Client Consent Best Practices
Using AI to analyze client data is a powerful capability, but clients should understand how their information is being used. This page provides guidance on disclosing AI usage and obtaining appropriate consent.
Why Disclosure Matters
Transparency builds trust. Clients who understand that AI assists in their financial planning are more likely to appreciate the thoroughness of your analysis. Proactive disclosure also reduces regulatory risk and demonstrates professional responsibility.
What to Disclose
When discussing AI usage with clients, consider covering:
- AI is used to analyze their financial data and identify planning opportunities
- Their data is processed through secure, enterprise-grade AI systems
- Data is not used to train AI models and is deleted after processing
- A human advisor reviews all AI-generated recommendations
- They can opt out of AI processing if preferred
Supporting Client Preferences
Sterling's AI Usage Policies let you honor individual client preferences:
| Client Preference | Policy Setting |
|---|---|
| Comfortable with AI analysis | Full Access — AI features work normally |
| Prefers no AI involvement | No Access — no household data is sent to an AI system |
| Undecided, or not yet asked | No Access — the default until the client opts in |
Document the Conversation
Keep a record of your AI disclosure discussion in your client files. Note the date, what was explained, and the client's expressed preference.
Sample Disclosure Language
Here is suggested language you can adapt for your practice:
Our firm uses AI-powered tools to analyze your financial situation and identify planning opportunities. Your data is processed through secure enterprise systems and is never used to train AI models. All generated insights are reviewed by your advisor before recommending.
Ongoing Communication
AI disclosure is not a one-time conversation. Consider revisiting the topic:
- During annual reviews
- When introducing new AI-powered features
- If a client expresses concerns about technology or privacy
- When onboarding clients who joined before AI features were available