Katie Daniels Discusses the Risks and Rewards of AI Adoption in Fund Compliance with Fund Directions

In a recent article in Fund Directions at With Intelligence, director of ethics, compliance and insights Katie Daniels is featured discussing how underutilizing artificial intelligence can impact commercial success and efficiency.  The article explores how compliance professionals and fund board members are navigating the growing adoption of AI tools across the industry, a key theme at the ICI's Investment Management Conference in March.

While noting the impact of non-adoption, Katie emphasized the risks of moving too fast without proper safeguards. "If you dive in too quickly, you're at risk of missing that hard work of making sure the instructions you're providing to the tool are free from bias, has good data … and you're stress testing constantly as you're learning new things," she told Fund Directions. She also advised board members to engage multiple stakeholders, from general counsel to commercial leaders, to ensure consistent governance frameworks and to understand where a human remains in the loop.