Advisers, Compliance, Consumer Duty & Agentic

Advisers, Compliance, Consumer Duty & Agentic

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Interesting being involved in the latest AI discussions across Department for Science, Innovation & Technology and the Central Digital Data Office.

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Where will all this fit with UK Financial Services & Fintech developments, especially for financial advisory firms there is currently a lot of discussion around Agentic AI?

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Not sure many will be up to speed on Agentic AI, yet this is coming fast down the track. It will I guess probably hit banks first though.

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Agentic AI is?a type of artificial intelligence (AI) that can perform tasks autonomously, learn, and adapt to new situations.?It combines AI agents, automation, and human collaboration to solve complex problems.?

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·????? Agentic AI systems can sense their environment and process environmental cues.?

·????? It can evaluate options and make decisions based on patterns and likelihoods.?

·????? Can take actions to achieve goals, such as setting up meetings or managing inventory.?

·????? Can learn from interactions and adjust approach based on changing circumstances.?

·????? Agentic AI can automate complex workflows and business processes.?

·????? It can help businesses optimize operations and reduce the need for human intervention.?

·????? It can work with humans to solve problems and adapt to new information.?

·????? Agentic AI can help monitor inboxes, identify important messages, and draft responses.?

·????? Agentic AI requires decision making that considers long-term consequences and adapts to dynamic environments—a realm where current generative AI falls short. Could be very useful for Financial Planning and more importantly compliance with real time regulatory monitoring and seamlessly integrating into work flows of financial institutions.

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One key issue will be a strong regulatory framework that adapts, evolves and responds to the new challenges and risks that AI technology brings. This is currently in train both in Westminster & Brussels.

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One concern with adviser work is of course, some applications store user data to train the model which could make them unsuitable for use with client information!

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Developments could mean adviser clients could have their own bots or AI agents helping them choose products and execute asset allocation & transactions.

AI should enable advisory firms the chance to become more efficient and effective in asset allocation, client management and meeting the regulatory needs of Consumer Duty.

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Next step must be open discussions with FCA, Treasury & regulators to agree the regulatory road map.

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One key issue will be a strong regulatory framework that adapts, evolves and responds to the new challenges and risks that AI technology brings. This is currently in train both in Westminster & Brussels.

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One concern with adviser work is of course, some applications store user data to train the model which could make them unsuitable for use with client information!

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Going to be interesting to see how this develops.

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#AI #FinTechIntelligence #Fintech #financialtechnology #technology #payments #business#innovation

#TechFin #RegTech #FinancialServicesAI #ML #Riskcontrols #RegulatorySupervision #RegulatoryHorizons#GreenFinTech #SuitabilityFintech #OpenInteroperableStandards #OpenFinance #OpenBanking #DigitallyEnabledRegulation

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