Why AI can’t replace your financial adviser

Over the last few months, talk of AI has been everywhere, particularly models such as ChatGPT.

From helping jobseekers write a CV, to putting together a weekly shopping list, AI is gradually becoming a much bigger part of people’s lives.

With the progressive use of AI, it’s only natural that some might consider using it to help manage their finances.

We would urge strong caution if you are thinking of using an AI tool instead of a living, breathing financial adviser.

Let us explain why.

A human being knows you and your goals

Our financial planners treat each client as an individual and we offer advice on that basis. Any recommendations we make will be based on your specific needs, circumstances, goals and priorities.

A financial planner will also take a holistic look at your situation, ensuring each step you take works to support your larger objectives.

Whilst AI does respond to prompts. It simply won’t know about your needs as an individual, nor will it acknowledge your uniqueness as a real person. So, whilst it may provide money-saving tips, it cannot help you work towards your long-term financial goals.

With that in mind, AI can’t show the same level of support and empathy as a human being. For some, getting your finances in order can be a daunting task, especially when complex terminology is being used.

A financial adviser is here to support you every step of the way and will speak with you appropriately depending on your circumstances, how you are feeling and what you are discussing.

AI offers general, rather than specific advice

Each person has their own financial circumstances, no two are the same, which is why financial planners offer bespoke advice tailored around each individual client.

Whilst you can ask ChatGPT certain questions, it can only give you general advice based on other peoples experiences and existing datasets. Because of this, the advice it gives you might not be the best option for you if you’re working towards a particular goal.

So AI can be helpful with defining what certain terms mean, that doesn’t mean it can offer good advice. ChatGPT even acknowledges this by answering with the disclaimer that it can “provide information and insights on personal finance”. But it’s important to remember ChatGPT also states it cannot “provide personalised financial advice”. This itself supports the idea that ChatGPT cannot provide financial advice that takes your circumstances and needs into account.

As we have covered, each person has their own financial circumstances and no two are the same. Which is why our financial planners offer bespoke advice tailored around each individual client.

Financial specialists offer reliable advice

Professional advisers are regulated and are required to adhere to the highest professional standards. Meaning you can trust them to provide accurate information and guidance, along with acting in your best interests.

With AI tools, you can’t be sure which sources they are drawing upon to produce an answer. So there’s a risk that unreliable, unverified and inaccurate information is being generated. If there’s one thing we can agree on, it’s that we want accurate information when it comes to our finances.

Further concerns have been raised about AI algorithms having the potential for bias, which may influence the advice given.

Ultimately, the human element is impossible to replicate.

It’s important to remember that an AI tool can’t understand you, your current situation and ambitions in the same way. It can’t build a meaningful relationship with you and use that information to determine the advice it gives.

Crucially, you can’t be sure that an AI tool is providing trustworthy and accurate information.

If you have any questions about making your money work harder for you and getting the most out of your investments, please get in touch with our friendly team of human advisers. We will be happy to help you achieve your goals and help you make the right decisions.


* Investments carry risks. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

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