Can you trust AI to give you financial advice?

According to research, AI still has a lot to learn about financial planning

Although artificial intelligence (AI) is starting to play a significant role in both our personal and professional lives, there are questions about its capacity to offer financial guidance.

Artificial intelligence (AI) tools like ChatGPT and Google Gemini are frequently used for online searches on anything from creating wedding speeches to organizing holidays and even drafting contracts.

The next obvious step is financial advice, which makes it accessible to people who might not know how to invest or who simply want to verify information like income tax thresholds.

Although there are indications of AI entering the financial sector, UK research has shown that AI's ability to provide financial advice is currently limited.

In order to determine how the technologies could respond to typical personal finance questions, consumer watchdog Which? recently tested six AI tools: ChatGPT, Google Gemini, Gemini AI Overview (AIO), Microsoft Copilot, Meta AI, and Perplexity. They discovered "inaccurate, unclear and risky advice which could prove costly if followed."

"Everyday use of AI is soaring, but we've found that when it comes to getting the answers you need, the devil is in the details," stated Which? technology expert Andrew Laughlin.

"Our research revealed far too many falsehoods and deceptive claims for comfort, particularly when relying on AI for crucial matters like legal or financial inquiries. A "

How trustworthy is financial advice from AI?

Which? posed 40 common questions to the six AI tools in September 2025 covering four major spheres of life, such as consumer rights and money and finance.

Responses varied in their accuracy.

For instance, ChatGPT and CoPilot overlooked the fact that the allowance is actually only 20,000 when Which? purposefully made a mistake in a question it posed regarding the ISA allowance, asking "How should I invest my 25,000 annual ISA allowance". Rather than fixing the mistake, both offered advice that might lead someone to oversubscribe to ISAs in violation of HMRC regulations.

In a different instance, researchers asked the AI systems to determine which tax code they ought to be on and how to submit an HMRC tax refund claim.

Alongside the free government service, ChatGPT and Perplexity offered links to high-end tax refund companies.

The companies that developed the AI tools all advised users to always double-check what they are being told and to report any errors.

ChatGPT, Google Gemini, Gemini AI Overview (AIO), Microsoft Copilot, Meta AI, and Perplexity have all been contacted by BFIA for additional feedback.

"When using AI, always make sure to define your question clearly and check the sources the AI is drawing answers from," Laughlin continued. Before making significant financial decisions or filing a lawsuit, always get expert advice on particularly complicated matters, especially when it comes to medical questions. The "

AI has previously faced criticism for its potential to provide financial advice.

In October, Investing Insiders, experts in financial education, tested the dependability of AI tools by asking them 100 financial questions on a variety of subjects, such as retirement, housing, and savings accounts.

Out of the 100 questions, 56% of the responses were accurate, 27% were misleading or deceptive, and 17% were incorrect. This indicates that 44% of the responses indicate that AI is not useful for British people looking for financial advice.

Inaccurate information about gifts, tax thresholds, and state pensions was discovered by the study.

"Our study shows the worrying trend that AI isn't providing sound financial advice when prompted," stated Antonia Medlicott, founder and managing director of Investing Insiders.

The fact that millions of Britons are doing this and being misled on a variety of subjects, from basic advice to savings accounts and significant life events like purchasing a home or retiring, is even more alarming. The "

However, Mitali Deypurkaystha, AI strategist at Impact Icon AI, adopts a different stance, attributing some of what they call failure to user error and a lack of financial literacy. You'll probably receive citations directly from gov . uk if you ask AI about the current UK state pension.

"The user's understanding of selecting the most appropriate AI tools is the other likely mistake.

"That's the 'GP-vs-surgeon' error. You wouldn't expect a general AI to be your personal financial advisor, just as you wouldn't ask your general practitioner to perform open heart surgery.

"They can't test any public, expert-level AI for financial advice." The true caution is to teach people how to use AI effectively rather than to not use it at all. Provide accessible, national AI literacy programs to the UK right away. A "

Is AI a reliable source of financial advice?

The Financial Conduct Authority (FCA) does not regulate AI tools, so they shouldn't be relied upon exclusively for financial advice.

However, it makes sense that consumers might look to technological tools for advice that could influence their financial choices.

"Using ChatGPT as your financial adviser is akin to Googling your symptoms and skipping the doctor," stated David Horowitz, head of financial planning and wealth management at Gerald Edelman. You may land on something that is dangerously off or something that is generally correct. AI is very good at processing data, but it doesn't know your objectives, your tax situation, your time horizon, or your true risk tolerance. Importantly, it cannot accept accountability if the advice is incorrect.

"The foundation of effective financial planning is subtlety. The distinction between an appropriate and inappropriate investment strategy, ISA structure, or pension plan is not theoretical. It has significant long-term financial repercussions. The "

He proposed that AI could be useful for conducting research, computing numbers, or simulating situations. However, accountability, regulation, and judgment are firmly in the hands of a human advisor.

"The prudent approach is to use tools like ChatGPT to enhance your understanding, not to replace expert, regulated advice tailored to your life," Horowitz continued. A "

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