How not to fall for the AI plausibility trap

'Trust in financial advice takes years to build. It has never been easier to put at risk'

clock • 3 min read

A single past business review arising from systematic suitability failure can cost more than the AI technology that caused it, warns Tadhg Buckley

Trust in financial advice takes years to build. It has never been easier to put at risk. Run the experiment yourself. Give an agentic artificial intelligence (AI) system a client fact-find and your approved product list. Ask it to generate a suitability report. The output will be fluent, fast and indistinguishable from competent adviser work.  Now stress-test it. Give it a client whose capacity for loss is low, whose objective is capital preservation over three years, and whose portfolio holds legacy equities. See whether the system recommends trimming them or constructs a plausible n...

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