BackPro
Library

eBook · PDF, 11 pages

The AI-Native Compliance Advantage

The questions advisers and licensees ask about AI in advice documents, answered one at a time with what BackPro has measured or built.

Written for advisers, practice principals and licensee compliance teams.

Sent to your inbox. No call, and nothing else unless you ask.

What you will take away

  1. 01

    In BackPro’s March 2026 test of 120 compliance questions, the common approach of handing the AI the closest matching passages made up answers on 34 (28.3%), more than the same AI with no documents at all (19, 15.8%). BackPro made up one (0.8%).

  2. 02

    On the 60 questions that had no answer in the documents, BackPro said so on 59 (98.3%) and invented nothing.

  3. 03

    In a Statement of Advice, only the written reasoning reaches the AI. Figures are looked up in the client’s file and conditional paragraphs are switched on or off, so your template stays yours.

  4. 04

    The advice stays with the adviser. The best interests duty sits in sections 961B to 961J of the Corporations Act, and ASIC says a licensee remains responsible for anything it outsources (RG 104.34).

Inside the eBook

  • Will it make things up?
  • What does it do when it doesn’t know?
  • Where did that answer come from?
  • Will it use our template, or its own?
  • What gets caught before I read the draft?
  • What happens when it gets a number wrong?
  • Who is responsible for the advice?
  • Where do my clients’ details go?
  • What should we ask any AI vendor?
  • What doesn’t this do?

Questions it answers

What is AI-native compliance?
Our name for one idea: the checks are part of how a draft is written, not a review added at the end, where a tired reader has to spot every mistake in a document that already reads well.
Will AI make things up in a Statement of Advice?
It can, and it can be measured. In BackPro’s March 2026 test the same AI model made up answers on 15.8% of questions with no documents and 28.3% when handed the closest matching passages. With BackPro’s checks around it, the rate was 0.8%. It is one dated test on fund manager documents, and the method is published.
Who is responsible for advice drafted with AI?
The adviser. The best interests duty is in the Corporations Act, sections 961B to 961J, and outsourcing a function does not move the responsibility (ASIC RG 104.34). BackPro drafts; the judgement, review and sign-off stay with the adviser.

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