also experiencing stock drops.

While the U.S. financial sector also experienced a sell-off following Altruist's release, some analysts, like RBC's Ben Bathurst, suggest that the market's reaction might be excessive. Bathurst posits that the holistic nature of wealth management means AI tools are unlikely to fully replace human advisors. He believes traders are replicating past market reactions from other industries rather than reflecting fundamental shifts in the wealth management sector's core principles.

St. James's Place, which manages over 220 billion pounds, has itself explored AI productivity tools for its nearly 5,000 financial advisors. The company indicated that the Altruist tool is specifically designed for the U.S. tax system and may not directly apply to the U.K. market. Nevertheless, St. James's Place acknowledges the growing role of AI, expressing support for developments that complement the work of financial advisors.