Powerful but risky, artificial intelligence (AI) should not be relied on excessively for legacy planning. The limitations of AI may cause inaccuracies to go unnoticed, resulting in serious issues during the execution of asset distribution, especially when you, the original owner, are not around any longer.
Before employing AI, here are some potential risks you must consider for your legacy planning.
Biased Outputs
AI produces outputs based on data inputs. And this data input may very well be biased, giving rise to recommendations that unjustly favour certain beneficiaries over others, failing to be fair and objective in the process. Furthermore, as generative AI tools are adept in predicting text through data inputs, outputs produced may lack real-world value, although they may appear to be reasonable on surface level. Due to the flawed data of AI, this biased output can skew decision making and adversely affect your legacy planning.
Likewise, if AI is not regularly updated with accurate legislative data, past irrelevant data may still be generated and referenced each time you consult it, leading to erroneous conclusions. The emergence of significant problematic issues later on, such as legal disputes, may also occur due to AI’s possible misinterpretations of complex legal terms during the process of legacy planning.
Lack of Tailored Solutions
AI is only capable of offering rather generic solutions, lacking proper analytic and empathetic skills when it comes to understanding the impact of decisions on family dynamics and other important sensitive aspects. Unable to factor in unique variables, AI can only provide recommendations suited for a general audience, ignoring the fact that it may not work the same for you, be it fulfilling your wants or needs. You may thus face extreme difficulty in finding the solution that truly works best for you, leading to futile efforts instead.
Poor Data Security
Upon the input of sensitive information on open-source AI programs that lack robust data security measures, your assets can become highly vulnerable. If exposed, anyone can gain access to your data and use it to their advantage, without regard for your interests. This, of all matters, should never be compromised. After all, legacy planning is designed for you to protect your assets, not to have them fall into the wrong hands.
When determining the appropriate use of AI, keep in mind these potential risks before proceeding. You can use AI to aid you during manual time-consuming stages of crafting drafts and examining documents, but consulting a professional financial planner is essential in the later stages of estate planning to help you achieve your desired goals.
Connect with me to discuss more on legacy planning.
Disclaimer: Investment carries certain risks. You should not just rely on results as an indication of your financial needs. You should understand and familiarise yourself with any investment and the associated risks before investing. You are also recommended to seek professional advice before making any decision to buy, sell or hold any investment or insurance product. The views and thoughts expressed in the post belong solely to us, and not to Manulife Financial Advisers Pte Ltd, or any other group of individuals.
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