In Partnership with
Where we’re at:
generative AI in the
Canadian advisory scene
Experts on unlocking next-generation wealth management: How advisors are leveraging generative AI tools for superior client services
Chris Patterson
CIBC
Experts
Levin Karg
Ontario Securities Commission (OSC)
Steven Berger
Morningstar
Ian Tam
Morningstar Canada
Chris Patterson is a seasoned technologist with over 15 years of experience in the financial industry, with a specific focus on capital markets. With a strong consulting background, he has successfully deployed his expertise in a generative AI capacity across the bank. Currently, Patterson is leading the Microsoft CoPilot pilot program as well as the GitHub CoPilot program, and consulting across numerous enterprise Gen A I initiatives. His innovative approach and deep understanding of technology have played a pivotal role in driving these programs forward, enabling the bank to leverage cutting-edge AI technologies for enhanced productivity and efficiency.
Head of AI Governance and Advisory
Canadian Imperial Bank of Commerce CIBC
Chris Patterson
Levin is a lawyer by training who has worked for both international law firms and in consulting. At the OSC, Levin is spearheading efforts to innovate and improve regulation in Ontario’s capital markets, including leading the innovation office as a central hub of the OSC’s approach to artificial intelligence.
Manager, modernizing regulation
Levin Karg
Steven Berger is a director of product management, research distribution for Morningstar. He currently leads product for the Intelligence Engine, Morningstar’s platform for creating, testing, and delivering generative AI-powered features and capabilities. Since first joining Morningstar as an editorial intern for Morningstar.com, Berger has held a variety of roles across data, data technology, and product.
Director of product management, research distribution
Steven Berger
In his current role, Ian is tasked with evangelizing Morningstar’s thought leadership across multiple stakeholder groups within Canada’s investment industry, inclusive of individual investors, advisors, asset managers, industry trade bodies, and regulators. In 2021, he was the elected chair of the Canadian Investment Funds Standards Committee (CIFSC.org), a cross-industry organization that oversees mutual fund, ETF, and segregated fund classifications in Canada. Prior to his current role, Tam was a sales director for CPMS™, Morningstar’s quantitative screening and back-testing platform for equities. Tam holds a bachelor of applied science in mechanical engineering from the University of Waterloo, as well as the chartered financial analyst® designation.
Director of investment research
Morningstar Canada
(Host and moderator)
Ian Tam
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Vault Plus Mortgage and Finance Consultancy
David Merison
“Generative AI’s potential to transform advisory workflows is notable, particularly in enhancing productivity and compliance with regulatory tasks. The technology can streamline the know-your-client [KYC] process, traditionally a time-consuming task”
Chris Patterson,
Canadian Imperial Bank of Commerce (CIBC)
“Though it seems like the sky is the limit in terms of what can be done to leverage it, the implications of applying GenAI warrant an extra-cautious approach, especially in the financial advice space right here in Canada”
Ian Tam, Morningstar Canada
“Market participants are using AI systems more to enhance their existing products and services rather than creating new ones. AI systems are being rolled out in a phased approach”
Levin Karg,
Ontario Securities Commission
Leveraging generative AI tools, according to Karg, will largely depend on the unique circumstances of each advisor or firm, emphasizing the need for an interdisciplinary team approach
The conversation about future implementations of AI tools in the advice field reveals concerns over fraudulent use and accessibility to data sets. One worry Karg points out is the potential for AI tools to enable fraudsters to conduct scams more effectively, including mimicking advisors to deceive customers. Data, the fundamental component of any AI system, is also a concern, emphasizing the need for equitable access to training data sets to prevent monopolization by a few entities and ensure competitive fairness in the market.
Another critical issue raised is the interpretability and explicability of AI models. Given the complexity of generative AI systems, which often lack the inherent interpretability found in
Understanding and leveraging the capabilities of generative AI is crucial, though actual implementation to achieve tangible business outcomes poses a significant hurdle. Many executives grapple with the complexities of integrating such technologies, recognizing their importance for future success yet struggling with organizational and technological readiness to fully capitalize on these advancements.
In partnership with Wealth Professional, Tam facilitated the panel discussion “Generative AI in the Canadian advice space” (watch by clicking play on the webinar above), emphasizing the transformative power of GenAI technologies in reshaping global economic efficiencies. Yet Tam highlights the need for a cautious approach in leveraging these technologies.
traditional models, it’s crucial to address these concerns. This necessitates the expertise of individuals with a deep understanding of AI techniques, highlighting the importance of tapping into the talent pool in Ontario.
This speaks directly to Morningstar's Responsible Al Council, which is composed of senior leaders from various disciplines. As Berger details, “This council oversees the use of Al tools by employees, reviewing all use cases transitioning from an experiment to a prototype that might be shared externally or productionized, especially if it involves personal or non-public data. They evaluate projects from legal, data privacy, ethical, and reputational perspectives, based on responsible AI principles.
"Because it’s easy to produce very sophisticated-seeming generative AI prototypes, there’s a risk of introducing unforeseen consequences if those projects are rushed to market. Our council provides an important check to make sure everything we are releasing is in line with our brand and mission."
Right now, advisors in Canada face some pressures to help better the experience for the end investor, one method of course being client-focused reforms. On the horizon there is total cost reporting, which Tam argues might even put a bit more pressure on the advisor to produce value for the advice for which the client is being charged.
Navigating the promise
Interest in generative AI is palpable, but a cautious and responsible approach is warranted
The panel features prominent experts, including Chris Patterson, head of AI governance and advisory at CIBC; Levin Karg, manager of modernization regulation at the Ontario Securities Commission; and Steven Berger, director of product management, research distribution, at Morningstar.
to address these varied needs.
Berger illustrates how generative AI can streamline the user experience within their advisor software, making it more intuitive for advisors to navigate and use its comprehensive functionality.
Incorporating a generative AI-powered chatbot application into Morningstar’s advisor workstation aims to facilitate access to product features and support, thus enabling advisors to focus more on their core tasks rather than on navigating the software.
This AI application not only serves as a research assistant by parsing vast amounts of trusted content to provide relevant insights, but also offers real-time support, enhancing productivity and enabling advisors to deliver better outcomes for their clients.
Read on
As Patterson says, “Generative AI’s potential to transform advisory workflows is notable, particularly in enhancing productivity and compliance with regulatory tasks. The technology can streamline the know-your-client [KYC] process, traditionally a time-consuming task requiring yearly review of client details and documentation of any changes.
“By automating data collection, analysis, and documentation processes, GenAI can significantly reduce the workload associated with KYC obligations, allowing advisors to focus more on delivering value and personalized advice to their clients.”
and repetitive tasks, thereby enhancing the accessibility and personalization of advice.
Commenting on these technological advances, Patterson says, “A very important point is [that] the human element in the advisory process is irreplaceable. Advisors will continue to play a crucial role by providing necessary guidance and oversight, ensuring that advice remains personalized and aligned with clients’ goals.”
This future scenario paints a picture of a financial advisory sector in which AI significantly augments the efficiency and personalization of services – without diminishing the value of human insight.
Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individual investors, financial advisors, asset managers and owners, retirement plan providers and sponsors, and institutional investors in the debt and private capital markets. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $264 billion in assets under advisement and management as of September 30, 2023. The company operates through wholly or majority-owned subsidiaries in 32 countries. For more information, visit www.morningstar.com/company.
Find out more
In Partnership with
Where we’re at: generative
AI in the Canadian advisory scene
Experts on unlocking next-generation wealth management: How advisors are leveraging generative AI tools for superior client services
Read on
Ian Tam
Morningstar Canada
Steven Berger
Morningstar
Levin Karg
Ontario Securities Commission (OSC)
Chris Patterson
CIBC
Experts
Chris Patterson is a seasoned technologist with over 15 years of experience in the financial industry, with a specific focus on capital markets. With a strong consulting background, he has successfully deployed his expertise in a generative AI capacity across the bank. Currently, Patterson is leading the Microsoft CoPilot pilot program as well as the GitHub CoPilot program, and consulting across numerous enterprise Gen A I initiatives. His innovative approach and deep understanding of technology have played a pivotal role in driving these programs forward, enabling the bank to leverage cutting-edge AI technologies for enhanced productivity and efficiency.
Head of AI Governance and Advisory
Canadian Imperial Bank of Commerce CIBC
Chris Patterson
Levin is a lawyer by training who has worked for both international law firms and in consulting. At the OSC, Levin is spearheading efforts to innovate and improve regulation in Ontario’s capital markets, including leading the innovation office as a central hub of the OSC’s approach to artificial intelligence.
Manager, modernizing regulation
Ontario Securities Commission (OSC)
Levin Karg
Steven Berger is a director of product management, research distribution for Morningstar. He currently leads product for the Intelligence Engine, Morningstar’s platform for creating, testing, and delivering generative AI-powered features and capabilities. Since first joining Morningstar as an editorial intern for Morningstar.com, Berger has held a variety of roles across data, data technology, and product.
Director of product management, research distribution
Morningstar
Steven Berger
In his current role, Ian is tasked with evangelizing Morningstar’s thought leadership across multiple stakeholder groups within Canada’s investment industry, inclusive of individual investors, advisors, asset managers, industry trade bodies, and regulators. In 2021, he was the elected chair of the Canadian Investment Funds Standards Committee (CIFSC.org), a cross-industry organization that oversees mutual fund, ETF, and segregated fund classifications in Canada. Prior to his current role, Tam was a sales director for CPMS™, Morningstar’s quantitative screening and back-testing platform for equities. Tam holds a bachelor of applied science in mechanical engineering from the University of Waterloo, as well as the chartered financial analyst® designation.
