AI – Can I?

On the Quarterly Compliance Meeting hosted earlier this week (recording available here!), you were told that an article with more information about AI tool compliance was coming. This is that article.  

While a lot of questions about this technology will continue to be explored going forward, we know that you see potential opportunities – and need questions answered – in the here and now. We want to simplify and clarify the biggest two we’ve been hearing: 

QUESTION 1: Can I use an AI tool? 

ANSWER: That depends on what it’s for. 

The shortcut to understanding what is and is not allowed is to think about what you are doing with it. IN GENERAL: If your use-case involves sensitive information (such as handling client/potential client information, or research that could inform trading client accounts), then restrictions will apply and an approved tool must be used. 

• Hybrid Advisors: See LPL’s Artificial Intelligence page on the Resource Center. Tools are broken out by use-case (e.g. call recording/notetakers, market research tools). Check if you see what you’re trying to achieve on this list and then look at the list of options they’ve given. LPL strictly limits these use-cases to the whitelisted tool list they provide. 

• RIA Only: Reach out to our inbox at compliance@greatvalleyadvisors.com with any questions about specific tools for sensitive-information use cases.  All LPL-vetted options are also approved for RIA Only use – others are approved on a case-by-case basis. 

QUESTION 2: Can I use an AI assistant on my calls? 

ANSWER: Yes – with an approved tool and consent. 

Using an AI tool to process, record, and/or transcribe conversations with clients is the definition of a sensitive use-case – and it is one which is now approved, and for which approved tools are available.  

Consent is critically important when using recording or AI notetaking. Ensure that either a notification appears on a screen visible to the client when recording a call, or that you ask and they affirmatively answer that they are okay with it. Other misuses of AI can cause problems and break rules, but processing or recording calls without consent can be a serious violation of the Law. 

Just as with above, Hybrid Advisors should check out LPL’s AI page in Clientworks as a resource for finding approved tools. RIA Only advisors may use these same tools as well and should reach out to compliance@greatvalleyadvisors.com with any questions about other options. 

We’re excited to help make good tools and good opportunities available and we welcome any questions if you want to reach out. 

If you have any questions please email compliance@greatvalleyadvisors.com.