How Safe Is Your Financial Data with AI Chatbots? What to Know Before You Share

Using AI Chatbots for Financial Advice

Generative AI tools like ChatGPT are becoming common for personal finance management, with nearly half of Americans using or considering them to handle their money. Many users share personal details casually with these chatbots. However, unlike private conversations with human advisors, AI chat sessions are logged, potentially stored indefinitely, accessible by third parties, and may be exposed through legal requests. What you type could reach far beyond your intended audience.

Key Takeaways

• Almost 50% of Americans have used or are thinking of using generative AI tools for personal finance, based on an Experian survey.
• Inputs in chatbot sessions are often logged and accessible not only for model training but also through data breaches or legal means. Nothing typed is fully private.

Users ask AI chatbots simple, everyday questions about finances. From creating monthly budgets to evaluating retirement plans and investment options, these tools explain complex topics like index funds or strategies for paying down high-interest debt. They can even provide recommendations adjusted to your financial knowledge.

AI platforms can analyze documents such as financial statements, tax data, and spreadsheets. For example, you can upload PDFs or images of financial reports and ask for detailed analysis like fundamental reviews, year-over-year trend comparisons, or spotting subtle warnings in earnings transcripts.

Despite these capabilities, human oversight remains essential. AI can misinterpret numbers, which might lead to incorrect budget forecasts or investment advice with real financial consequences. Experts note that large language models (LLMs) need specialized financial training to meet professional advice standards, which current consumer AI versions lack.

What Not To Share With Generative AI

While AI chatbots offer convenience, they come with privacy and security risks. Avoid sharing sensitive financial details, including:

• Login credentials and passwords: These are keys to your online financial accounts. Entering them into AI tools risks unauthorized access if logs are compromised. Use password managers and two-factor authentication instead.
• Bank and investment account numbers: These are not secured by banking-grade encryption in AI chats and could be intercepted or leaked, leading to fraud or identity theft.
• Social Security numbers or national IDs: These are permanent identifiers that, if exposed, can enable identity theft or fraudulent credit lines.
• Full legal name, address, and birth date: Personal details can be combined by malicious actors for phishing, scams, or stalking. Use anonymized or hypothetical data when interacting with AI.
• Detailed tax and financial documents: Uploading sensitive tax returns or income reports exposes your earnings and deductions, which could be exploited for fraud or blackmail.

The Bottom Line

AI chatbots can assist with financial insights, budgeting, and education but should never be treated as secure vaults for sensitive data. Always assume AI chat logs are public-facing. Never share personally identifiable or confidential financial details, and confirm important advice with qualified human professionals.

For those interested in further AI skill development in finance, Complete AI Training offers courses and resources tailored to finance professionals working with AI tools.