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Why AI Alone Is Not Enough in Regulated Investment Communication Platforms

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Cost effective, cloud based automated fund and client reporting for Asset Managers

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by Instinct Digital
| 14/05/2025 12:00:00

Instinct Digital offers a full suite of integrated investment communication products, built on top of a componentised data and presentation layer. We are excited about the possibilities artificial intelligence (AI) brings, and we are keeping a close eye on its rapid evolution.

At Instinct we are actively investing in AI across our platform, from accelerating development to simplifying data onboarding, and we are seeing great benefits. But while AI is a powerful tool, it is not a silver bullet. In our domain, given the tight regulations and where data and compliance guardrails are vital, relying solely on AI is not just inadequate; it is risky.

Instinct believes that the future lies in AI-augmented systems, where automation is embedded into robust, well-governed workflows. Our platform combines AI with data integrity, compliance controls, and industry-specific expertise, delivering solutions that are fast, flexible and most importantly, reliable. AI should be a tool, not a strategy. Our usage will expand as we analyse further suitable use cases, ensuring that we are always delivering high quality, secure and reliable applications. Two of our current use cases at Instinct are:

  •  Accelerated Schema Mapping: Using our client data adapter model, we create custom mappings for each client’s data sources, leveraging AI powered by Natural Language Processing (NLP) to accelerate the creation of schema mappings. This reduces or even eliminates the need for clients to adjust their data processes, accelerating onboarding and minimising disruption to existing workflows.
  • Rapid Prototyping: We are leveraging AI to fast track prototyping work, enabling us to quickly trial, adapt, and pivot on solutions to complex user experience problems that exist within our domain. This will enable us to continue to out-pace our competitors and bring innovative, powerful products to market at a quicker rate.

In both cases AI is working within our system under governance, in a controlled loop, and always supervised. Artificial Intelligence can certainly speed up our development and enhance our offerings, but we believe AI alone can not replace the full power of Instinct’s platform. While generative AI is evolving rapidly, it remains prone to hallucination1 . In our industry, that is not just a technical flaw, it is a compliance risk. For regulated content, such as factsheets, a single incorrect performance figure or disclaimer could breach regulation, mislead investors, and damage reputation. It could also have real cost implications, too.

As our chief technology officer, John Marsden, attests, “In our industry AI is best used as an accelerant within a controlled ecosystem, not as an unbounded content generator. When regulated content and investor communication are at stake, this distinction is vital.”

Unlike general-purpose AI models, Instinct’s factsheet and document generation flows are deterministic. Our state-of-the-art Rules Engine, combined with strict data controls across our ETL pipelines and Mission Control dashboards, provides a robust governance framework. As a result, every output includes the correct disclaimers, metrics, and content, ensuring:

  • Data lineage from ingestion to output
  • Validated metrics at every stage
  • Correct, adapted disclaimers and legal content
  • Version-controlled data publishing with audit trails
  • Full traceability and human-in-the-loop oversight

This level of operational rigour is not something an AI-first content platform can offer, but is especially necessary when financial outcomes and regulatory scrutiny are at stake. Our factsheet generation process is deterministic by design and will never hallucinate. This ensures outputs remain compliant, repeatable and accurate, all while delivering professionally formatted PDF factsheets in an average of two seconds.

Our stance is that controlled intelligence is superior to artificial intelligence. Some tools may be able to generate a “fund factsheet” using AI alone, but that does not make it trustworthy, maintainable, or compliant. Our platform has been designed and built not just to publish, but to protect. We see AI as one part of a much broader responsibility: to deliver compliant, explainable, high-quality investor communications every time.

By embedding AI into a controlled architecture, Instinct Digital offers clients:

  • Faster onboarding and integration
  • Lower operational overheads
  • Innovation without compliance compromise
  • Speed and scale with trust built in

Artificial Intelligence is here to stay, and Instinct is using it to great effect and our adoption of it will continue to grow. But in regulated environments, it must be used in conjunction with a broader system of controls. Instinct Digital provides exactly that. We are not just adopting AI, we are embedding it in a platform designed for precision, transparency, and trust.