Pimfa has launched an artificial intelligence microsite for its members to help them understand how they can use AI in a way that benefits their firms and to help them avoid potential risks.
It was launched to help members with the processing of data in relation to client onboarding and profiling.
The microsite is also designed to help members avoid risks involved in using AI, such as systems developing biases or inaccuracies in decision making which could result in poor outcomes for clients.
David Ostojitsch, director of government relations and policy at Pimfa, said: “It is clear that AI systems have a role to play, for example, in helping firms process huge amounts of data or running models that might help with forecasting of client portfolios.
“However, there are also, as with any technology, risks that AI could introduce consumer harm into the market.
“It is therefore vital that firms deploying AI systems have a deep understanding of their AI capabilities and have a suitably robust control framework.”
Many Pimfa members are already using AI systems and tools in their day-to-day operations, and adoption of AI in financial services will increase rapidly over the next few years.
The members use AI tools for a number of purposes, most commonly to analyse large volumes of data quickly and accurately, enabling members to make timely decisions based on the data output and spend more time using that output to work with and for their clients.
Ostojitsch added: “As with any innovation, AI has the potential to make fundamental improvements in how firms can serve their clients.
“However, we must ensure it is continually monitored and adapted as necessary.”
Last year, Pimfa joined forces with Morningstar to launch a platform that encourages wealth management and advice companies to take advantage of tech developments.
The platform, called Pimfa WealthTech, was developed as a response to drivers of digital transformation, such as the pandemic, and the impact on advice models and shifting demographics.
At the time, Pimfa said digital is reshaping business and operating models and accelerating the need for wealth management and advice firms to focus on the use of technology-based solutions and new technology to enhance the products and services they offer.
sonia.rach@ft.com
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