Netwealth Group Ltd (ASX: NWL) shares have had a difficult 12 months.
The wealth management platform company's shares are down around 40% over that period and fell to a fresh 52-week low of $18.29 on Wednesday.
Here's why I think the lower share price has created an opportunity for investors with this S&P/ASX 200 Index (ASX: XJO) share.
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This ASX 200 share is still growing
The first thing I would look at is whether Netwealth's weaker share price reflects a weaker business.
I do not think that is the case.
Netwealth finished FY26 with $135.7 billion of funds under administration, up more than 20% over the year. It also continued attracting strong net inflows and gaining market share.
That tells me financial advisers and their clients are still putting more money onto the platform.
As those assets grow, Netwealth has more opportunities to earn administration and investment-related revenue from the same expanding customer base.
I think that remains a strong long-term foundation.
AI has added a concern
Artificial intelligence (AI) has recently given investors something else to think about.
Anthropic launched Claude for Financial Advisors on 14 September, providing wealth managers with specialised data connectors and workflow tools. That followed OpenAI launching its own financial industry offering just days earlier.
I can understand why that has caused some concern.
If powerful AI tools can automate more of the research, administration, and client work carried out by financial advisers, investors may question how much value traditional wealth technology platforms can continue adding.
I think it is too early to assume AI will simply replace platforms such as Netwealth.
Financial advisers still need to administer client assets, meet regulatory requirements, execute investments, and keep large amounts of sensitive financial information organised. AI could change how that work is done, but I think established platforms can also use the technology themselves.
The latest acquisition makes more sense in that context
Netwealth's acquisition announced this week is particularly interesting for that reason.
The company has agreed to buy Paradino, which operates an AI-enabled workflow and automation platform for financial advisers.
Its technology can assist with areas such as documents, meeting notes, client communications, and other administrative work.
The acquisition itself is not large enough to transform Netwealth overnight.
But I like what it says about the direction of the business.
Rather than watching AI develop from the sidelines, Netwealth is bringing more of that capability into its own adviser technology offering.
If AI can help advisers save time and manage more clients efficiently, I think it could ultimately strengthen the value of the wider Netwealth ecosystem rather than undermine it.
Why I would buy before sentiment improves
There are still risks.
Netwealth is investing heavily, margins could face some near-term pressure, and AI could reshape parts of the financial advice industry faster than expected.
But this ASX 200 share is still growing assets, attracting inflows, and investing in technology that could keep its platform relevant as adviser workflows change.
At $18.29, I think the 40% decline has created a much more attractive entry point.
Foolish takeaway
I would be comfortable buying Netwealth shares at current levels.
AI has added a new source of uncertainty, but I do not think it removes the need for wealth platforms or the long-term opportunity in financial advice technology.
If the ASX 200 share can combine its existing platform with better AI tools while continuing to attract client assets, I think today's weaker sentiment could eventually look like a good buying opportunity.
