The panelists emphasized that good model development practices, irrespective of regulatory requirements, lead to better performance and predictability in tech investments. Companies implementing self-governance ahead of regulations often perform better by integrating risk management with economic considerations. The NIST framework, “Towards a Standard for Identifying and Managing Bias in Artificial Intelligence,” addresses both technical and social impacts of AI, ensuring comprehensive governance.

Mandated by Congress in 2021, NIST developed a risk-based framework for managing AI models and practices. This flexible resource aids organizations in governing, mapping, measuring, and managing bias in AI. By focusing on governance, policies, procedures, and organizational culture, organizations can take a comprehensive approach to this challenge. By taking a proactive approach to governance, the aim is to help organizations promote trustworthy AI practices, including model validity, reliability, security, resilience, explainability, accountability, transparency, privacy, fairness, and bias mitigation.

The panel also discussed the relationship between federal and state initiatives and the role of self-regulation in AI governance. One panelist mentioned the AI Executive Order's contribution to defining real risks and the ongoing work on an AI risk management profile for generative AI. Another stressed the need for clear documentation and repeatable practices to provide assurance to partners.

The conversation also covered the challenges of accountability within organizations, highlighting the need for a cultural shift towards responsible AI use. The panel emphasized the importance of integrating AI risk management with broader enterprise risk management frameworks and adopting a shared responsibility model with third-party vendors.

Looking forward, one panelist predicted that AI risk management would become a distinct job category, with an increased focus on the societal impacts of AI. Another anticipated a progressive impact on software quality control driven by AI, leading to more regulated software development practices.

In summary, the panel highlighted that given the evolving regulatory landscape there is a need for clear and transparent AI governance practices, as well as the importance of interdisciplinary collaboration and cultural shifts towards responsible AI use.

To learn more about AI in financial services, you can explore further with research from the Center for Ethics in Financial Services.

In this episode of our NextGen in 10 podcast, host Matt Aaron, CFP®, RICP® speaks with Rianka Dorsainvil, CFP® about the unique value she has been able to bring to clients as a millennial advisor, and how younger advisors can be confident in their ability to help clients of all ages and backgrounds.

Rianka Dorsainvil, CFP®, co-founder and co-CEO of 2050 Wealth Partners, focuses on empowering entrepreneurs and first-generation wealth builders to own their money story and pursue their biggest dreams. As a financial planner and an advocate for diversity, equity, and inclusion, Dorsainvil believes that first-generation wealth-builders are a community that has been underserved by the financial planning profession for too long – and she’s here to help change the tides. She serves as a member of CNBC's Digital Financial Advisor Council and CFP Board’s Diversity Advisory Group, is a Forbes Personal Finance contributor, and has been recognized for her accomplishments and leadership within the industry by leading publications and organizations, such as InvestmentNews’ inaugural 2017 Women to Watch Rising Star award and Wealth Management’s Ten to Watch in 2018. She has been published in PBS NewsHour, Forbes, USA Today, Black Enterprise, CNBC, Women’s Health, and more.

Any views or opinions expressed in this podcast are the hosts’ and guests' own and do not necessarily represent those of The American College of Financial Services.

Financial Advisor | Leading With Trust In The Modern Financial Landscape
June 6, 2024

Director of research and operations Domarina Oshana, PhD discusses how financial services companies can use artificial intelligence (AI) responsibly while maintaining consumer and employee trust.

Kitces.com | Weekend Reading For Financial Planners (June 8-9)
June 7, 2024

Financial guru Michael Kitces discusses The College’s upcoming Tax Planning Certified Professional™ (TPCP™) Program and how it will meet a growing need in the financial planning industry.

The Wall Street Journal | How to Choose the Best High-Yield Savings Account for You
June 10, 2024

WMCP® Program Director Michael Finke, PhD, CFP® takes a look at how today’s interest rates may affect Americans’ savings habits – and what should be done about them.

Financial Planning | Tax Planning Certification Rolling Out as Wealth and Tax Divide Narrows
June 11, 2024

Jeffrey Levine, the industry thought leader behind The College’s upcoming Tax Planning Certified Professional™ (TPCP™) Program, joins chief marketing and strategy officer Jared Trexler to discuss how the program will enhance the advice of advisors across fields of expertise.

ThinkAdvisor | What to Expect From American College’s New Tax Certification
June 11, 2024

Jeffrey Levine and chief marketing and strategy officer Jared Trexler talk specifics of The College’s upcoming Tax Planning Certified Professional™ (TPCP™) Program and how it fills a needed niche in the market.

In this episode of our NextGen in 10 podcast, host Alanah Phillips, MBA speaks with Jordan Murray, CFP® about the ways new advisors can beat the odds by joining an established team. Not only does this allow them to learn from more senior members, but it solves the problem of getting access to new clients.

Jordan Murray, CFP®, is an advisor with Acord & Fong Wealth Strategies and Lincoln Financial. Murray began his career as a financial planner immediately after college and has risen to become a partner in the practice. As a CFP® professional, he maintains a fiduciary standard with his clients and is held to the higher CFP® certification standard of ethics. He works mostly with retirees and small business owners primarily through personal introductions from existing clients.

Any views or opinions expressed in this podcast are the hosts’ and guests' own and do not necessarily represent those of The American College of Financial Services.
 

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In this episode of our NextGen in 10 podcast, host Alanah Phillips, MBA speaks with Jordan Murray, CFP® about ways advisory firms can use flexible models for compensation and a people-first environment to attract and keep their best new advisors.

Jordan Murray, CFP®, is an advisor with Acord & Fong Wealth Strategies and Lincoln Financial. Murray began his career as a financial planner immediately after college and has risen to become a partner in the practice. As a CFP® professional, he maintains a fiduciary standard with his clients and is held to the higher CFP® certification standard of ethics. He works mostly with retirees and small business owners primarily through personal introductions from existing clients.

Any views or opinions expressed in this podcast are the hosts’ and guests' own and do not necessarily represent those of The American College of Financial Services.

In her piece, Oshana, director of research and operations at the American College Center for Ethics in Financial Services, recounts her recent experience at the twenty-third Annual James A. and Linda R. Mitchell/The American College of Financial Services Forum on Ethical Leadership in Financial Services. She specifically shares the insights she gained relating to AI and its use in the financial services industry.

Oshana goes on to discuss the major ethical implications that all businesses should consider when implementing AI into their strategy, including how to approach criticism of AI, the risks associated, and the importance of effective governance.

Read on to hear what Oshana has to say about this trending topic!

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In this episode of our NextGen in 10 podcast, host Alanah Phillips, MBA speaks with Jordan Murray, CFP® about how the teams model can better ensure new advisors get the chance to thrive in the business.

Jordan Murray, CFP®, is an advisor with Acord & Fong Wealth Strategies and Lincoln Financial. Murray began his career as a financial planner immediately after college and has risen to become a partner in the practice. As a CFP® professional, he maintains a fiduciary standard with his clients and is held to the higher CFP® certification standard of ethics. He works mostly with retirees and small business owners primarily through personal introductions from existing clients.

Any views or opinions expressed in this podcast are the hosts’ and guests' own and do not necessarily represent those of The American College of Financial Services.