The use of artificial intelligence (AI) is currently experiencing rapid democratization, and generative AI platforms are increasingly popular. The majority of specialists agree that while AI offers new avenues of innovation and progress, they also involve risks that must be taken seriously.
Recently, the conference “La fintech. At the crossroads of finance, law, technology and marketing” was held as part of the 91e Acfas Congress. Fueled by experts from numerous specialties, highly relevant discussions made it possible to confirm that the risks of AI are indeed present in the practice of professionals in the financial sector.
As consumers’ needs for financial products and services rapidly evolve, this issue is of great importance. Digital technologies are bringing significant changes to the way things are done and sometimes constitute a new intermediary in the relationship between financial services advisors, including financial planners, and their clients. Today, consumers want to be holistically served in all aspects of their financial health, which includes insurance, investing and planning.
Serious multidisciplinary supervision
In this context of diversification of needs, it is important to consider that professionals in the financial sector are governed by a large number of laws, regulations and ethical rules. In Canada, Quebec is the only province to have provided multidisciplinary supervision for financial services professionals.
The Chamber of Financial Security’s mission is to ensure the protection of the public and to supervise financial services advisors, who, like doctors or lawyers, must see to the best interests of their clients and do proof of independence in the advice and services they offer.
Also, it must be emphasized that the different players in the financial ecosystem must work collaboratively. This helps maintain consumer trust in the financial sector. In view of the various questions raised by AI, it is essential that this collaboration can also count on our universities and our educational establishments.
A line not to cross
It is clear that technology is an integral part of the job of financial services professionals. Applications have an extraordinary capacity for data analysis and scenario evaluation of which consumers should not be deprived.
Therefore, financial services advisors must master the technological tools available, because it is in the interest of their clients. They must therefore know and understand how robo-advisors and online platforms work.
But above all, it is important to ensure that people remain at the heart of decisions relating to technological advances. Because, despite the rigorous supervision in place, biases should not be taken lightly. For example, risk tolerance is not expressed in the same way from one person to another. The words customers use vary greatly to illustrate situations and the nuances are often subtle to understand what the consumer really wants to express.
It is the advisor’s responsibility to ensure that they fully understand their client’s needs, projects and aspirations. He must be able to interpret the recommendations formulated numerically, to ensure that they correspond to the needs expressed.
In 2024, it is obvious that technology will help the advisor-client relationship. However, with technological advances, it becomes crucial that humans retain control of decisions.
Society must address ethical questions surrounding AI, including the issue of bias and related commercial interests, so that the use of data truly serves the advancement of our communities.