Two-thirds of Americans use AI for financial advice. Here's what experts say you should know.
A majority of Americans now turn to AI for financial guidance, but experts warn against treating it as a complete solution for money decisions. A September report from Credit Karma found that 66% of Americans have used generative AI for financial advice, with younger generations leaning on the technology even more heavily-82% of Gen Z and 82% of millennials report using AI for financial guidance.
The most common uses are basic financial education and goal setting. People ask AI how to save for retirement, invest in the stock market, and understand concepts like the difference between Roth and traditional IRAs.
AI can hallucinate. That's a problem for big decisions.
AI excels at explaining fundamentals. It struggles with decisions that require judgment and accuracy.
"When you're making a big decision, it's kind of scary to rely on AI, which can hallucinate," a CBS News business analyst said in a recent interview. Hallucinations-when AI generates plausible-sounding but false information-pose real risks in financial contexts where a single error can cost money.
Finfluencers on social media present a separate problem. Most lack formal credentials and are selling something, whether that's a course, a product, or their own brand.
Privacy matters more than most people think
A 2025 Stanford University study found that AI chatbots can retain information shared in conversations indefinitely and use it to train their models. Finance professionals handling sensitive data should read privacy policies carefully before entering financial details into any AI system.
The risk extends beyond the chatbot itself. Information you share could be stored, analyzed, or used in ways you don't anticipate.
What to do instead
For actual investment decisions and retirement planning, professionals recommend starting with your company-based retirement plan. Large investment firms can guide you on index funds and exchange-traded funds. Money management apps like Monarch and Honeydue offer structured approaches without the hallucination risk.
A trusted third party-whether a relative, financial advisor, or colleague-provides the unbiased perspective AI cannot.
"Use AI for education," experts say. "Don't rely solely on technology for decisions."
For finance professionals looking to understand how AI fits into financial strategy and risk analysis, explore AI Learning Path for Finance Leaders or AI for Finance courses and certifications.
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