Study: AI’s Financial Advice Can Be Inaccurate and Biased, Varies by Program

Last updated Jul 7, 2026

Are AI Platforms Reliable for Personal Finance Advice? – A Research Study Overview

Effectiveness of AI in Providing Personal Finance Advice

In the realm of personal finance, research shows that advice given by artificial intelligence (AI) can be skewed or inaccurate. These findings emerge from an in-depth study on seven generative AI platforms widely utilized by consumers.

The Research Study: Analyzing AI Platforms

The research study scrutinized freely available versions of AI platforms, such as ChatGPT, Claude, Copilot, DeepSeek, Gemini, Meta AI, and Perplexity. It revealed a “significant variation” in the responses of these generative AI (GenAI) platforms regarding matters like emergency savings, asset allocation, and retirement portfolio withdrawals. Despite their assured tone, the GenAI responses were often incomplete, misleading, or incorrect, as per the paper published recently in the Journal of Financial Planning.

Americans Trust AI for Financial Advice

An interesting finding is the growing reliance of Americans on AI for financial advice. According to a recent survey by Intuit Credit Karma, 66% of Americans who have used GenAI have sought it for financial guidance. The number jumps to 82% for both Gen Z and millennials.

Experts caution that while AI is adept at providing high-level overviews of financial topics, users should be cautious of its limitations. Some programs may offer incorrect answers due to algorithmic “hallucination”.

Limitations of AI for Personal Finance

Rules guiding AI are sensitive to user input, indicating that small changes in prompts can lead to variations in recommendations. Moreover, AI does not have a fiduciary duty to users, implying it is not legally required to provide advice that serves users’ best interests. These limitations have been pointed out in several other research studies as well.

For instance, in a 2024 study, researchers examined ChatGPT’s ability to provide financial advice. The tool was deemed a useful “first stop” for households seeking financial advice. However, its generic recommendations often missed out on certain crucial information, leading the researchers to advise careful scrutiny and assessment of the AI’s recommendations.

Key Findings from the Latest Study

The latest research in the Journal of Financial Planning revealed substantive variations in AI advice on topics like emergency savings and asset allocation. And while the recommendations often aligned with standard financial principles, differences were found across platforms. The researchers concluded that GenAI could be a good starting point but should not replace professional financial advice.

It’s important to note that GenAI tools are still evolving, and results may vary in future studies. Also, paid versions of GenAI models might offer different outputs from the free versions evaluated in this study.

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