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

Could Iress private equity sale finally shake up the back-office world?

Could Iress private equity sale finally shake up the back-office world?

‘Even if IFAs had the budgets, there is a huge amount of inertia at play here’

Justin Cash
clock 12 September 2025 • 5 min read
I know a man who can: Advisers urged to adopt consumer signposting tool

I know a man who can: Advisers urged to adopt consumer signposting tool

Answer to enquiries from prospective clients’ advisers can’t help

Jenna Brown
clock 10 September 2025 • 2 min read
FCA: No plans for 'extra' AI regulations

FCA: No plans for 'extra' AI regulations

‘We will rely on existing frameworks’

Eve Maddock-Jones
clock 10 September 2025 • 2 min read