Broadridge Launches AI Disclosure Simplification Project in Ireland

Broadridge is developing artificial intelligence tools to simplify financial disclosures in Ireland, with support from IDA Ireland, addressing a gap between the scale of the country’s funds industry and limited retail investor participation. The initiative converts technical investment language into clearer formats while maintaining regulatory accuracy, according to the company.

Ireland hosts more than €5 trillion in fund assets and remains a central hub for exchange-traded funds in Europe, yet participation from retail investors remains limited, with financial literacy identified as a key constraint. Research cited in the project shows that only 18% of EU citizens demonstrate high financial literacy, with disclosure documents often written in language difficult for non-professional investors to interpret.

Market Context and Participation Gap

The gap between available investment products and investor understanding has implications for capital allocation, particularly as household savings remain concentrated in deposit accounts. Across Europe, approximately €14 trillion sits in household savings accounts, according to Broadridge.

Denis Curran, Head of International Financial Services, Emerging Business and Engineering and Green Economy at IDA Ireland, stated: “Ireland is a leading international centre for innovation in financial technology. We are delighted to support Broadridge in its mission to enhance financial literacy through the power of artificial intelligence. I wish the team at Broadridge every success with this innovative project.”

AI Application to Financial Language

Broadridge said the project will explore how artificial intelligence can convert complex disclosures into plain-language formats, allowing retail investors to better interpret product features, risks, and potential outcomes. The approach focuses on maintaining compliance with regulatory requirements while changing how information is presented, including restructuring content and reducing reliance on technical terminology.

Stephen Johnston, Senior Country Officer for Ireland at Broadridge, commented: “This partnership with IDA Ireland positions Broadridge at the centre of a national initiative to leverage technology to make sophisticated investment products genuinely accessible to retail investors. We’ve analysed investment disclosures from the 50 largest UK asset managers and found that nearly half were written at an academic level that would be difficult for most retail investors to understand. Across Europe, around €14 trillion sits in household savings accounts. At a time when purchasing power is eroding due to inflation, too many of these savers lack clarity and confidence in how best to realise their investment potential. By applying AI to create plain-language communications while maintaining regulatory compliance and accuracy, we can measurably boost engagement and help move Irish savers from deposit accounts into long-term investments that can support their financial futures.”

The use of AI in this context reflects a broader shift toward automating interpretation rather than just data delivery, particularly in areas where regulatory documents are standardized but difficult to read.

Regulatory Alignment

The project aligns with ongoing efforts at the European level to improve financial literacy and simplify disclosures. Regulatory frameworks such as PRIIPs and MiFID have introduced standardized documents, but questions remain about their accessibility to retail users. Broadridge said its research will examine how simplified communication can be implemented within existing regulatory structures, rather than requiring changes to underlying rules.

The initiative also connects to broader policy objectives aimed at increasing retail participation in capital markets, particularly as inflation affects purchasing power and savings behavior. Results from the study are expected to be shared with regulators and industry participants, contributing to discussions on how disclosure standards can evolve.

Operational and Implementation Considerations

For asset managers and service providers, simplifying disclosures may require changes to content production, compliance review processes, and technology infrastructure. Integrating AI into these workflows introduces both efficiency gains and oversight requirements.

The effectiveness of simplified language will depend on whether it improves investor understanding without reducing the accuracy or completeness of information. Balancing clarity with regulatory precision remains a key constraint.

In the broader market, increased understanding could influence how retail investors allocate capital, potentially shifting funds from deposits into investment products. This would affect both distribution channels and product demand.

Broadridge said its Dublin-based team will support the initiative, working with asset managers and fund administrators across regulatory frameworks including PRIIPs, MiFID, and Solvency II.