Introduction
Building on the first paper in the series, Governing Artificial Intelligence Across the Global Financial System, the second paper explores how generative AI is reshaping financial advice, with a focus on direct-to-consumer AI advisers. These systems deliver continuous, conversational, and highly personalized guidance, marking a shift from traditional advisory models to real-time, adaptive engagement.
The paper highlights key opportunities, particularly expanded access through lower costs and fewer barriers such as account minimums and geography. Generative AI also enables scalable personalization, allowing advice to reflect an individual’s evolving financial situation.
At the same time, the paper emphasizes risks, including issues of accuracy, bias, privacy, and conflicts of interest. Addressing these challenges requires strong governance, clear accountability, and adherence to existing regulatory frameworks to ensure advice remains trustworthy and aligned with users’ best interests.
