_edited_edited.png)
How to Use AI Without Breaking Compliance Rules
- LIngram
- 22 hours ago
- 2 min read
A 5-Point Safety Checklist Every Financial Advisor Needs
AI can be a massive efficiency booster for financial advisors, but only if it’s used responsibly. The reality is this: AI doesn’t create compliance risk… improper use does.
After 20+ years in wealth management and fintech, I’ve seen advisors hesitate to adopt AI because they’re afraid of the regulatory gray areas. But the truth is, you can use AI safely, effectively, and in full alignment with your firm’s requirements.
Here’s a simple 5-rule checklist to help you stay compliant while leveraging AI today.
Never Input Sensitive Client Data Into Public AI Tools
Avoid sharing:
Full names
Account numbers
Social Security numbers
Statements or account documents
Addresses or phone numbers
Any personal identifiers
Safe workaround: Use summaries instead of raw data. Example: “A client in their mid-50s with moderate risk tolerance…”
Always Validate AI Output Before Sending It to Clients
AI is fast, but it can be confidently wrong.
Before sending:
Check facts
Remove predictions
Eliminate performance promises
Replace subjective language
Ensure recommendations align with suitability
AI drafts → You Finalize.
Keep AI Responses in Firm-Approved Channels
Never bypass:
CRM
Email archives
Compliance review tools
Approved communication channels
If it isn’t tracked, it isn’t compliant.
Use AI for Internal Workflows, Not Client-Facing Advice
Safe AI use cases:
Meeting summaries
Note cleanup
Email drafts
Research synthesis
Content brainstorming
Presentation prep
Risky use cases:
Portfolio recommendations
Performance projections
Direct investment advice
AI informs your decisions, it never replaces your judgment.
Store All Final Versions in Your CRM — Not in AI Platforms
Your CRM should hold the final copy of:
Client notes
Email communications
Recommendations
Task lists
Planning documents
Public AI tools should never be your system of record.
Final Takeaway
You can absolutely use AI without breaking compliance rules, but only if you use it thoughtfully. AI is not a loophole. It’s leverage.
Follow these five rules, and you’ll operate confidently, safely, and well within SEC and firm expectations.
Learn more about AI-safe advisor workflows:
Comments