Betterment Rolls Out AI Account Tool

The new AI-powered tool is part of a broader strategic push by Betterment to cater to a younger, tech-savvy investor base. CEO Sarah Levy has emphasized the importance of technology in meeting the expectations of digital-first clients, particularly Gen Z and millennials. This demographic is increasingly comfortable with using AI for financial research, with over half of investors using generative AI for this purpose at least once a month. Betterment's AI strategy is bolstered by key acquisitions aimed at enhancing its technological capabilities. The recent acquisition of Rowboat Advisors, a portfolio management software company, will integrate advanced direct indexing and tax optimization tools into Betterment's platform for financial advisors. This follows other strategic acquisitions, including the automated investing business of Ellevest and Goldman Sachs' Marcus Invest accounts. The company's leadership team, which includes CEO Sarah Levy and President Mike Reust, who focuses on technology initiatives, is driving this expansion. The integration of Rowboat Advisors will also bring its founder, Iraklis Kourtidis, into Betterment's engineering leadership as Vice President of Portfolio Management, reporting to Chief Technology Officer John Mileham. This move into AI-assisted recommendations places Betterment in direct competition with other robo-advisors that leverage automation. Wealthfront, a major competitor, utilizes an automated financial advice engine called "Path" and offers features like stock-level tax-loss harvesting. Other platforms like Schwab Intelligent Portfolios and Fidelity Go also use algorithms for automated portfolio management and rebalancing. As of late 2025, Betterment managed over $56 billion in assets for nearly one million customers. The company's focus on technology-driven solutions aims to attract and retain a growing client base in an increasingly competitive digital investment landscape.