How advisors can harness AI responsibly

The question is no longer if financial professionals should use artificial intelligence in their practice, but how. Today’s clients are curious, yet sometimes cautious about new technology. To build trust and strengthen client confidence, advisors must set clear ethical guidelines for AI use. This allows advisors to position the technology as a tool that enhances rather than replaces their expertise and identify where it adds value to their practice.

AI as the natural next step

AI is the next step in a long journey of integrating technology into financial services. Just as Zoom became an indispensable tool during the pandemic, AI is on track to become just as critical for our daily practice. Adopting new tools has always been an important part of the business to provide the best service possible. Positioning AI in this context allows advisors to communicate with clients in a way that helps alleviate discomfort. When service is built on process over product to deliver client success, incorporating new tools to deliver enhanced results will naturally fall into place.

Lead with curiosity

When discussing AI with clients, start by cultivating curiosity. Ask them: Have you used AI before? If so, how are you using it?  What role do you see it playing in your world? These questions will spark conversations that can act as a natural bridge to describing how AI is used within the firm.

Advisors should avoid treating AI like a sales pitch. Instead, discuss it as part of your existing technology suite and another way to deliver better, faster and more tailored solutions. In my practice, we’ve found that many of our clients are also wrestling with the best ways to use AI. Yet they see it the same way my firm does: a tool to further enhance their work. By listening before explaining, you can ease concerns, foster trust and position yourself as a partner navigating the landscape alongside them.

Put ethics first

According to a recent MDRT survey, 71.2% of U.S. consumers with advisors have at least some trust that advisors would use AI in an ethical manner. Yet it is important to remember AI doesn’t decide whether it is being used ethically, advisors do. A knife that can heal in the hands of a surgeon, can cause harm in the hands of the wrong person. AI is no different. Responsible use begins with understanding how technology works, what its limitations are, where the information is being pulled from and how accurate it is.

Responsible use also requires safeguarding client data by maintaining strong cybersecurity practices and working only within systems designed to protect sensitive information. Compliance must remain top of mind, with AI-generated insights and content treated with the same level of scrutiny as all other advisor-produced work. Most important, advisors should remember that AI is meant to supplement their expertise and not replace their professional judgement.

The “CIAO” framework

For those looking to start or continue implementing AI, here are four key domains, captured by the acronym CIAO, where I suggest advisors apply AI to their practice.

• Content: Advisors aren’t content creators by trade. AI is a fantastic way to expedite content delivery and summarize information into more streamlined, engaging communications.
• Information: We’ve shifted from searching for information (SEO) to searching for answers (AEO). AI has the power to rapidly provide clear insights and synthesize information for both advisors and clients.
• Analytics: Perhaps the most useful area for advisor AI-use. AI can help with scenario-testing, synthesizing data in a matter of seconds, so long as you provide it with strategic prompts.
• Operations: Often underused for this domain, AI can assist in creating training materials, knowledge transfer and workflow automation that help teams collaborate more effectively and new employees onboard more efficiently.

 

AI is enhancing nearly every aspect of advisory practice. At its core, financial advising has always been about guiding people through uncertainty. Integrating AI simply adds a new layer to that responsibility. By showing clients that technology can serve as a bridge to clarity rather than a barrier, advisors not only strengthen relationships today but also position themselves to stay ahead in a profession that will look very different a decade from now.

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