AI chatbots are offering financial advice. Should you trust them?
A significant number of Americans are turning to AI chatbots for financial advice, with some users finding the guidance helpful for managing debt and savings. However, experts note that many of these users are already financially overextended, raising concerns about the reliability and risks of automated financial planning.
Why it matters
The reliance on AI for critical financial decisions could lead to systemic risks if users follow inaccurate advice, especially among vulnerable populations.
If you ask an AI chatbot for advice on how to revive your wilted tomato plant or for a movie recommendation, even a bad answer has pretty low stakes.
Still, some Americans are giving it a try. The data analytics company JD Power asked 4,000 people about their financial health and found that 40% of them had turned to AI in the prior three months to help manage their finances. More than a third of those using AI said they found the advice helpful in making smarter financial decisions, comparable to the share of those who found their bank's advice helpful.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in