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Shift from AI Exploration to Execution in DC Consulting

Recent findings from T. Rowe Price's sixth annual Defined Contribution Consultant Study indicate a transformative period in the landscape of retirement planning advisory. The study, which encompasses insights from 36 leading consultant and advisory firms managing over $10.3 trillion in DC plan assets, sheds light on several emerging trends in the retirement space including the swift transition from artificial intelligence (AI) evaluation to its concrete execution.

Key Findings

AI Adoption

The research reveals a marked decline in firms describing their use of AI as merely exploratory. In 2025, 44% of surveyed firms stated they were still in the evaluation phase; that figure has plummeted to just 14% a year later. Currently, the primary applications of AI among consultants include:

• - Operational efficiency (78%)
• - Client preparation processes (67%)
• - Client outreach efforts (47%)

However, the adoption of AI tools in deeply human-centric areas—such as plan design and participant engagement—remains significantly lower, at just 12% and 9%, respectively. The study also highlights that firms with established AI governance use these technologies approximately 50% more frequently across various functions.

Rising Interest in Private Assets

Moreover, private assets are gaining traction within the defined contribution sector. The majority of consultants anticipate a rise in the incorporation of private assets as part of managed, multi-asset solutions over the next 12 to 24 months. Notably, the expectation regarding the inclusion of private credit in DC plan investments has seen a significant increase. The likelihood rating escalated from 1.7 in 2024 to 2.6 in 2026 (on a scale of 1 to 4). Similarly, perceptions regarding private equity also improved, with its implementation likelihood rising from 1.6 to 2.2 during the same period.

Interestingly, cryptocurrencies are anticipated to feature in DC plans primarily through self-directed brokerage windows rather than as core offerings, viewed positively by 75% of respondents.

Emphasis on Personalization and Advice

Another focal point uncovered by the study is the significant emphasis on personalized advice and support. As revealed by the research, the need for personalized retirement income strategies is growing in importance. While support for using managed accounts as a Qualified Default Investment Alternative (QDIA) remains limited, there is burgeoning interest in dynamic QDIA implementations, suggesting potential for enhanced personalization of retirement solutions.

Findings suggest pre-retiree communications, tailored retirement planning tools, and managed accounts focused on individual objectives are crucial for engaging retired participants. Between 2021 and 2026, the support rating for these initiatives rose substantially across the board, indicating an evolving recognition of the importance of comprehensive retirement support.

Other Observations

The study further details the consultants' approach toward active and passive investment strategies:

• - There exists a strong preference for active management in fixed-income investments among advisors, driven by the necessity of credit selection in sub-asset classes.
• - Additionally, evolving preferences for target date solutions indicate a trend toward blend strategies that leverage both active and passive investments to optimize cost efficiency and performance.
• - The interest in financial wellness programs is also increasing, with 66% of respondents looking into recordkeeper-provided solutions.

Conclusion

The insights gathered from T. Rowe Price’s Defined Contribution Consultant Study paint a clear picture of an industry in flux—one that is increasingly leveraging technological advancements while responding to the dynamic needs of retirement participants. As AI becomes more integrated into business practices, and as interest in private assets continues to grow, the importance of personalized advice will likely shape the future of DC plans significantly. The full implications of these findings will be vital as consultants and advisors work toward enhancing the retirement landscape for millions of Americans.

For additional details, readers can access the Executive Summary of the study on T. Rowe Price's website.