Director of investment research
Morningstar Canada
(Host and moderator)
Ian Tam
In Partnership with
Where we’re at: generative AI in the Canadian advisory scene
Experts on unlocking next-generation wealth management: How advisors are leveraging generative AI tools for superior client services
Read on
Ian Tam
Morningstar Canada
Steven Berger
Morningstar
Levin Karg
Ontario Securities Commission (OSC)
Chris Patterson
CIBC
Experts
In his current role, Ian is tasked with evangelizing Morningstar’s thought leadership across multiple stakeholder groups within Canada’s investment industry, inclusive of individual investors, advisors, asset managers, industry trade bodies, and regulators. In 2021, he was the elected chair of the Canadian Investment Funds Standards Committee (CIFSC.org), a cross-industry organization that oversees mutual fund, ETF, and segregated fund classifications in Canada. Prior to his current role, Tam was a sales director for CPMS™, Morningstar’s quantitative screening and back-testing platform for equities. Tam holds a bachelor of applied science in mechanical engineering from the University of Waterloo, as well as the chartered financial analyst® designation.
Director of investment research
Morningstar Canada
(Host and moderator)
Ian Tam
Steven Berger is a director of product management, research distribution for Morningstar. He currently leads product for the Intelligence Engine, Morningstar’s platform for creating, testing, and delivering generative AI-powered features and capabilities. Since first joining Morningstar as an editorial intern for Morningstar.com, Berger has held a variety of roles across data, data technology, and product.
Director of product management,
research distribution
Morningstar
Steven Berger
Levin is a lawyer by training who has worked for both international law firms and in consulting. At the OSC, Levin is spearheading efforts to innovate and improve regulation in Ontario’s capital markets, including leading the innovation office as a central hub of the OSC’s approach to artificial intelligence.
Manager, modernizing regulation
Ontario Securities Commission (OSC)
Levin Karg
Chris Patterson is a seasoned technologist with over 15 years of experience in the financial industry, with a specific focus on capital markets. With a strong consulting background, he has successfully deployed his expertise in a generative AI capacity across the bank. Currently, Patterson is leading the Microsoft CoPilot pilot program as well as the GitHub CoPilot program, and consulting across numerous enterprise Gen A I initiatives. His innovative approach and deep understanding of technology have played a pivotal role in driving these programs forward, enabling the bank to leverage cutting-edge AI technologies for enhanced productivity and efficiency.
Head of AI Governance and Advisory
Canadian Imperial Bank of Commerce CIBC
Chris Patterson
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Regulatory framework considerations
Published April 22, 2024
“This council oversees the use of Al tools by employees, reviewing all use cases transitioning from an experiment to a prototype that might be shared externally or productionized, especially if it involves personal or non-public data”
Steven Berger,
Morningstar
Generative AI can transform advisory workflows, enhancing productivity and regulatory compliance
Advisor-tech solutions will become more intuitive as generative AI streamlines user experience
The future:
AI significantly augments the efficiency and personalization of services, without diminishing the value of human insight
According to Patterson’s assessment, the use of generative AI technologies by Canadian financial institutions is in the early stages. He goes on to say, “I would like to emphasize that this isn’t due to a lack of interest – quite the opposite, really, given the number of people reaching out across the enterprise just in the past year.”
“Despite the palpable excitement and high expectations throughout the bank regarding the potential of this technology, our strategy is to proceed with careful consideration to ensure we fully understand and can leverage its capabilities responsibly.”
The current state of GenAI in Canada
As noted by Karg, generally, AI use cases by wealth management firms and advisors in Ontario’s capital markets are in the intermediate stage. “Market participants are using AI systems more to enhance their existing products and services,” rather than creating new ones, he says. “AI systems are being rolled out in a phased approach.”
When it comes to generative AI tools, “they are being used for low-risk applications such as generating summaries; higher-risk applications like those that would fall under the category of risk management or revenue generation are being used in a more limited way.”
The advisor advantage
A decade from now
In a future shaped by generative AI, a decade from now, financial advisory services will have been profoundly transformed. Karg envisions a world where generative AI tools are seamlessly integrated into user interfaces using both third-party and in-house developed solutions.
These advancements could enable advisors to focus more on understanding investors and tailoring communication and advice to their specific needs. The question of whether meetings between advisors and investors will occur in person or virtually, possibly through innovative channels or even with AI-driven virtual advisors, reflects a broadening of how advisory services might be delivered.
The use of AI tools could extend to new, more intuitive forms of interaction beyond traditional laptops or paper, possibly involving wearable technology that further eliminates manual
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Ontario Securities Commission (OSC)
Morningstar
"IT IS HARD to believe that just over a year ago, large language models and generative AI [GenAI] took the world by storm with the arrival of Open AI’s ChatGPT. Since then, the use of the technology has exploded, unlocking great potential for efficiencies across the global economy,” said Ian Tam, director of investment research at Morningstar Canada.
“Though it seems like the sky is the limit in terms of what can be done to leverage it, the implications of applying GenAI warrant an extra-cautious approach, especially in the financial advice space right here in Canada.”
The adage “Time is money” holds especially true in banking and financial institutions today. Time spared in signing on new clients, expediting loan processes, curtailing fraud, or handling regulatory matters directly affects financial outcomes.
Enhancing operational speed not only elevates team efficiency but also fosters innovative ways to personalize services and improve customer experiences. The introduction of generative AI promises to amplify these benefits in banking significantly.
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Copyright © 1996-2024 KM Business Information Canada Ltd.