By Tom Berndt
Like you, many of us within Robins Kaplan’s Wealth Disputes Group enjoy cinema. I personally love sci-fi and, while researching AI’s impact on fiduciary disputes, repeatedly thought of old favorites like Blade Runner and Terminator 2: Judgment Day.
So far, at least, generative AI bears little resemblance to these Hollywood depictions. For example, in my practice, I use AI for research and some limited writing, but don’t foresee lawsuits one day being tried by humanlike robots with real hair and skin. Nor do I anticipate humanity having to band together to fight “the machines.” But that doesn’t mean AI won’t continue to reshape the way both lawyers and fiduciaries do their jobs.
This edition of The Spotlight delves into the growing intersection between AI and fiduciary duties. As technology advances rapidly, fiduciaries face new challenges in ensuring their duties of care and loyalty are met. AI promises real benefits: improved market insights, personalized investment strategies, and risk management based on predictive modeling. AI will likely do all this while saving fiduciaries and their clients significant time and expense.
These benefits are, of course, offset by countervailing concerns regarding confidentiality, quality control, and transparency. In this issue, we provide insights into the key issues fiduciaries must consider when adopting AI tools. We explore the importance of ensuring AI systems comply with fiduciary standards and the ethical implications of using AI, particularly its impact on client confidentiality and data privacy. We aim to help fiduciaries integrate AI tools into their practices while safeguarding their clients’ trust and confidence. After all, while AI will be a valuable tool, it will be the fiduciaries themselves who are ultimately responsible for ensuring they understand the technology and are meeting their legal and ethical obligations.
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