Does Your Fintech Partner Have an AI Governance Committee?

The rationale for AI governance in fintech firms and how Advisor360°^TM approaches roles, responsibilities, and enablement.

Artificial intelligence is quickly becoming core to how fintech firms deliver value to customers—powering insights, enabling personalization, and accelerating decision-making at scale. Today, the question isn’t whether advisors are using AI; it’s whether they are using it consistently and responsibly in their day-to-day roles.

Recent industry research highlights why this distinction matters. Advisor360°’s 2026 AI Connected Wealth Report shows that as AI becomes more embedded in daily workflows, confidence increasingly hinges on trust, transparency, and control. Advisors want clear guardrails for how AI is used, visibility into how decisions are made, and assurance that humans remain accountable for outcomes. As AI adoption accelerates, so does the responsibility to ensure these systems are used ethically and in line with regulatory and business expectations. For wealth management firms, this includes understanding how AI governance is applied by the fintech providers they work with. This is where AI Governance Committees play a critical role.

The Role of an AI Governance Committee

An AI Governance Committee provides strategic oversight and accountability for how AI is designed, deployed, and managed across the organization. While the committee does not own AI-related risks—which remain with the appropriate functional and business leaders—it establishes the standards, processes, and controls that enable responsible AI use.

Equally important, effective governance should enable innovation, not slow it down. The committee’s role is to reduce ambiguity, avoid unnecessary friction, and help teams move faster with confidence.

At its core, the committee establishes guardrails that ensure AI systems:

• Align with the firm’s business strategy and risk appetite
• Meet regulatory, legal, and compliance expectations
• Protect customers, data, and the firm’s reputation
• Remain transparent, explainable, and monitored over time

Rather than treating AI governance as a purely technical or compliance exercise, the committee functions as a decision-making body—balancing innovation, risk, and trust.

Cross-Organizational Membership Is Essential

AI impacts nearly every part of an organization. Effective governance requires cross-functional representation that reflects the full lifecycle and business impact of AI systems.

A well-structured AI Governance Committee typically includes leaders from:

•  Information Security – to safeguard sensitive data and prevent misuse
•  Risk Management – to assess model, operational, and systemic risk
•  Engineering & Data – to understand model design, limitations, and controls
•  Legal & Privacy – to interpret evolving regulations and contractual obligations
• Product & Business – to ensure AI delivers real customer and business value
• Operations & Customer Experience – to account for downstream impacts and human oversight

This diversity ensures decisions are informed, balanced, and grounded in practical reality—preventing siloed decision-making that leads to blind spots.

Why AI Governance Matters in Fintech

For fintech firms, the stakes are particularly high. AI systems may influence credit decisions, investment recommendations, fraud outcomes, or customer interactions—often in regulated environments where fairness, explainability, and accountability are non-negotiable.

An AI Governance Committee helps firms:

• Reduce regulatory and legal risk by aligning with frameworks such as NIST AI RMF, ISO 42001, and emerging AI regulations
• Build customer trust by ensuring AI-driven decisions are fair, explainable, and well-governed
•  Protect brand reputation by preventing unintended bias, misuse, or opaque decision-making
•  Scale AI responsibly through repeatable processes rather than ad hoc approvals
• Reduce the likelihood of Shadow AI across the organization

When done well, governance becomes a competitive advantage—allowing firms to innovate confidently, partner effectively, and respond quickly to regulatory scrutiny.

From Oversight to Enablement

Innovation moves faster when expectations are clear. A mature AI Governance Committee is not a gatekeeper—it’s an enabler. By establishing clear standards, ownership, and escalation paths, it removes uncertainty for teams building, deploying, supporting, securing, and governing AI.

This is how we approach AI governance at Advisor360°. Our cross-functional AI Governance Committee provides oversight for how AI is designed, deployed, and monitored across the platform—helping ensure responsible innovation that aligns with regulatory expectations, risk management standards, and the trust our clients place in us. 

If these ideas resonate with you, I invite you to schedule a fast and easy demo to see how Advisor360° could improve your practice. Or follow us on LinkedIn to continue the conversation. 

Alex Cunningham is Chief Information Security Officer at Advisor360°