Mint has published an article examining whether AI can truly be trusted as a financial adviser, highlighting that while the technology is promising and accessible, the regulatory framework is still catching up.
The article explores a new frontier in retail investing made possible by a powerful innovation tool called the Model Context Protocol (MCP).
Zerodha has become the first to integrate MCP with Claude AI, allowing users to prompt the AI assistant to access and analyse their portfolios, and receive insights in plain English.
In this context, Mr. Sumit Agrawal of Regstreet Law Advisors & former SEBI Officer, was quoted saying “𝘳𝘦𝘨𝘶𝘭𝘢𝘵𝘰𝘳𝘺 𝘧𝘳𝘢𝘮𝘦𝘸𝘰𝘳𝘬 𝘢𝘴𝘴𝘶𝘮𝘦𝘴 𝘢 ‘𝘩𝘶𝘮𝘢𝘯 𝘢𝘨𝘦𝘯𝘵’ 𝘰𝘧𝘧𝘦𝘳𝘪𝘯𝘨 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘐𝘧 𝘈𝘐 𝘦𝘷𝘰𝘭𝘷𝘦𝘴 𝘧𝘳𝘰𝘮 𝘣𝘦𝘪𝘯𝘨 𝘢 𝘱𝘢𝘴𝘴𝘪𝘷𝘦 𝘵𝘰𝘰𝘭 𝘵𝘰 𝘢𝘯 𝘢𝘤𝘵𝘪𝘷𝘦 𝘳𝘦𝘤𝘰𝘮𝘮𝘦𝘯𝘥𝘦𝘳, 𝘵𝘩𝘦 𝘥𝘦𝘧𝘪𝘯𝘪𝘵𝘪𝘰𝘯𝘴 𝘰𝘧 ‘𝘢𝘥𝘷𝘪𝘤𝘦’, ‘𝘦𝘹𝘦𝘤𝘶𝘵𝘪𝘰𝘯’, 𝘢𝘯𝘥 ‘𝘪𝘯𝘵𝘦𝘳𝘮𝘦𝘥𝘪𝘢𝘵𝘪𝘰𝘯’ 𝘮𝘢𝘺 𝘳𝘦𝘲𝘶𝘪𝘳𝘦 𝘴𝘶𝘣𝘴𝘵𝘢𝘯𝘵𝘪𝘢𝘭 𝘳𝘦𝘵𝘩𝘪𝘯𝘬𝘪𝘯𝘨.” He further stated that “𝘢𝘴 𝘢𝘳𝘵𝘪𝘧𝘪𝘤𝘪𝘢𝘭 𝘪𝘯𝘵𝘦𝘭𝘭𝘪𝘨𝘦𝘯𝘤𝘦 𝘵𝘰𝘰𝘭𝘴 𝘣𝘦𝘤𝘰𝘮𝘦 𝘪𝘯𝘤𝘳𝘦𝘢𝘴𝘪𝘯𝘨𝘭𝘺 𝘢𝘤𝘤𝘦𝘴𝘴𝘪𝘣𝘭𝘦 𝘵𝘰 𝘳𝘦𝘵𝘢𝘪𝘭 𝘪𝘯𝘷𝘦𝘴𝘵𝘰𝘳𝘴, 𝘦𝘴𝘱𝘦𝘤𝘪𝘢𝘭𝘭𝘺 𝘵𝘩𝘳𝘰𝘶𝘨𝘩 𝘴𝘦𝘢𝘮𝘭𝘦𝘴𝘴 𝘪𝘯𝘵𝘦𝘨𝘳𝘢𝘵𝘪𝘰𝘯𝘴 𝘭𝘪𝘬𝘦 𝘵𝘩𝘰𝘴𝘦 𝘰𝘧𝘧𝘦𝘳𝘦𝘥 𝘣𝘺 𝘣𝘳𝘰𝘬𝘦𝘳𝘴 𝘴𝘶𝘤𝘩 𝘢𝘴 𝘡𝘦𝘳𝘰𝘥𝘩𝘢, 𝘵𝘩𝘦 𝘳𝘦𝘨𝘶𝘭𝘢𝘵𝘰𝘳𝘺 𝘱𝘦𝘳𝘪𝘮𝘦𝘵𝘦𝘳 𝘸𝘪𝘭𝘭 𝘯𝘦𝘦𝘥 𝘵𝘰 𝘦𝘷𝘰𝘭𝘷𝘦 𝘣𝘰𝘵𝘩 𝘪𝘯 𝘥𝘦𝘱𝘵𝘩 𝘢𝘯𝘥 𝘤𝘭𝘢𝘳𝘪𝘵𝘺”.
Additionally, Mr. Sumit Agrawal is of the opinion that the evolution could begin with a distinct regulatory sandbox or a light- touch code of conduct, especially for brokers and fintechs enabling such access.
Other Experts have also provided their views, available at https://lnkd.in/djwPhuUq