Should You Rely on AI for Financial Advice? Here’s What Financial Experts Say

Advisor September 6, 2025

AI is everywhere right now, and yes, that includes your wallet. From budgeting to retirement planning, tools like ChatGPT, Google Gemini, and Claude are jumping into the world of personal finance. People are using them to track spending, manage debt, and plan the future. Sounds easy, right?

Take Jennifer Allen, a realtor with $23,000 in debt. She used ChatGPT to build a daily action plan. Her results? She cut her debt down to $5,000. Impressive! But is that the full picture? Not exactly.

AI bots can crunch numbers fast. They can spit out spreadsheets, suggest savings plans, and answer 2 a.m. money questions without judgment. But experts say it is not the hero of your financial story. AI doesn’t really know you. It doesn’t get your goals, your fears, or the random curveballs life throws your way. It just sees data.

And sometimes, that data is wrong.

Tools like Claude or Copilot may “hallucinate.” That is tech-speak for making stuff up. Yes, they sound smart. Yes, they write well. But they are not always accurate. And the companies behind them? They actually tell users to fact-check everything with real professionals. That should tell you something.

AI Lacks Context, Personalization, and Emotional Insight

One of the key issues is that AI gives general advice. It doesn’t look at your taxes, your job security, or the fact that your kid might need braces next year. It doesn’t know your appetite for risk or that you just got a raise.

Bert / Pexels / Relying on AI for financial advice is like asking a stranger for life advice based on your LinkedIn profile. Close, but no!

Let’s say you are looking into buying a house. AI might show you mortgage calculators and average interest rates. Sounds helpful, right? But what if you are self-employed, or your credit score just dipped? What if there are local grants available? AI likely won’t catch those specifics. That is when the advice can go from “kind of useful” to flat-out misleading.

Now, think about investments. The market shifts fast. AI might offer a safe-sounding plan. But what if it is using outdated or biased data? Or worse, what if it misses the latest news or policy changes that affect your portfolio? These are decisions that can cost you thousands.

Use AI to Learn, Not to Lead

Tori Dunlap, the founder of Her First 100k, puts it simply: AI is like a “digital robotic personal assistant.” It can give you a starting point. But it is not your coach. It won’t push back and won’t ask the hard questions: “Wait, are you sure this aligns with your long-term goals?” That is the human edge.

Privacy also matters. Some AI platforms say they protect your data. Others? Not so much. If you are feeding your chatbot sensitive info like income, bank accounts, or loan details, you could be exposing more than you think. Experts say to keep personal financial data out of AI conversations. It is not worth the risk.

Olly / Pexels / Use AI like a smart notebook. Let it help you brainstorm ideas, draft a budget, or compare general strategies. But don’t let it call the shots. Use it to learn, not to lead.

Always run big decisions by a certified financial advisor. That is especially true for stuff like investments, taxes, loans, or retirement.

Plus, don’t just trust AI because it sounds confident. If it gives a vague or overly slick answer, that is a red flag. Real financial advice should be clear, specific, and tied to your unique situation. If it is not, question it.

Use AI to start the conversation. But always let a real person, ideally an expert, finish it.