The CFP Board is forming an AI Working Group to investigate how artificial intelligence is changing the financial planning profession. The group will include participants from LPL Financial, Ernst & Young, Orion, Fidelity and Edward Jones (among others).
Shortly after the group launched, the Board announced a new Head of Technology who would help guide the Board’s approach to the rapidly encroaching technology on the industry.
The group met this week in Washington, D.C., to develop recommendations for CFP certificants to ensure that technology is helping bolster advisors’ ability to build human relationships.
“AI is not a distant wave,” CFP Board CEO Kevin Keller said about the working group. “It’s already shaping client expectations and how advisors deliver value.”
The group is led by CFP Board COO Dane Snowden and was created with the help of consulting firm Heidrick and Struggles. The members include Andrew Altfest, former Assistant Secretary of Commerce Alan Davidson, Tim Foley, the head of LPL’s Artificial Intelligence Accelerator, Sage CEO Brooke Juniper, Fidelity Institutional Vice President Celeste Revelli, and David Goldberg, an SVP and Chief Data and Analytics Officer for Edelman Financial Engines.
The discussion topics include the current state of AI, regulation of the technology and future scenarios that may arise in the space while analyzing trends, real-world instances and ethical dilemmas that are becoming everyday occurrences in many industries.
Last month, the CFP Board unveiled an artificial intelligence-backed exam preparation tool for people preparing to sit for the CFP designation test. The tool adjusts its responses to test-takers’ questions to personalize their preparation, and it will supplement the board’s traditional practice exams.
In February, the Board released its Generative AI Ethics Guide, a resource to help CFP advisors better use generative AI in their practices while assisting them in staying within the guidelines of the CFP Board’s ethical requirements. It includes checklists to safeguard client confidentiality, verify that AI-generated output is accurate and ensure compliance with privacy laws.
Additionally, the Board announced this week that Barry Gersten will take over as the CFP Board’s Head Technology Officer, overseeing all information technology and digital moves (including guiding the board’s evaluation of how AI will impact the board and its members).
“In this era of rapid technological change, Barry’s leadership will elevate our digital readiness and help us remain at the forefront,” Keller said about the new hire.
Gersten previously ran his own consulting practice, working with organizations (including the CFP Board) on their IT strategy and assessing their systems, infrastructure and third-party vendors’ IT capabilities.
Before that, Gersten was the Chief Technology Officer (CTO) for the American Nurses Association, where he boosted operational efficiency by 30% while dropping IT infrastructure costs by 20%. Gersten was also a vice president of IT at the Aspen Institute and the CIO for Washington, D.C.’s Police Department. He starts the new role next Monday.