ASIC is in Support of AI in the Industry - Now is the Time to get Caught up!

ASIC has recently provided its support to utilising artificial intelligence to support and grow your advice firm - a welcome addition to a usually cautious regulator. However, the positivity towards AI will also mean some procedural and documented operational change is required. Get it right now, and you will be setting yourself up for efficiency, security and success.

AI Now Has Support In An Industry That Is Already Seeing The Benefits

New research commissioned by ASIC, carried out with the Digital Finance Cooperative Research Centre, found that AI is now actively embedded across the financial system. Research from Adviser Ratings found that 74% of Australian financial advice practices are now using AI, and the FAAA reoports that 82% are either using, piloting or planning to adopt AI in their practice. They are not only accepting this change, but encouraging fintech innovation, noting that its impact in industry is only starting. Their message was optimistic: as the pace of change accelerates, industry and regulators working together is how Australia stays ahead, not just keeps up.

That's an encouraging signal for advice practices. Studies were clear that innovation has real upside - stronger productivity, stronger economic growth and better outcomes for clients - big wins, esepcially for smaller firms. ASIC backed that up with action, not just words: its regulatory simplification agenda, its Innovation Hub and its Digital Finance Advisory Panel all exist specifically to make room for this kind of progress.

What This Means In Practice

For advisers, this is permission to lean in. The practices already exploring AI for research, client communication, meeting notes and drafting aren't taking a regulatory risk, they're moving in the exact direction the regulator is encouraging. The growth case is real: time saved on admin is time reinvested in clients, business development, or actually growing a book. The data points to startups and fintechs continuing to attract strong investment in this space, which is its own sign of where momentum is heading.

With all of this change on the horizon, there is a mix of excitement, but also a feeling that in a short few weeks you are being “left behind” - this is where consulting can support!

If You’re Going To Do It - Do It Properly!

There was an important qualifier - innovation needs to happen safely and responsibly. Far from being a limitation on the opportunity, that's actually the part that makes the opportunity durable rather than fleeting! A regulator that's comfortable with AI because the guardrails are solid is a much better long-term environment than one that's nervous and reactive. So the practical takeaway isn't "be careful", it's "build it properly, and then go full speed."

A few ways to make sure your practice is positioned to make the most of this moment:

• Treat AI as a genuine growth lever, not just a tidy-up tool. The biggest wins come from freeing up adviser time for the things that actually grow a practice - more client conversations, faster onboarding, sharper engagement - not just adding in “obviously AI” admin.

• Good governance is what lets you move fast with confidence. A recorded AI usage policy including which tools your practice has actually vetted and a structured sense of which tools and tasks carry more risk than others means you can adopt new tools effeciently and effectively without second-guessing yourself.

• The vendor market is moving quickly - more regulatory comfort with AI means more tools entering the market. That's an opportunity to find genuinely good options, but also leads to decision fatigue and the potential for applications to either be over-adopted (so you have more AI tools than you need) or the risk that new tools are not fit-for-purpose and do not handle client data the way ASIC expects.

• Consider this as encouragement to experiment, not a buzzword for the insustry. ASIC's ongoing work through its Innovation Hub and Advisory Panel suggests this is a sustained direction, not a single news cycle. Practices that start building AI fluency now will be well placed as the landscape keeps evolving.

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What Does This Mean For You?

This is a refreshing moment where the regulator and the growth opportunity are pointing the same way. ASIC isn't just tolerating AI adoption - it's actively backing it, with the simple expectation that practices build it on logical and compliant foundations. For advisers, that's about as good a green light as you'll get: the upside is real, the support is there, and the practices that combine genuine enthusiasm with good governance are the ones who'll get the most out of it.

If AI is feeling like a losing battle in your business, our team are here to help. We support the adoption and refinement of AI in your practice, making sure we handle the time it takes to research applications on the market and ensure whatever you choose is meaningful, inside of your risk profile and properly recorded.

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