Most firms already have more than enough on their plates and so the last thing you’ll want to do is spend time and energy writing or revising policies and procedures. We’ve come a long way from having office store rooms crammed full of paper files, but we’ve reached a point in time where we need to take care.
It’s tempting to let AI do the heavy lifting when it comes to your compliance policies. It can be a fantastic support tool in that it speeds up the process and can help you in structuring your ideas.
But, it will only be as good as the information you give it. You’ll need to provide detailed prompts that align to your firm’s circumstances and regulatory position. If you’re not crystal clear on what you’re asking and you don’t provide enough of the right detail, you’ll get generic and even misleading results.
Just as importantly, AI doesn’t know your business (even if it makes you feel like it does).
So, you’ll need to be able to recognise when AI gets it wrong. And it will. The result being that your policies won’t be bespoke to your firm. And they need to be.
Don’t forget that AI is a tool. It won’t replace the knowledge you have of the internal workings of your firm and provide you with a policy that’s designed accordingly.
Remember also the challenge of ongoing privacy issues with AI, so make sure that you don’t add any identifiable details about your firm.
If you’re going to use AI, treat the outputs as a starting point only. Make sure that it’s tailored against your firm’s regulatory obligations, risks and your culture and always ask a real, competent person to challenge the content before the policy is approved.