I was pleased to see this week that the Chartered Institute for Securities & Investments (CISI) has joined with other professional bodies in urging stronger governance on the ethical threats for financial professionals in using AI (Artificial Intelligence).

AI is both a boon and a threat.

It is no longer a pipe dream. I know many Financial Planning firms have told recently about how they are increasingly embedding AI in their firms and processes.

At the recent CISI conference, many Financial Planners spoke about their, mostly positive, experiences with AI.

AI can be used to help write reports, turn recordings into transcripts, help with marketing materials and a host of other things.

It can’t quite make a cup of tea but perhaps that’s coming one day. 

My own views on AI are slightly sceptical. I can see a lot of benefits and my own profession of journalism is embracing many of its uses but would we really want to read news stories produced only by an AI bot. Not sure about that one.

AI is being trumpeted as the answer to all problems, which it isn’t. It’s an emerging technology which needs careful handling, as the CISI and other professional bodies are now stressing.

It is perhaps true that too many firms have rushed into the AI boom without taking account of the ethical issues it raises.

The CISI has produced a checklist to help guide decisions and no doubt more guidance will follow.

One obvious concern is how data is used. If data is transferred from Financial Planning firms into AI systems how is that protected?

There have already been cases of people warning that their information or images have been ‘stolen’ by AI systems.

The CISI and other bodies took part in a recent Global Ethics Day (15 October) and I would applaud this initiative. Before it’s too late regulated firms using AI must have a clear AI policy to guide employees behaviour. AI is a powerful tool but with that power comes responsibility.

I suspect that many firms using AI have barely taken into account the ethical considerations of AI and they need to give ethics more attention.

According to a recent survey by the Personal Finance Society, a fifth (21%) of Financial Planning firms have already embedded AI into their business and this will rise. Some 56% of PFS members say they have already been experimenting with AI. It will not be long before AI is the rule, not the exception.

AI is not around the corner, it’s already here. It can be a powerful ally for the Financial Planning profession but only if handled with care and sensitivity. An AI scandal would set the sector back years.

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Kevin O’Donnell is editor of Financial Planning Today and a journalist with 40 years of experience. This topical comment on the Financial Planning news appears most weeks, usually on Fridays but occasionally other days.  Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Follow @FPT_Kevin 

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