Four in ten Britons use AI chatbots for financial advice - and it's exposing a dangerous gap
Nearly 40% of British adults have turned to ChatGPT, Google Gemini, and similar tools for personal financial guidance, according to 2025 research from comparison platform Finder. One in six has sought investing tips and stock recommendations from generative AI. One in seven has used it for digital assets.
The problem: the quality of advice consumers receive is far worse than what they think they're getting.
Why chatbots fall short
Generative AI tools only work as well as the questions you ask them. Most users - without financial training - don't know what information to provide for meaningful guidance.
A qualified financial adviser spends time understanding a client's personal circumstances, family situation, risk tolerance, long-term goals, investment time horizon, and full financial picture. A chatbot interaction typically involves a few lines of text entered into a search bar.
Sky News tested this directly. Researchers gave ChatGPT, Microsoft Copilot, and Google Gemini £16,000 - roughly the average UK adult's savings - and asked what to do with it. The results were weak: familiar funds appeared without context, diversification was inconsistent, and recommendations contradicted stated strategies.
The real problem isn't desire - it's cost
Consumers clearly want to improve their finances. They're actively seeking guidance. The issue is that most have been locked out of the traditional advice market by price.
That gap is where targeted support becomes relevant. Newly regulated in the UK, targeted support sits between generic guidance and full personalised advice. Authorised firms can make recommendations to groups of consumers with shared characteristics and financial needs.
It's not comprehensive financial planning. But it addresses a genuine market gap that chatbots currently fill by default.
What financial services firms should do
The surge in AI usage for financial guidance signals something clear: consumers are ready to act. They need something better than a chatbot. Whether financial services firms will provide it remains an open question.
For professionals in finance, understanding how AI for Finance is reshaping consumer behaviour and regulatory expectations is essential to your role.
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