--- title: "Client notice for AI-assisted or digital financial advice" url: "https://ailawframework.com/precedents/financial-services-regulation/digital-advice-ai-disclosure" type: "precedent" site: "AI Law Framework" id: "a28-digital-advice-ai-disclosure" area_id: "A28" kind: "notice" ai_level: "yellow" version: 1 law_stated_as_at: "2026-10-17" --- # Client notice for AI-assisted or digital financial advice > Plain-English client notice explaining how a licensee uses AI in its advice service, who is responsible, what the tools do and do not do, the type and scope of advice, human oversight, privacy and complaints. Canonical page: https://ailawframework.com/precedents/financial-services-regulation/digital-advice-ai-disclosure Law stated as at: 2026-10-17 Site index for agents: https://ailawframework.com/llms.txt ## Key facts - Kind: Notice. A formal notice to serve or publish. - Practice area: [Financial Services Regulation](https://ailawframework.com/precedents/financial-services-regulation.md) - Jurisdictions: Australia, United Kingdom (England and Wales) - AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use. - Law stated as at: 2026-10-17 - Status: Maintained. Checked on 2026-10-17 against the 10 authorities it cites, for Australia and United Kingdom (England and Wales). ## When to use it Use when an AFS licensee or authorised representative uses AI or a digital advice tool to give information, general advice or personal advice to retail clients, or to prepare advice documents. It does not replace the Financial Services Guide or Statement of Advice, and it cannot cure advice that fails the best interests duty. ## How AI may be used AI may help draft and simplify the notice, but every statement about what the tool does, who reviews it and where data goes must be checked against how the system actually works. A wrong description is itself a compliance risk. **AI may:** - Draft plain-language descriptions of each AI function from the licensee's system documentation. - Test the draft for readability and flag jargon or undefined terms. - Compare the notice with the Financial Services Guide and privacy policy and list inconsistencies. **AI must not:** - Must not describe capabilities, human review or testing that the licensee does not actually have. - Must not choose between the general advice and personal advice alternatives; that is a legal characterisation for the lawyer. - Must not insert data-location or model-training statements that have not been confirmed with the vendor contract. **The lawyer checks:** - The advice characterisation (general or personal) matches how a reasonable client would see the service (s 766B(3)). - Each statement about AI functions, human review, testing and data handling is true and supported by documents. - The general advice warning, complaints and AFCA details are complete and current. ## Authorities - [Corporations Act 2001 (Cth) s 766B (financial product advice; personal and general advice)](https://www.legislation.gov.au/C2004A00818/latest/text) - [Corporations Act 2001 (Cth) s 946A (Statement of Advice)](https://www.legislation.gov.au/C2004A00818/latest/text) - [Corporations Act 2001 (Cth) s 949A (general advice warning)](https://www.legislation.gov.au/C2004A00818/latest/text) - [Corporations Act 2001 (Cth) ss 961(6), 961B (advice through a computer program; best interests duty)](https://www.legislation.gov.au/C2004A00818/latest/text) - [Australian Securities and Investments Commission Act 2001 (Cth) s 12DA (misleading or deceptive conduct in relation to financial services)](https://www.legislation.gov.au/C2004A00819/latest/text) - [Corporations Act 2001 (Cth) s 1041H(1) (misleading or deceptive conduct in relation to a financial product or service)](https://www.legislation.gov.au/C2004A00818/latest/text) - [ASIC Regulatory Guide 255 Providing digital financial product advice to retail clients](https://www.asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-255-providing-digital-financial-product-advice-to-retail-clients) - [Privacy Act 1988 (Cth) Sch 1 APP 1.7 to 1.9 (automated decision transparency, from 10 December 2026)](https://www.oaic.gov.au/news/media-centre/new-resources-on-transparency-for-use-of-ai-and-automated-decision-making) - [Privacy Act 1988 (Cth) Sch 1 APP 8 (cross-border disclosure of personal information)](https://www.legislation.gov.au/C2004A03712/latest/text) - [FCA Handbook PRIN 2A The Consumer Duty (UK)](https://www.handbook.fca.org.uk/handbook/PRIN/2A/) ## Official form [Official form](https://www.asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-255-providing-digital-financial-product-advice-to-retail-clients) ## Full text and drafting notes The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/financial-services-regulation/digital-advice-ai-disclosure and through the signed-in MCP connector https://ailawframework.com/mcp/firm. *Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*