Best AI for AdvisorsGeneral information, not legal or compliance advice. Check with your CCO or counsel.
AI compliance for financial advisors
Compliance is the main reason advisors hold back on AI, and the main thing chief compliance officers get asked about it. This hub collects what the rules actually say, in plain English, with a link to the regulator's own document for every point.
It's written for CCOs, compliance consultants and advisors at RIAs, broker-dealers and dually registered firms. We say what each rule is, who it applies to, what it means for AI tools and what to do, and we label the difference between what a rule requires, what regulators expect and what's simply good practice.
Last reviewed October 23, 2026.
Start here: six things every firm using AI should have
- A written AI acceptable use policy your CCO has approved, including which tools are allowed and what data can go in them. AI policy template
- Vendor due diligence and contracts for every AI tool that touches client data, with the 72-hour breach notice amended Regulation S-P calls for. Regulation S-P and AI vendors
- A recordkeeping decision for each AI output: which transcripts, summaries and chats you keep, and where. Recordkeeping guide
- A consent process for every recorded meeting, so the notetaker never runs without everyone's agreement. Recording laws
- Review of AI-drafted marketing and client communications through your normal approval process. Marketing Rule and AI
- Accurate, provable statements about how you use AI, in marketing and client documents. AI washing and exams
All eight topics
Six pages written for this hub, plus our two fact-checked guides on the Marketing Rule and recordkeeping.
- Applies to:RIABroker-dealerRegulation S-P and AI vendorsIncident response, 72-hour vendor notice, 30-day client notice and the compliance dates, applied to AI notetakers, chat tools and CRM AI.Read the page
- Applies to:Broker-dealerFINRA on generative AITechnology-neutral rules, supervision under Rule 3110, AI-written communications, vendor oversight, prompt logs and AI agents.Read the page
- Applies to:RIABroker-dealerRecordkeeping for AI chats and notetakersRule 204-2, SEA Rule 17a-4 and FINRA 4511 applied to transcripts, summaries and chatbot logs.Read the guide
- Applies to:RIA and BDState privacy and call-recording laws for AI notetakersFederal one-party consent, seven all-party states from their own statutes, and how state privacy laws treat financial data. Default: ask everyone.Read the page
- Applies to:RIABroker-dealerDisclosing AI use to clientsFiduciary duty, Form ADV, the Marketing Rule and AI washing, plus example consent, brochure and FAQ wording to discuss with compliance.Read the page
- Applies to:RIABroker-dealerAI washing, SEC enforcement and exam prioritiesThe Delphia and Global Predictions cases, the fiscal 2026 exam priorities on AI, the withdrawn analytics proposal and an exam-prep checklist.Read the page
- Applies to:RIAThe SEC Marketing Rule and AI-written contentWhat Rule 206(4)-1 means for AI-drafted posts, emails and website copy, and how to review it.Read the guide
- Applies to:RIABroker-dealerAI regulation timeline for financial advisorsEvery SEC, FINRA, NIST, FCC and FTC action that shapes advisors' AI use, dated and linked to the source.Read the page
By firm type
Registered investment advisers
SEC rules drive most of it: fiduciary duty, the Marketing Rule, books and records (Rule 204-2), the compliance rule and Regulation S-P. FINRA's guidance isn't binding on you, but it's a useful view of regulator thinking.
Broker-dealers
FINRA's technology-neutral rules apply to your AI use: supervision (3110), communications (2210) and books and records (4511), plus SEC Rule 17a-4 and Regulation S-P.
Dually registered firms and reps
Both sets apply, depending on which hat the activity falls under. Make sure your AI policy, recordkeeping and consent process work for both the advisory and the brokerage side.
Latest on the regulation timeline
· SEC
Compliance date for smaller entities under the Regulation S-P amendments.
· FINRA
FINRA publishes its 2026 Annual Regulatory Oversight Report with a new GenAI section, including AI agents and prompt and output logs.
· SEC
Compliance date for larger entities under the Regulation S-P amendments.
· SEC
The Division of Examinations publishes its fiscal 2026 priorities, including reviewing AI claims for accuracy and AI supervision policies.
· SEC
The SEC withdraws the predictive data analytics proposal, with other proposals, effective June 17, 2025.
Tools for compliance teams
For software that helps with marketing review, archiving and supervision, see our compliance tools roundup and AI for compliance at advisory firms, which covers what the tools do and what regulators expect.
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FAQ
Can financial advisors use AI and stay compliant?
Yes. No SEC or FINRA rule bans AI. Existing rules apply to it instead: supervision, recordkeeping, advertising, privacy and fiduciary duty. Most firms start with an approved AI policy, vendor due diligence and a recordkeeping decision for each tool.
Is there an AI-specific rule for advisors?
No. FINRA says its rules are technology neutral, and the SEC withdrew its 2023 predictive data analytics proposal in June 2025. The rules that apply are the ones you already follow.
Do AI notetakers create compliance issues?
They can touch three areas at once: recording consent under state law, recordkeeping for transcripts and summaries, and vendor oversight under Regulation S-P. Each has its own page in this hub.
Do I have to tell clients I use AI?
We haven't found a rule that specifically requires an AI disclosure, but fiduciary duty, Form ADV and advertising rules can require you to disclose material facts and keep what you say accurate. See our disclosure page and ask your CCO.
What does the SEC look for on AI in exams?
The fiscal 2026 priorities say examiners will review AI representations for accuracy and assess whether firms have policies and procedures to monitor or supervise their AI use.
Does Regulation S-P apply to AI tools?
If an AI vendor handles your customer information, amended Regulation S-P treats it as a service provider you must oversee, including a 72-hour breach notice to your firm.
Is this legal advice?
No. It's general information with links to the primary sources. Rules apply differently by firm type, registration and state, so talk to your CCO or counsel before acting.