Harnessing Gen AI in Finance: Balancing Innovation with Compliance

The finance sector is experiencing rapid transformation in 2025, driven partly by the rise of generative AI (gen AI). The uptake of gen AI tools in the workplace is unsurprising, given their promise of increased efficiency and enhanced insights. From summarising regulatory reports to analysing financial datasets, gen AI is fast becoming embedded in day-to-day workflows, driving work outputs and decision-making.

Recent research by the Copyright Licensing Agency (CLA), surveying almost 4,000 UK professionals, found that 61% of are using gen AI in the workplace, with 4 in 5 using it weekly. Among these users, over 75% admitted to copying and pasting third-party material, such as published reports or market analyses into gen AI prompts. In an industry where data security, compliance and reputational integrity are vital, these practices present a risk to copyright compliance.

As financial institutions explore the benefits of gen AI, they must consider the legal and ethical implications of using third-party content as prompts, since copying published material into gen AI tools likely requires copyright permission.

Good governance in the gen AI era

In finance, where regulatory due diligence and governance are paramount, copyright compliance should be integrated into broader risk management and digital strategies. Implementing a robust governance framework that supports the appropriate use of gen AI can empower finance organisations to realise the benefits of this technology without compromising compliance.

Recognising the value of published content, such as financial publications and industry research papers, is integral. These materials are often copyright-protected and cannot be reused in gen AI prompts without appropriate permissions. Our research revealed that only 38% of gen AI users expressed concern about including third-party material in their prompts, highlighting a significant knowledge gap and potential compliance risk.

New workplace gen AI permissions for the finance sector

To support finance organisations in this evolving landscape, CLA has introduced new permissions in its CLA Business Licence, effective 1 May 2025. These permissions enable organisations to lawfully use copyright-protected published content from participating publishers in gen AI tools to generate outputs, subject to the terms and conditions of the licence.

This shift offers a practical, proactive route to compliance whilst embracing the innovation that gen AI has to offer. Financial institutions can now explore the potential of gen AI with confidence, knowing that their use of high value published content is both lawful and ethically sound. The new permissions also ensure that creators and rightsholders continue to be remunerated, supporting the creative ecosystem to produce more quality content.

Why governance is crucial within finance

Good governance around gen AI use extends further than copyright itself. It is vital to managing operational, reputational and data risks. Assuming internal or external content can be freely used in gen AI tools is false and potentially damaging. If proprietary content is retained or reused by gen AI tools, organisations could face serious regulatory consequences.

Copyright infringement is just one concern; data protection breaches and loss of confidential information are equally challenging. A 2024 study by Harmonic Security Inc revealed that nearly 1 in 10 gen AI prompts contained sensitive commercial information, including customer records, employee details, and legal and financial data. Over half of these prompts were entered into the free tier of ChatGPT, with 45.77% involving customer data. This poses a significant risk, as such information could be used to train AI tools, potentially leading to data breaches and copyright infringements.

Developing a governance framework for gen AI

To traverse this evolving risk landscape, financial organisations should take a structured approach to gen AI governance:

• Copyright and Content Licensing: Ensure employees understand what third-party content is protected by copyright and ensure appropriate permissions.
• Training and awareness: Deliver training on gen AI best practices, including copyright compliance courses (which CLA offers) and data security.
• Tool evaluation and security: Regularly assess the security and compliance credentials of gen AI tools, especially in relation to data handling and reuse.
• Usage policies: Develop internal policies on the use of gen AI tools, specifying approved tools and permissible content.
• Monitoring and auditing: Bring in systems to track how gen AI tools are used across the organisation, identifying potential risks and adherence to policy.

A measured approach for a compliant future in copyright

The finance sector has much to gain from gen AI, but success depends on balancing innovation with responsibility. Through internal policies, frameworks and appropriate licensing, institutions can adopt gen AI confidently and ethically, allowing their teams to work smarter while protecting the rights of creators and upholding essential compliance standards.

By integrating copyright governance into gen AI strategies from the outset, finance organisations can set a precedent in responsible AI usage. This approach helps mitigate risks, protect data, and foster trust in a rapidly evolving digital environment.