Robert Moore, Director – UK at Jersey Finance, recently invited a group of London-based intermediaries to discuss how Artificial Intelligence (AI) is playing an increasingly visible role in our day to day lives and specifically in the context of family offices and the private client community.

As the environment evolves, AI is supporting the industry to achieve greater efficiency, manage data, help drive analytics, performance measurement, predictions, and forecasting, in addition to supporting improved customer services and much more.

The forum was used to discuss:

  • How firms are adopting and adapting to the technology with the realisation that failure to do so will have a material impact on attracting new business and new talent to their organisations.
  • The key risks associated with implementing tech solutions and how can they be effectively mitigated.
  • How firms are addressing concerns surrounding data security and client privacy, especially considering the sensitive nature of financial information.
  • Navigating the regulatory landscape, particularly in terms of compliance, reporting, and transparency.
  • The strategies which are proving effective in educating private clients and family offices about the benefits and risks of tech solutions, and how to enhance client engagement.
  • As AI and automation play a larger role, how firms strike a balance between leveraging technology for efficiency while maintaining the human touch and personalised service that clients expect.
  • The measures that are being taken to enhance cybersecurity resilience within the sector to protect client information from potential breaches, especially given the increasing frequency and sophistication of cyber threats.
  • The ethical considerations arising from the use of advanced tech solutions, and how firms can ensure that their practices align with ethical standards and client expectations.

In summary, all those present at the table agreed that AI has a huge role to play in our future strategies, but we need to ensure appropriate policies, procedures, checks, and audits are in place to mitigate against potential risks.

Regulation and global practices need to be aligned to keep the marketplace fair and consistent, encouraging AI users and deterring bad actors.

The topic of reputation from a legal, administrative, and cyber angle was also identified as a priority, together with the potential operational disruption and personal risk arising from reputational damage.

Education was also highlighted as important, not only with clients but internally to provide staff with the clarity required on the changing responsibilities and where additional value can be added, as a result of AI efficiencies.

To close the discussions, those present addressed how firms strike a balance between leveraging technology for efficiency while maintaining the human touch and personalised service that clients expect. Job security was identified as an area of concern for some roles within organisations but, equally, recognition was given to the reality that new roles will be created. It was agreed that updating job skills is essential to remain relevant to the business.