The Financial Planning Standards Board (FPSB) has released a practice guidance note comprising eight principles for the responsible use of AI in financial planning.
The FPSB said the note was designed to “help financial planning professionals understand their professional and ethical obligations when using AI technologies in practice.”
“It is intended to complement existing legal, regulatory, and professional standards, and to provide practical guidance on how to use AI in a manner that is ethical, client-focused, and consistent with professional judgment,” the note continued.
The eight principles proposed by the FPSB are that advisers should:
- Investigate AI tools to understand how they work before adopting them in practice
- Disclose any use of AI to clients
- Critically evaluate AI outputs
- Monitor AI outputs for discriminatory bias
- Evaluate AI use to ensure it doesn’t “impair the professional character of financial planning services they provide”
- Invest in development of their knowledge of AI technology to ensure they can competently investigate it
- Ensure they don’t upload any client data into public-facing AI tools
- Understand how AI affects the advice given to clients, including product recommendations
Because AI technology is evolving rapidly, the FPSB said, these principles are designed to be applied “flexibly as technologies, use cases and risks continue to develop.”
Referencing the standards body’s 2025 research on the topic, the FPSB noted that at around two thirds (64 per cent) of advice businesses now use AI in some capacity – but cautioned that it should be exclusively used as a support tool rather than as a replacement for professional expertise.
The guidance note explained: “Financial planning professionals are expected to exercise due care, skill, and diligence in the selection, implementation, and ongoing monitoring of AI tools, in a manner that serves clients’ best interests and upholds public trust in the profession.
“Where professionals are employed by firms, this includes complying with the firm’s AI policies and procedures.”
Commenting on the guidance note, FPSB chief executive Dante De Gori said: “AI is reshaping the practice of financial planning, but trust, professional judgment and accountability remain essential.”
“This new practice guidance note is designed to help financial planners embrace the benefits of AI while reinforcing that they remain responsible for the advice and recommendations they provide to clients,” De Gori continued.
FPSB professional standards committee chair Darren McShane added: “AI can enhance how financial planners serve clients, but it must be used with care, transparency and professional oversight.”
“FPSB’s new guidance note helps financial planners understand how to use AI responsibly while keeping professional judgment and client interests at the centre,” McShane said.
