More than half of Americans use AI for finances. Here's what experts say about the risks.
More than 55% of Americans reported using AI tools to help with financial management decisions as of early 2026, according to TD STORIES. But experts warn that these tools work best as a second opinion, not a replacement for human judgment.
Manjeet Rege, director of the Center for Applied Artificial Intelligence at the University of St. Thomas, said AI "could be your co-pilot but should not be your autopilot when investing your money."
Where AI adds real value
AI handles certain financial tasks well. Rege identified three specific uses where the technology performs effectively:
- Building and adjusting budgets
- Identifying spending patterns in transaction data
- Running "what-if" scenarios for financial planning
AI can also translate or summarize dense financial documents, making complex information easier to understand.
Privacy concerns demand caution
The biggest risk involves data security. Rege warned against uploading financial statements to cloud-based AI tools. "AI has a long memory and certainly you do not want that information to be given away," he said.
Personal finance differs fundamentally from generic tasks. "Personal finance and investing is personal for a reason, and AI is pretty generic," Rege said. Long-term financial decisions require context about individual circumstances that AI cannot fully grasp.
For finance professionals evaluating these tools for clients or internal use, the key is understanding what AI can and cannot do. Use it to process data and test scenarios. Don't use it as a substitute for professional judgment on sensitive decisions.
Learn more about AI for Finance or explore how to apply these concepts through an AI Learning Path for Data Analysts.
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