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Artificial intelligence (AI) is rapidly transforming the wealth management industry. In this short video, Brian T. Daly, Akin’s investment management partner, discusses the importance of incorporating AI into his annual compliance review.
transcript
When it comes to artificial intelligence, every GC and every CCO is trying to catch up. Luckily for most people, it’s just about time to start preparing for your annual compliance review.
Therefore, we recommend including the following three concepts when addressing AI in your annual review:
- First, we focus on security and privacy. Talk to the CTO, if there is a CISO, he should consult the CISO, and review the network architecture. Identify all opportunities for an employee to share sensitive company, customer or investor information, or have access to his licensed AI products, and ensure that such information is locked down.
- Then, when interviewing investors or managers, ask what they are using AI for and, more importantly, what other companies (including counterparties) are using AI for. Discuss with them what risks their use introduces or highlights, and more importantly, where existing management frameworks fall short.
- Third, focus on the future. I mean everyone else is doing it too. They intend to continue using AI, so please take this as an opportunity to ask the rest of the governing board to give you the power to improve, change, or negate future AI use cases.
Finally, be flexible. Technology changes. Next year, next month, next week will be different. Your reaction should be fluid and reactive as well.
The content of this article is intended to provide a general guide on the subject. For your particular situation, you should seek professional advice.
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