The global standards body for financial planners has published new guidance making clear that artificial intelligence tools do not reduce or reassign the professional responsibility advisors carry for the advice they give clients.
The Financial Planning Standards Board wants to ensure that the technology is used in the right way, so that it helps advisors and other CFP professionals with efficiency, insights, and client service, while ensuring its use is ethical, transparent, and confidential.
Its newly issued Practice Guidance Note on the Use of AI in Financial Planning sets out how CFP professionals worldwide should approach AI adoption within the framework the organization oversees, covering everything from client disclosure and data privacy to the risk of over-reliance on outputs that look authoritative but may be wrong.
The release comes as AI use across the profession accelerates sharply with FPSB's own 2025 global research, drawing on responses from more than 6,200 financial planners across 24 territories, revealing that two in three report their firm is already using AI or plans to do so within the next 12 months.
A further 78% believe AI will help them better serve clients, and 60% say it will improve the quality of financial advice.
"AI is reshaping the practice of financial planning, but trust, professional judgment and accountability remain essential," said FPSB CEO Dante De Gori, CFP. "This new practice guidance note is designed to help financial planners embrace the benefits of AI while reinforcing that they remain responsible for the advice and recommendations they provide to clients."
The research shows that advisors are already using the technology in client-facing and operational roles including 41% who are applying AI to client communications, 33% to client data collection, and 30% to risk profiling.
On the operational side, 35% are using it for marketing and 34% for client onboarding. Top concerns include data privacy and cybersecurity, cited by 47% of respondents, and the accuracy and reliability of AI outputs, flagged by 42%.
The guidance organizes its requirements around eight principles drawn from FPSB's existing Financial Planner Code of Ethics.
Before adopting any AI tool, advisors must understand how it works, what assumptions it makes, and where its limits lie. Disclosure of AI use to clients should happen as early as possible, ideally before the engagement begins, and must cover benefits, known limitations, risks, and any additional costs.
The document flags specific risks that advisors need to actively manage such as AI systems producing outputs that look credible but are factually incorrect, known as hallucinations. Training data may carry historical bias that persists in what the system produces. And the note warns that AI may generate responses aligned with what the user expects to hear, rather than independent analysis.
On data protection, the guidance is explicit: client data must not be entered into publicly accessible AI tools. Where in-house or vendor systems are used, robust access controls and compliance with local privacy law are required.
"As technology evolves, FPSB's global standards continue to guide the level of practice expected of financial planning professionals," said FPSB Chief Professionalism Officer Paul Grimes, CFP. "This guidance note helps financial planners understand how their professional and ethical obligations evolve as AI becomes part of professional practice."
The document maps AI applications and oversight expectations across all six stages of the financial planning process, from establishing the client relationship through to ongoing review. In every case, professional judgment is described as the factor that determines what advice is ultimately delivered to the client.
"AI can enhance how financial planners serve clients, but it must be used with care, transparency and professional oversight," said FPSB Professional Standards Committee Chairperson Darren McShane. "FPSB's new guidance note helps financial planners understand how to use AI responsibly while keeping professional judgment and client interests at the center."
The guidance was developed by FPSB's Professional Standards Committee in consultation with its network of member organizations, which collectively represent more than 236,000 CFP professionals. It is intended to complement FPSB's Global Financial Planning Standards and does not override local laws or regulations.
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