The Financial Planning Standards Board (FPSB) has issued a new practice guidance note emphasizing that the use of artificial intelligence does not shift or diminish the professional responsibility financial advisors hold for their clients. The guidance, released on [date], aims to ensure that AI adoption in financial planning remains ethical, transparent, and confidential.
According to the FPSB's 2025 global research, which surveyed over 6,200 financial planners across 24 territories, two-thirds of firms are already using AI or plan to do so within the next 12 months. Additionally, 78% of respondents believe AI will help them better serve clients, and 60% say it will improve the quality of financial advice. However, the FPSB warns that advisors must not rely solely on AI outputs without exercising professional judgment.
The guidance organizes requirements around eight principles drawn from the FPSB's existing Financial Planner Code of Ethics. These principles cover client disclosure, data privacy, and the risk of over-reliance on AI-generated outputs that may appear authoritative but could be incorrect. Advisors must understand how AI tools work, their assumptions, and limitations before adoption. Disclosure of AI use to clients should occur as early as possible, ideally before engagement begins, and must include benefits, known limitations, risks, and any additional costs.
Specific risks highlighted in the guidance include AI hallucinations—outputs that look credible but are factually incorrect—as well as historical bias in training data and the tendency for AI to generate responses that align with user expectations rather than independent analysis. On data protection, the guidance is explicit: client data must not be entered into publicly accessible AI tools. Where in-house or vendor systems are used, robust access controls and compliance with local privacy laws are required.
The research shows that advisors are already applying AI in client-facing and operational roles. For instance, 41% use AI for client communications, 33% for client data collection, and 30% for risk profiling. On the operational side, 35% use AI for marketing and 34% for client onboarding. Top concerns include data privacy and cybersecurity, cited by 47% of respondents, and the accuracy and reliability of AI outputs, flagged by 42%.
FPSB CEO Dante De Gori stated, "AI is reshaping the practice of financial planning, but trust, professional judgment and accountability remain essential." The guidance was developed by the FPSB's Professional Standards Committee in consultation with its network of member organizations, which collectively represent more than 236,000 CFP professionals worldwide. It is intended to complement the FPSB's Global Financial Planning Standards and does not override local laws or regulations.
The document maps AI applications and oversight expectations across all six stages of the financial planning process, from establishing the client relationship through ongoing review. In every case, professional judgment is described as the factor that determines what advice is ultimately delivered to the client. For more on how technology is reshaping the industry, see our coverage of global fintech revenue hitting $504B in 2025 and the lag in AI adoption among US firms.
Paul Grimes, FPSB Chief Professionalism Officer, added, "As technology evolves, FPSB's global standards continue to guide the level of practice expected of financial planning professionals." The guidance note helps financial planners understand how their professional and ethical obligations evolve as AI becomes part of professional practice.
