Compliance in the Age of AI: What Every Advisory Firm Needs to Know

The financial industry is changing fast. Artificial intelligence and automation are reshaping how firms operate, clients expect faster service and teams are managing more accounts than ever before. And while more advisors are turning to AI (one recent survey found that 74% of firms are using AI, including 95% of RIAs), the need to stay compliant remains crucial.

Advisory firms that succeed are the ones that can innovate without losing control of their processes. That starts with building visibility into every client interaction, keeping teams aligned and creating workflows that can adapt as the business evolves.

Build a Compliance Foundation That Can Scale

AI and automation can be powerful tools for advisors, but compliance still sits at the center of every operation. Even as new technology changes how firms work, FINRA and the SEC have taken a measured approach to AI regulation. Instead of creating new AI-specific rules, they are applying existing guidelines to digital tools and processes.

FINRA and the SEC have taken a measured approach to AI regulation. They are observing how firms adopt the technology before creating prescriptive rules, a strategy similar to how they approached social media a decade ago. The absence of AI-specific rules does not mean firms can move fast and break things. Regulators will evaluate AI use through the lens of existing rules, giving them wide latitude. A communication rule violation does not become acceptable just because AI generated the content.

Consider this scenario. An advisor uses an AI tool to draft a quarterly market commentary for clients. The AI generates compelling content but includes a statement like “stocks have never declined over any 20-year period,” almost true but technically inaccurate. Under FINRA Rule 2210, that communication must be “fair and balanced.” The advisor is responsible for the content, whether written by them or AI.

This is where human oversight is critical. Someone with market knowledge must review, fact-check and approve AI-generated content before it reaches clients. The same principle applies to AI-assisted portfolio recommendations, client onboarding documents or automated responses to client inquiries. The technology can draft, but humans must verify.

:Understanding these existing rules is the foundation. Firms should run any AI-related activities through the same compliance framework used for non-AI content. Key rules include:

• FINRA Rule 2210 All communications must be fair and balanced with regulations for approving, reviewing and maintaining records.
• SEC Rule 17a-3 (Books and Records): Establishes record-keeping requirements for client information, communications and related records.

Following these rules ensures that AI-generated content meets the same compliance standards as traditional content.

Create Frameworks That Keep Your Firm Agile

Without specific AI regulations, many firms must set their own pace and standards. Creating internal frameworks for how automation and workflows are used helps teams stay compliant and efficient as technology evolves.

To stay compliant, firms should consider internal guidelines and frameworks for the following:

• Audit trail capabilities: Can the tool document who prompted it, what output it generated, and who reviewed/edited that output?
• Explainability: If the AI recommends a portfolio adjustment, can you explain the reasoning to a client or regulator?
• Data handling: Where does client data go? Is it used to train the model? Does it meet your BAA requirements?
• Vendor due diligence: Has the vendor undergone SOC 2 audits? What's their incident response plan?

Internal frameworks tell you what to do. But compliance ultimately depends on people following those frameworks. That's where culture becomes the final piece.

When teams define these standards early, they can adopt automation confidently. It ensures that growth does not outpace compliance, and that everyone understands how to balance speed with responsibility.

Build a Culture That Balances Innovation and Accountability

Every firm’s culture defines its long-term success. To operate effectively in a digital environment, advisors must maintain a culture that values compliance and transparency while welcoming innovation.

That means giving every team member the knowledge and tools to stay up to date with regulations and new technology. Training should focus on understanding key rules, recognizing red flags, and taking ownership of data accuracy.

As compliance expectations evolve, forward-looking firms are using automation and workflows not to replace oversight but to enhance visibility and accountability. The result is a consistent client experience where nothing slips through the cracks. To create effective compliance efforts, advisors must foster a culture of compliance.

Why Visibility and Efficiency Matter More Than Ever

Advisors handle hundreds of small but important client actions every week — follow-ups, reviews, onboarding, document updates and task assignments. Without clear visibility into these activities, even strong firms can lose momentum.

While FINRA and the SEC haven't issued AI-specific rules yet, signs point to increased scrutiny. The SEC's recent exam priorities mention "emerging technologies," and FINRA has issued guidance on algorithmic trading and digital communications.  Forward-looking firms should expect:

• Disclosure requirements: You may need to tell clients when AI assists with advice or communication
• Model governance standards: Similar to how quantitative models require documented methodologies
• Heightened supervision: Proving that humans meaningfully reviewed AI output, not just rubber-stamped it. Firms building strong internal frameworks now will adapt more easily when — not If — specific rules arrive.

Automation and structured workflows help eliminate those manual gaps. Teams can start their day knowing exactly what matters most, see who owns each step, and move faster without sacrificing accuracy.

When firms have visibility into tasks, timelines and capacity, they can:

• Deliver a consistent client experience every time
• Increase team efficiency and bandwidth
• Scale client onboarding without adding staff
• Save hours every week by eliminating repetitive steps
• Prevent details from being missed as teams grow

This clarity not only reduces risk but also creates a culture of accountability and confidence across the firm.

Tying It All Together with Hubly

Hubly brings these best practices to life by giving advisory teams visibility, automation and control in one intuitive workspace.

Advisors can start their day with clarity and purpose, see every client process in motion and ensure that no task or client is left behind. Workflows are easy to build, adapt, and automate — helping teams stay efficient and compliant.

With Hubly, firms gain:

• A clear view of priorities and progress for every team member
• Repeatable, auditable workflows that reduce manual tracking
• The ability to adapt quickly as regulations or team responsibilities change
• Insights into firm performance and capacity to plan for growth

Hubly turns process management into a growth engine. Whether you are improving onboarding, enhancing client reviews or building operational resilience, Hubly helps you deliver a consistent client experience at scale.

Build a workflow that holds — and a firm that grows. Start your free 30-day trial of Hubly today.