The AI Trustee

By offering a combination of sophisticated analytics, automation, and enhanced decision-making capabilities, AI is set to revolutionise the way trustees operate.

Opportunities

• Automated Reporting & Analytics

AI-powered analytics tools can process vast amounts of data and generate insightful reports, helping trustees make informed decisions.

For instance, AI could analyse the performance of various assets within a trust, identify trends, and create comprehensive reports.

Extrapolating from an e-commerce experience, imagine you run an e-commerce website, and you want to understand your users' behavior to improve sales.

Google Analytics allows you to create a customised dashboard where you can visualise the data most relevant to you.

Once set up, these reports get automatically updated in real-time or at the frequency you have set, reducing manual effort.

• Streamlining Document Analysis

AI can be used to review legal documents, agreements, and other paperwork associated with a trust.

Machine learning algorithms can identify and highlight key terms, obligations, and risks, speeding up the process significantly.

AI contract analysis software that can review hundreds of pages of legal text, pulling out key clauses, and summarising the document in a fraction of the time it would take a human.

Ketl is an example of AI application used in the legal field. Ketl enables lawyers, notaries, banks, and insurance companies to correctly categorise and sort their emails and documents, thereby saving substantial time.

Despite the risks, the potential benefits of AI integration in trust management are immense

• Automating Repetitive Tasks

Tasks like data entry or compliance checks can be automated with AI or Robotic Process Automation (‘RPA’) tools such as Workfusion or Pega.

RPA tools can mimic human interaction with software applications to carry out repetitive tasks such as reviews payment alerts generated against sanctions lists or databases searches for additional details of people or companies that may be of concern for the trustee.

AI tools such as Pega may help streamline trustees clients onboarding process and carry out the right amount of KYC due diligence needed for every relationship.

• Regulatory Compliance

AI can help in ensuring compliance with legal regulations. AI tools can scan through large volumes of text to ensure that all actions taken comply with current laws and regulations.

They can also stay updated on any changes to these laws and highlight where and how these changes impact the trustees.

For instance, Thomson Reuters Regulatory Intelligence offers a comprehensive suite of regulatory compliance tools, including news, analysis, and regulatory materials.

It allows to browse the collection of 2,500 regulatory and legislative materials including rulebooks, rule changes, and reg events with coverage of over 1,300 regulatory bodies.

It uses AI to filter information, providing trustees with content relevant to their industry.

• Learning and Development

AI-powered platforms can provide personalised learning experiences to trustees, enhancing their skills and knowledge.

These platforms can analyse individual learning behaviors, preferences, and progress to recommend tailored learning resources.

For instance, Docebo (TSX: DCBO NASDAQ: DCBO) Learning Management System offers impressive personalised learning paths and content curation based on learners' previous interactions and preferences.

• Meeting Scheduling and Management

AI scheduling tools like Clara can coordinate with all stakeholders' calendars to find mutually agreeable meeting times, considering factors like time zones and personal schedule preferences.

These tools can also send out meeting invites, handle rescheduling requests, and send reminders.

Risks

While the potential of AI is undeniably vast, the use of this technology is not without its risks.

With AI's increased data processing capabilities comes an increased risk of data breaches.

It is crucial to have robust security measures in place to protect sensitive clients’ information.

Also, AI decision-making processes can be opaque, making it difficult to understand how a specific outcome has been reached.

This could pose challenges in explaining decisions to beneficiaries and other stakeholders.

Moreover, as AI systems learn from the data they are fed, if this data contains biases, the AI may also exhibit these biases in its decision-making process, leading to potentially unfair or inaccurate outcomes.

Last but not least, the rapidly evolving AI landscape can sometimes outpace regulations, leading to potential legal and compliance issues. Trustees must stay abreast of changes in both AI and legal landscapes.

Despite these risks, the potential benefits of AI integration in trust management are immense.

With careful management and a comprehensive understanding of both the possibilities and challenges, trustees can leverage AI to elevate their productivity and enhance decision-making.

Ethical considerations, data privacy, and maintaining human judgement are key aspects to consider as we journey into this new era of AI-enhanced trusteeship.