Artificial intelligence (AI) has moved with lightning speed from a buzzword to a boardroom priority in the past three years. Asset managers and family wealth advisors have traveled a long way from their early experiments with ChatGPT. They’re now beginning to realize the potential of AI to enhance investment decisions, automate operations and deliver personalized client experiences. But AI opportunities come with unique risks, especially when it comes to data privacy and security, as well as regulatory and legal compliance in a fast moving and fast changing landscape.
Let’s break down the fundamentals of AI and explore some of the most critical risks, offering three primary guideposts for responsible AI adoption and risk management.
Key AI…