Artificial intelligence (AI) isn’t infallible and in one instance even created its own Financial Conduct Authority (FCA) rule.
This is according to Justin Harper, chief marketing officer at LifeSearch (pictured), who spoke to Health & Protection for our recent analysis exploring whether AI is an adviser’s friend or foe.
Retaining human judgement
While AI will inevitably take on more routine tasks, identify potential risks and support both advisers and customers, Harper maintained that firms that succeed will use technology to remove effort while keeping human judgement firmly in place.
“A hot topic – one important consideration will be governance,” he continued.
“AI adoption is moving quickly across financial services, and firms need to balance innovation with appropriate oversight, risk management and customer protection.
“Technology can be incredibly powerful, but it isn’t infallible. Like many firms, we’ve seen examples where AI can produce convincing but inaccurate outputs – in one instance we found that it had invented an FCA rule. That’s why human accountability and judgement remain absolutely essential.”