AI fears are hammering shares of brokers like Charles Schwab and LPL — but the humans aren’t panicking

Shares of companies like Charles Schwab and LPL Financial are tanking on fears that AI will replace its stock brokers – but the humans aren’t panicking like the headlines would have you believe, On The Money has learned.

Indeed, reports of the demise of the stock broker in your Rolodex are being greatly exaggerated by these recent – and admittedly large and lucrative – market bets against them, based on my chats with the actual humans who perform this vital market function.

Let’s start with what’s happening on the ground as AI disruption crushes shares of Schwab, down 13% in just a few days before bouncing back a bit; Ditto for LPL another brokerage firm that links investors up with its stable independent financial advisers.

Raymond James, a traditional “wire house” that employs around 8,000 brokers has seen similar declines in the share price, all on the bet that people with money to invest will give up their broker because artificial intelligence can find value cheaper and faster.

That’s the market bet; the reality on the ground is far different. My sources tell me they haven’t lost a single customer during the AI inspired broker-stock rout. In fact, they’ve seen more engagement with their clients about figuring out how to trade through the AI tumult.

“I’ve had zero people leave,” said one broker who asked not to be named. “My clients are pretty wealthy so I can’t imagine they’re just going to trust AI with tens, maybe hundreds of millions of dollars.”