Building The Billion Dollar Business Special Edition with Michael Kitces, Part 2

In this special edition of Building the Billion Dollar Business, Ray Sclafani, Founder and CEO of ClientWise, welcomes Michael Kitces back for part two of their conversation. They cover the questions shaping the next era of advisory firms: whether AI can finally solve the industry’s integration problem, where the time AI saves actually goes, and why the CRM is positioned to remain the hub of the modern firm. Michael shares Kitces Research findings showing that staff leverage still predicts advisor productivity more than technology spend does, and explains why the entry-level bar for future advisors is rising. He describes clients who check their advice with ChatGPT as a sign of deeper engagement, walks through the custodial economics behind Vanguard’s acquisition of Altruist, and explains why in-person marketing is outperforming digital as client acquisition costs fall. Firm leaders will come away with a clearer picture of where to invest next: in team design, delegation, deeper client conversations, and growth strategies built to scale. WHAT YOU’LL LEARN IN THIS EPISODE 1. Why Michael Kitces believes the CRM, not the AI platform, will remain the hub of the advisory firm 2. Where AI time savings actually go, and why AI is driving deeper planning rather than bigger client counts 3. How staff leverage continues to predict advisor productivity, and what that means for building the next generation of talent 4. The custodial economics behind Vanguard’s acquisition of Altruist and what it could mean for asset managers and advisors 5. Why in-person marketing strategies are outperforming digital ones as client acquisition costs fall THE 2027 LIGHTNING ROUND One tech tool to try. An AI note taker such as Jump or Zocks, valued for the client dossier it builds before your next review meeting. Most overhyped trend. The idea that AI will help every advisor serve 200-plus clients. Most underrated planning strategy. Tax-savvy tools, including tax-loss harvesting with direct indexing and tax-aware long-short strategies for concentrated positions. One article every advisor should read. Kitces research on what actually drives referral outcomes. Michael Kitces, MSFS, MTAX, CFP®, CLU, ChFC, RHU, REBC, CASL, is the Chief Financial Planning Nerd at Kitces.com and Head of Planning Strategy at Focus Partners Wealth, an independent RIA with more than $50 billion in assets under management. He is a co-founder of XY Planning Network, AdvicePay, New Planner Recruiting, fpPathfinder, FA BeanCounters, and NexGen, and hosts the Financial Advisor Success podcast. A recipient of the Financial Planning Association’s Heart of Financial Planning award, Michael is dedicated to helping financial advisors become better and more successful. Building the Billion Dollar Business is hosted by Ray Sclafani, Founder and CEO of ClientWise, the financial services industry's leading executive coaching and team development firm for elite advisors and wealth management teams. Ray Sclafani is also a Wealthies CEO of the Year Finalist (2026) and Luminaries Thought Leader of the Year Finalist (2026). Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube https://www.clientwise.com/