By: E.J. Yerzak and Adam DiPaolo
Artificial intelligence is reshaping how investment advisers operate — from automating research and portfolio modeling to simplifying meeting management. Among these tools, AI notetakers have quickly become one of the most common and practical use cases.
Recording and transcribing meetings can save hours of manual work, give advisors more time to focus on clients, and help teams capture key insights they might otherwise miss. But those benefits come with risk — and most firms haven’t caught up.
Using AI notetakers in a compliant and secure way requires more than a click of the “record” button. It means understanding where the technology fits within your compliance framework and what controls are needed to protect sensitive information.
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How Firms Are Using AI Notetakers
AI notetakers capture audio and video from meetings and automatically generate searchable transcripts and summaries. That means anyone on your team can quickly find details like “What did we discuss with this client about the technology sector?” or “When did their market sentiment shift?”
Platforms like Zoom, Teams, Fireflies, and Otter are now commonplace in client calls, internal meetings, and expert network discussions. They make participation easier and follow-ups faster, freeing advisors from constant note-taking.
But behind that convenience are complex regulatory and cybersecurity obligations. Every recording introduces questions around consent, books and records, data privacy, and vendor oversight. Understanding those risks is essential before integrating AI notetakers into daily operations.
The Risks You Can’t Ignore
1. Consent and State Laws
Consent laws differ by state, and one party’s approval may not be enough. If even one participant is in a “two-party consent” state, recording without their approval could create legal exposure before the meeting even ends.
2. Compliance and Recordkeeping
AI-generated transcripts qualify as books and records under SEC rules. They must be retained, secured, and retrievable upon request. Too often, firms don’t know where these transcripts live, who can access them, or how long they’re kept.
3. Cybersecurity and Vendor Risk
Meeting transcripts often contain personally identifiable information (PII) or material nonpublic information (MNPI). Once that data passes through a third-party vendor, your firm is accountable for how it’s encrypted, stored, and protected. Vendor due diligence is no longer optional; it’s a regulatory expectation.
Building a Safe, Defensible Framework
Advisers can embrace the efficiency of AI notetakers without compromising compliance by implementing a structured approach.
- Require human review. Every transcript should be reviewed for accuracy and context before it’s saved or shared. AI transcription is improving but far from perfect, especially when tone or nuance matters.
- Add transparency. Consider adding a disclaimer to AI-generated transcripts noting that they were produced automatically and may not be complete or error-free. This reduces misinterpretation risk while reinforcing internal awareness.
- Confirm consent — every time. All participants should be informed when a meeting is being recorded or transcribed by AI. Be especially clear with clients or external partners who may have different expectations around privacy.
- Clarify your recording policy. Establish clear guidelines for granting or denying consent when external parties request to use AI tools in meetings with your firm. Ensure employees know when they can — and cannot — agree to those requests.
- Define storage and retention. Document where AI transcripts are stored, how they are secured, and for how long they are retained. Align these procedures with your firm’s broader books-and-records and data governance policies.
The Bottom Line
AI notetakers can be powerful tools when implemented with the right controls. They can enhance collaboration, save time, and strengthen client engagement, but only when the compliance, cybersecurity, and governance frameworks evolve alongside them.
At Salus GRC, we help firms design AI policies that meet regulatory standards while maintaining operational agility. From vendor due diligence to prompt engineering and implementation frameworks, our team ensures your use of AI is both compliant and credible.
Contact Salus GRC to learn more about our AI Consulting Services →