The US-based Financial Planning Standards Board (FPSB) has published a practice guidance note on the use of AI in financial planning, outlining how advisers can use AI technology while meeting their professional and ethical obligations.
Its report – Use of Artificial Intelligence in Financial Planning – stresses that AI should be used as a support tool rather than a substitute for professional expertise, critical thinking and human oversight.
It states advisers are expected to exercise due care, skill and diligence when selecting, implementing and monitoring AI tools, and remain accountable for the advice delivered to clients.
…AI is reshaping the practice of financial planning…
FPSB said the guidance was developed as AI adoption accelerates across the profession. Research conducted by the organisation involving more than 6,200 financial planners across 24 territories, including Australia’s FAAA, found 64% of respondents said their firms were already using AI.
The research found 78% of planners believe AI will help them better serve clients, while 60% expect it to improve the quality of advice.
According to FPSB, advisers are already using AI for client communications, data collection, risk profiling and administrative functions such as marketing and client onboarding.
The guidance also highlights risks associated with the technology, including data privacy, cybersecurity, algorithmic bias, transparency, and the reliability of AI-generated outputs. FPSB warned that responsibility for advice cannot be delegated to technology.
“AI is reshaping the practice of financial planning, but trust, professional judgment and accountability remain essential,” said FPSB CEO Dante De Gori.
“This new practice guidance note is designed to help financial planners embrace the benefits of AI while reinforcing that they remain responsible for the advice and recommendations they provide to clients.”
Key takeaways
- Advisers remain responsible for the advice they give
- AI should support, not replace, professional judgment
- Human oversight is essential
- Privacy and cybersecurity require particular attention
- Check outputs for accuracy
- Watch for bias and explainability issues
- Third-party AI tools still create responsibility
