Clients Are Using ChatGPT to Double-Check: "Is My Advisor Right?"
Financial advisors are seeing more clients turn to generative AI tools like ChatGPT for a second opinion on their advice. These clients use AI not just to learn financial concepts but also to question their planner’s guidance. This trend cuts across demographics, though younger generations—especially Generation Z and millennials—are more comfortable using AI for financial advice.
A recent survey of 1,200 investors by Betterment found that over half (53%) use AI for financial advice, with 38% doing so weekly. Among these users, about half rely on AI to reduce emotional bias and assist in decision-making.
Financial Planning and Trust in AI
Despite the growing use, only 30% of investors surveyed actually trust AI for financial advice, and just 25% would allow AI to manage their investments. Nick Holeman, director of financial planning at Betterment, explains that younger people generally adopt new technologies earlier, but they also tend to have less at stake financially. Older investors, having built their nest egg over decades, see higher risk in relying on AI for managing their money.
AI as a Check on Advisor Advice
Advisors note that clients have always sought second opinions; the difference now is that AI is the source. Matt Chancey, founder of Tax Alpha Companies, points out that while AI can sometimes produce inaccurate results—known as hallucinations—current models are more often accurate than not.
Donald LaGrange, a financial advisor at Murphy & Sylvest Wealth Management, highlights the challenge of AI’s generalized advice when individual financial situations are highly nuanced. Errors often come from how clients phrase questions or apply AI-generated concepts.
Maggie Liu, director of Asian Wealth Advisory at Focus Partners, observes that clients from the tech industry frequently use AI to cross-check her recommendations. They input her advice verbatim into ChatGPT, then return with questions based on AI’s generalized or sometimes inaccurate outputs, which lack context.
Where AI Helps—and Where It Falls Short
As investors increasingly consult chatbots for financial advice, advisors emphasize the importance of setting realistic expectations. LaGrange says meeting clients where they are—including their AI use—creates opportunities to clarify which advice fits their unique situation and which does not. This approach can build trust and strengthen client relationships.
AI offers a useful starting point but cannot replace comprehensive financial planning. Cameron Valadez, co-founder of Planable Wealth, points out that clients often omit critical personal details—like potential inheritances, tax deductions, or health issues—that AI cannot account for without full context.
Advisors should clearly communicate AI’s strengths and limits. Valadez recommends letting clients know that AI is effective for gathering and summarizing data but should not be the sole source for making financial decisions.
- AI helps reduce emotional bias in investing
- Younger investors use AI more frequently but have less trust in it
- AI advice tends to be general and may miss personal nuances
- Clients often use AI as a second opinion but need guidance interpreting results
- Advisors can use AI discussions to deepen client relationships
For financial professionals seeking to understand AI’s role in advisory services and improve their approach to clients using these tools, exploring courses on prompt engineering and AI in finance can be beneficial. Resources like Complete AI Training's prompt engineering courses provide practical skills to better leverage AI tools responsibly.
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