Women & AI: The Hidden Gap We Need to Talk About

Big changes are happening in fintech. This week, Ellevest announced a major shift, transferring its robo-advisory accounts to Betterment. What does this mean for women investors? Plus, new research reveals that women are using AI tools 25% less than men—an alarming trend with long-term career implications.

Let’s dive into these trends and what they mean for the future of finance and technology.

Ellevest Transfers Robo-Advice Business to Betterment: What It Means for Women Investors

This week, the fintech world is buzzing with a major move—Ellevest, a wealth management firm built to serve women investors, is transferring its robo-advisory accounts to Betterment. Founded by Sallie Krawcheck, Ellevest’s mission was clear: close the gender wealth gap and empower women to take control of their financial futures. But this shift signals a new chapter, as the company pivots toward financial planning and wealth management for high-net-worth and ultra-high-net-worth clients—those with at least $500,000 to invest.

What does this mean? Essentially, Ellevest is doubling down on personalized services for big players, while Betterment, a leader in digital investing, will take over its digital-first clients.

Betterment, already serving over 900,000 customers with more than $55 billion in assets, has grown through similar moves, such as acquiring Wealthsimple’s U.S. advisory accounts in 2021 and Goldman Sachs’ Marcus Invest accounts in 2024.

Ellevest’s CEO and CIO, Dr. Sylvia Kwan, explained the decision:

Why This Move Matters

The reaction to Ellevest’s decision has been mixed. Some critics argue that this shift undermines the firm’s mission of making finance more accessible to all women. And it’s understandable—Ellevest’s robo-advisory platform was a game-changer for those who wanted an easy, values-based investing solution.

But let’s be honest: this move wasn’t made lightly. Krawcheck has been a trailblazer in financial inclusion, and while this pivot may seem like a step back, it could also be a strategic move for long-term impact. Ellevest alone couldn’t close the gender wealth gap, and now, new opportunities emerge for fintech startups to step in and serve underrepresented groups.

What’s Next?

Ellevest’s transition leaves a noticeable gap—one that forward-thinking fintechs can seize. Women earning less than $500K are still underserved, and the fintech that truly understands this demographic will go beyond just automation.

Future leaders in this space must tap into community-driven finance, combining investing with education, mentorship, and digital tools that reflect women’s unique financial needs. A new wave of women-led fintech startups is already rising to meet this demand, leveraging technology to create a more inclusive financial ecosystem.

But Ellevest’s impact isn’t disappearing. With $2 billion in assets under management and 3 million women investing through their platform, the company has already paved the way for change. And now, as they shift focus, the opportunity exists for their wealthy clientele to support the next generation of women-led startups—not just through philanthropy, but as active investors in female-founded ventures.

That’s how real change happens.

For a deeper dive, check out my interviews with Sallie Krawcheck and Betterment CEO Sarah Levy, where we explore their journeys and leadership philosophies. You can also find these conversations in my book Fintech Feminists and my latest podcast episode.

The AI Gender Gap: Why Women Are Using AI Less—and How to Change It

A recent study from Harvard Business School has uncovered an emerging issue: women in the workplace are using AI tools 25% less than men. This “AI gender gap” isn’t just about preference—it has real implications for career growth and professional opportunities.

What’s Behind the AI Gender Gap?

One key factor is perception. Women report feeling more cautious about using AI, fearing they might be seen as less competent or even unethical. The research suggests that women often face harsher judgments when using AI tools like ChatGPT, leading many to avoid them altogether.

A 2024 survey by the Federal Reserve Bank of New York found that while half of men had used generative AI in the past year, only about a third of women had done the same. Across multiple studies, the adoption rate of AI tools among women was consistently 10% to 40% lower than men.

Why It Matters

AI is shaping the future of work, and hesitancy to adopt it now could lead to long-term career disadvantages. Historically, women have been underrepresented in technological advancements, often sidelined during critical periods of innovation. The AI revolution is no different—if women aren’t actively engaging with these tools, they risk being left behind in an increasingly digital workforce.

Bridging the Gap: Women-Led AI Platforms

A promising solution? Women-led AI initiatives. Platforms like Diem and Claude are reimagining AI with a focus on privacy, security, and user experiences designed with women in mind. These alternatives offer a way to bridge the AI gender gap by providing environments where women feel more confident and empowered to use AI as a career tool rather than a liability.

The key takeaway? The AI gender gap isn’t just a statistic—it’s a call to action. If AI is the future, then women must be a driving force in shaping it.

Final Thoughts: The Future of Fintech and Inclusion

From Ellevest’s pivot to the AI gender gap, one thing is clear: fintech and technology are evolving rapidly. And as these shifts take place, the question isn’t just who will lead, but how they will lead.

Women-focused fintech solutions aren’t disappearing—in fact, they’re growing stronger. And as AI reshapes the workplace, it’s crucial that women are part of the conversation from the start.

Change is happening. The real question is: Are we ready to drive it?

Stay ahead of the curve, and let’s keep this conversation going. Reply to this email with your thoughts—I’d love to hear from you.