AI in Corporate Secretarial Services for Investment Funds: Practical Use, Real Limits, and Governance Reality

Artificial Intelligence is no longer experimental. Across industries—from finance to compliance to operations—its use has become a necessity rather than a differentiator. Corporate Secretarial (CoSec) services in the investment funds industry are no exception.

The relevant question for fund managers, boards, and governance professionals is no longer whether AI is being used, but how it is used, controlled, and supervised—and by whom.

This article explores the practical application of AI in CoSec services, the real advantages, the non-negotiable risks, and why senior-led boutique CoSec firms are uniquely positioned to deploy AI safely and effectively.

AI in CoSec: What “use” actually means

In a Corporate Secretarial context, AI is not about replacing judgment or decision-making. Its value lies in supporting execution, for example:

• drafting first versions of minutes, resolutions, and standard documents

• consistency checks across governance documentation

• summarisation of long board materials for internal preparation

• cross-checking references, dates, and structural logic

• supporting internal knowledge retrieval and precedent identification

Used correctly, AI acts as a force multiplier, not a decision-maker.

The confidentiality baseline: local and controlled AI

For investment funds, confidentiality is not optional.
This immediately excludes uncontrolled, publicly accessible AI tools from professional CoSec usage.

A secure and defensible model typically involves:

• locally installed AI models (on-premise or private infrastructure)

• no client data shared with public AI platforms

• controlled prompts, outputs, and access rights

• auditability of usage

This approach aligns closely with the standards already applied by large institutions—and can be implemented just as effectively within smaller, well-structured firms.

Key advantages of AI adoption in boutique CoSec firms

1. Immediate senior oversight of AI output

In small, senior-led CoSec firms, AI-assisted work is reviewed directly by the same partners or senior professionals responsible for delivery.

This means:

• AI hallucinations are detected immediately

• inconsistencies are corrected before documents leave the firm

• judgment is applied without escalation delays

There is no loss of time or clarity through hierarchical chains.

2. Faster turnaround without sacrificing quality

AI significantly reduces time spent on repetitive drafting and formatting tasks.

The saved time is reinvested in:

• deeper review

• governance judgment

• contextual alignment with the fund’s broader narrative

Speed improves, but accountability remains human.

3. Consistency across large document populations

AI helps maintain consistency across:

• recurring board packs

• multi-entity structures

• repeated resolutions and registers

This is particularly valuable for funds with:

• SPV-heavy structures

• credit or transaction-driven vehicles

• frequent corporate actions

4. Scalability without compromising confidentiality

When deployed locally and securely, AI allows small CoSec teams to:

• absorb workload peaks

• support multiple strategies

• maintain predictable delivery

This creates enterprise-level operational resilience without enterprise-level bureaucracy.

5. Alignment with modern governance expectations

Regulators, auditors, and investors increasingly expect:

• structured documentation

• consistency across records

• traceable governance logic

AI supports these expectations—when used responsibly and transparently.

The non-negotiable risks (and why they must be acknowledged)

AI is not neutral. Ignoring its limitations creates governance risk.

1. Hallucinations and false confidence

AI can produce outputs that appear coherent but are factually or legally incorrect.

In CoSec work, this can affect:

• legal wording

• factual accuracy

• alignment with prior decisions

Unchecked, this risk is unacceptable.

2. Over-reliance and deskilling

If AI output is accepted uncritically, professional judgment erodes.

This is particularly dangerous in governance functions where:

• nuance matters

• regulatory interpretation evolves

• context is critical

AI must support expertise—not replace it.

3. Data leakage and confidentiality exposure

Using public or poorly controlled AI platforms can unintentionally expose:

• client names

• transaction details

• governance structures

This risk alone disqualifies many mainstream AI tools for CoSec use.

4. False sense of equivalence across organisations

AI does not equalise firms automatically.

A poorly governed AI setup in a large organisation can be riskier than a tightly supervised AI model in a small firm.

Why senior-led boutique firms mitigate AI risks effectively

Small, partner-driven CoSec firms bring structural advantages when using AI:

• the same individuals who design workflows review outputs

• accountability is direct and personal

• judgment is applied immediately, not escalated

• AI is treated as a tool, not a substitute

• governance standards are embedded, not abstracted

In this environment, AI strengthens governance instead of diluting it.

AI does not replace trust — it amplifies how trust is delivered

For investment funds, trust is built on:

• accuracy

• confidentiality

• continuity

• defensible decision-making

AI can enhance all of these—but only under strict professional control.

The future of CoSec services is not “human vs AI”.
It is experienced professionals using AI responsibly to deliver better governance outcomes.

AI in Corporate Secretarial services is not a trend, it is an operational reality. The real differentiator lies in how safely, transparently, and intelligently it is implemented.

When used within a controlled, senior-led framework, AI allows boutique CoSec firms to operate at the same technical level as large organisations, while retaining the speed, accountability, and judgment that governance demands.

In the end, governance remains a human responsibility. AI simply helps ensure it is delivered with greater precision.