More than half of U.S. adults have used artificial intelligence for financial advice, according to MIT. Gate City Bank officials say AI can help explain financial topics and build budgeting strategies, but it should supplement, not replace, guidance from a human professional.
Kim Settel, Gate City Bank executive vice president and chief retail banking officer, said AI works best as a research assistant. "Doing some pre-work with artificial intelligence can sometimes give you that baseline of, here's some questions I should ask, and then you're more prepared when you go and speak with an actual professional that can provide that fluency," she said.
The bank advises against handing over too much sensitive information to AI tools. Instead, providing specific and detailed questions yields the most useful feedback. This approach keeps the user in control while still getting the benefits of automated insights.
Where AI fits in money management
AI can break down complex financial concepts into plain language and suggest budgeting frameworks based on a user's income and expenses. These capabilities make it a strong starting point for people who feel overwhelmed by financial jargon. But the output is only as good as the input, and the technology lacks the context a human advisor brings to a long-term relationship.
What to keep private
The bank cautions users not to share account numbers, Social Security numbers, or other personally identifiable data with consumer AI platforms. Even when a tool promises encryption, the risk of a breach or misuse remains. The same principle applies to any digital service, but AI's conversational nature can make users drop their guard.
The professional's role
Financial advisors do more than crunch numbers. They interpret life changes, tax implications, and emotional factors that a machine cannot weigh. AI might suggest a savings target, but a human advisor knows when a client's job change or health event should shift that target. "That fluency" Settel mentioned comes from years of experience and regulatory knowledge.
For finance professionals, the rise of AI means clients are walking into meetings with more baseline knowledge. That can make conversations more efficient, but it also requires advisors to correct misinformation and explain why a generic recommendation might not fit a specific situation. Training in how to integrate AI tools into practice is becoming part of the job. AI for Finance resources can help professionals stay current on what these tools can and cannot do.
Why this matters for finance professionals
Clients are already using AI for money advice, whether advisors like it or not. The MIT statistic means that in any given client meeting, there's a good chance the person has already queried a chatbot about their retirement or debt. Advisors who understand what AI does well-and where it falls short-can guide clients toward using it as a supplement rather than a substitute. That positioning protects the advisor's value while meeting clients where they are.
Your membership also unlocks:
