Industry speakers have warned that mortgage firms should not adopt AI simply because it is available. Particular concerns were raised about advisers using free public generative-AI tools, where confidential client data, inaccurate outputs, weak audit trails and unclear supplier terms can create substantial conduct and operational-risk exposure.
For financial advisers, an AI policy should cover approved tools, data handling, human review, record keeping, testing and supplier resilience. Before deploying an AI assistant, firms should define the business problem and measurable customer benefit, then ensure that accountable staff can challenge its recommendations and explain outcomes to clients and compliance teams.