AI can help us save time, organize information, identify trends, and improve workflows. What it cannot do is replace the experience, judgment, empathy, and fiduciary mindset that define us as advisors.  Clients rely on us to understand their goals, consider the nuances of their situations, and act in their best interests. Those responsibilities remain firmly with us, regardless of the technology we choose to use.  As advisors, we are accountable for our recommendations, communications, and decisions. AI may assist us in our work, but it does not assume our responsibilities. Below we will discuss important factors in the use of AI in your practice.

When firm approved tools are used appropriately, AI can be a valuable business tool. Examples include Summarizing meeting notes and preparing draft follow-up communications; (Jump; Vega Minds)

• Assisting with CRM updates and administrative workflows; (Jump; Vega Minds) 
  
• Summarizing meeting notes and preparing draft follow-up communications; (Jump; Vega Minds)
  
• Organizing Client information; (Precise FP)
  

“Firm” lines in the sand

Just as important as understanding what AI can do is understanding what it should never be used to do.

The following practices are inconsistent with our expectations and should be avoided:

• Entering client-identifying information or other non-public personal information into public or unapproved AI tools;
• Using AI-generated content without verifying its accuracy and appropriateness;
• Adopting new AI applications or vendors without completing the firm's due diligence and approval process;
• Allowing AI-generated output to replace professional analysis, suitability review, or fiduciary judgment;
• Using technology in a manner that places your interests ahead of those of the client.
  

One theme consistently emerging from regulatory discussions is the importance of understanding the tools we use. You do not need to be a data scientist to use AI responsibly. However, you should be able to explain, in straightforward terms, what a tool is designed to do, how you use it in your practice, and what role your own review and judgment plays in the process. Likewise, cybersecurity and data protection remain paramount. Protecting client information is one of our most important responsibilities, and any technology we use must support that commitment.

As AI capabilities continue to evolve, consider asking yourself five simple questions before using a tool:

• Is this an approved technology?
• Does this involve any client-identifying information?
• Have I verified the accuracy of the output?
• Can I clearly explain how this tool was used?
• Would I be comfortable discussing this process during a regulatory examination?

If the answer to any of these questions gives you pause, reach out to Compliance for guidance.

AI offers tremendous opportunities to enhance efficiency and strengthen the client experience. As an industry, we are still learning how these technologies will shape the future of advice. What should not change are the principles that define who we are: acting in our clients' best interests, exercising sound professional judgment, communicating honestly and clearly, and safeguarding the trust our clients place in us. Technology will continue to evolve. Our commitment to doing the right thing for our clients, our firm, and one another will remain constant. By embracing innovation thoughtfully and responsibly, we can confidently navigate this next chapter together.

For more information read this guidance issued earlier this year AI and Due Diligence