As more financial advisors utilize artificial intelligence in their practices, they now have additional guidance to help them adapt to the technology.
The Certified Financial Planner Board of Standards announced that it has published the Generative AI Ethics Guide: A Checklist for Upholding the Code and Standards.
The guide, part of an ongoing series of resources for CFP® professionals, was developed to assist them in the effective use of generative artificial intelligence in their services. According to the CFP Board, it provides a checklist to help protect confidentiality, verify the accuracy of material generated by AI, and maintain compliance with privacy laws. The guide also highlights the need to confirm that the use of AI does not jeopardize professional integrity or lead to conflicts of interest.
“When wielded with care and responsibility, AI has the power to amplify expertise, unlock efficiencies and enhance the value financial advisors bring to their clients,” said CFP Board CEO Kevin R. Keller, CAE. “The Generative AI Ethics Guide helps CFP® professionals integrate AI into their practices while staying true to CFP Board’s Code of Ethics and Standards of Conduct.”
The board noted the benefits of generative AI for financial advisors in helping them run their practices more effectively while also giving them more time to strengthen client relationships and provide personalized services, needs that cannot be met solely with the use of AI.
The Generative AI Ethics Guide addresses ethical issues that may arise when incorporating AI into financial planning. It outlines practical steps for CFP® professionals to address privacy concerns, data integrity and potential biases, helping maintain the trust and quality clients expect.
The guide points out that AI can assist with tasks such as research and content refinement but cannot replace the expertise, judgment and care of CFP® professionals. CFP Board’s Consumer Sentiment Survey — Trust, But Verify found that investors have more confidence in advice generated by AI after it its verified with a financial planner.
In addition to the ethics guide, the CFP Board is taking additional steps to help financial advisors integrate AI, including the formation of an external AI Working Group comprised of financial and technology leaders. They will explore how AI is transforming the field of financial planning and what it means for firms, advisors, clients and stakeholders across the industry. “The Working Group will assess AI’s impact, develop future scenarios and provide actionable recommendations to help ensure that CFP Board and its stakeholders navigate this evolving landscape ethically and responsibly while harnessing AI’s full potential,” according to the board.
Lewitas Hyman PC represents advisors, brokers and other financial professional in all matters involving the CFP Board, including CFP Board investigations. Headquartered in Chicago, our securities attorneys represent clients nationwide. For more information relating to CFP Board investigations and discipline or other matters, contact Lewitas Hyman at (888) 655-6002 or through our online contact form for a free consultation
