Advice firms 'not at all' prepared for AI compliance activities

‘AI opens up a number of new compliance challenges’

Isabel Baxter
clock • 1 min read

The majority of advice firms are not prepared for artificial intelligence (AI) related compliance activities, NextWealth has found.

In its AI Index report released today (23 May), the firm noted that the use of AI opens several new compliance challenges including general data protection regulation, AI ethics and the compliance with Information Commissioner's Office rules. When asked about specific governance policies, readiness from advisers dropped further. The research found that 47% are ‘not at all' prepared for general AI policy or strategy, 26% are ‘slightly' prepared, whilst 9% said ‘somewhat' and 18% are fully prepared. When it comes to a clear guideline to AI implementation, 41% are not at all prepared,...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Technology

Why firms need a people-first approach to being tech-forward

Why firms need a people-first approach to being tech-forward

'Important that firms don't develop tunnel vision'

Tim Gillman
clock 07 June 2024 • 4 min read
Advisers told AI benefits will be reliant on their proactive engagement

Advisers told AI benefits will be reliant on their proactive engagement

‘This is now about the evolution to a full advice solution’

Hope Coumbe
clock 04 June 2024 • 2 min read
DIY or D2C: Is it all the same or do advisers know better?

DIY or D2C: Is it all the same or do advisers know better?

Some firms are beginning to embrace robo-advice to nurture younger clients

Darren Winfield
clock 31 May 2024 • 4 min read