Canadians Increasingly Use AI for Financial Planning: What Finance Professionals Should Know
A growing number of Canadians are turning to generative AI tools for help with financial planning. These tools assist users with tasks like budgeting, learning about investments, and developing savings strategies. However, experts caution that AI chatbots often lack the nuance required for personalized financial decisions, especially for those without a foundational understanding of finance.
AI as a Support Tool, Not a Replacement
Daniela Furtado, a Toronto-based marketing agency founder, uses ChatGPT extensively—not just for work tasks but also for managing her personal finances. She emphasizes that the key to effective AI use is providing accurate data and engaging in an ongoing dialogue with the tool, much like consulting a knowledgeable friend.
Furtado’s approach involves uploading her expense spreadsheets to ChatGPT and asking targeted questions such as:
- “What percentage of my spending goes to dining out versus groceries?”
- “Are there any spending trends I should notice?”
- “If I want to save a specific amount, where should I realistically cut back?”
Her financial decisions are still anchored by advice from professionals, including her CPA and financial advisor. For example, before exploring investment properties, Furtado consulted experts to determine an affordable mortgage range and then used AI to refine her property search based on specific criteria.
Benefits and Limitations of AI in Finance
According to a 2024 BMO poll, 33% of Canadians who use AI for financial management employ it to:
- Learn about personal finance topics
- Create or update household budgets and financial plans
- Discover new investment strategies
- Build savings
Anthony Tintinalli, head of specialized sales at BMO, points out that AI excels at providing information and helping establish planning habits but struggles with the emotional side of money management. AI tools lack the ability to incorporate historical context and personal priorities that a professional advisor would consider.
Josh Sheluk, portfolio manager and chief investment officer at Verecan Capital Management, adds that beginners may find AI less helpful because they might not know the right questions to ask. AI tends to offer solutions based solely on input without probing deeper into personal circumstances, which is critical for meaningful financial advice.
Privacy and Data Security Considerations
Using AI for financial tasks requires sharing sensitive data, which raises privacy concerns. Tintinalli advises caution, recommending that personal information not be shared outside of secure environments or firewalls. While some users like Furtado appreciate the control AI offers in analyzing their data, others may hesitate to upload financial details to chatbots.
The Role of Financial Professionals in an AI-Driven Environment
Financial advisors play a crucial role in uncovering client priorities, knowledge levels, and unique circumstances before offering guidance. Sheluk notes that AI tools often jump straight to solutions without this personalized approach.
Tintinalli emphasizes that AI should complement, not replace, human advisors. He suggests meeting with a financial planner to balance emotional factors, individual values, and financial goals alongside AI-generated insights.
Key Takeaways for Finance Professionals
- AI tools are useful for organizing data, generating ideas, and reinforcing budgeting habits.
- Clients with basic financial knowledge benefit most from AI-assisted planning.
- Human advisors provide essential context, emotional balance, and personalization.
- Data privacy and security remain top priorities when using AI for finance.
- Encourage clients to use AI as a supplement rather than a sole decision-maker.
Finance professionals looking to deepen their understanding of AI applications in their field might explore specialized training courses. For those interested, Complete AI Training offers resources focused on AI tools relevant to finance roles.
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