What is a prompt?

Definition

A prompt is what you type (or say, or upload) to tell an AI tool what you want. It can be a one-line question or a detailed instruction with a document attached, an example of the format you want and the audience it's for.

In products like notetakers and CRM assistants, the vendor writes most of the prompt for you behind the scenes. In chat assistants, you write it yourself.

Why it matters for advisors

Prompts are where client data most often leaks into AI tools. An advisor who pastes a client's account details into an unapproved chat app has put nonpublic personal information with a vendor the firm never reviewed. That's why AI policies say what can and can't go into a prompt.

Prompts can also be records. FINRA's 2026 oversight report suggests firms consider storing prompt and output logs, and some firms' policies require it for client-related work.

Example

A firm keeps a library of approved prompts for common tasks (meeting follow-ups, plan explanations) that tell the tool to use plain English, avoid guarantees and flag anything it isn't sure of. Advisors use those instead of writing their own each time.

Watch out for

A good prompt doesn't make output accurate. It makes it more useful. Review still applies.