AI for Financial Guidance: Usage and Trust

As revealed in the latest Gallup survey, conducted in collaboration with financial services firm Edward Jones, a portion of U.S. adults are utilizing artificial intelligence (AI) for financial advice. However, AI is still not the most trusted source for financial guidance.

According to the survey, about 20% of Americans who sought financial advice in the past year, leveraged AI. However, only 30% of adults demonstrated “some” confidence in AI’s financial management abilities, including a mere 3% who expressed a great deal of trust.

Trusted Sources of Financial Advice vs. Actual Utilization

An interesting disconnect was observed between the resources U.S. adults trust for financial advice and those they actually use. The survey found that while 80% of adults have at least “some” confidence in professional financial advisers, only about one-third actually consulted them for financial advice. Most preferred to rely on their own internet research (73%).

Balancing AI and Traditional Financial Advice

As AI’s prevalence in financial matters increases, experts recommend a balanced approach. According to Taha Choukhmane, associate professor at MIT’s Sloan School of Management, AI can be an instrumental starting point in a learning journey, complemented with other trusted sources of advice. “I would encourage people to use AI to explain and define,” Choukhmane suggests.

Financial Advice: Diverse Sources and Preferences

The Gallup-Edward Jones survey highlights that most Americans have sought financial guidance from various sources over the past year. Some relied on AI, internet research, and financial advisers, while others consulted family members or turned to news and social media. The choice of source also differed among age groups with younger generations more likely to leverage AI, while older adults preferred professional advisers.

AI in Financial Advice: Affordability and Accuracy

Younger adults, deterred by the cost of hiring a financial adviser, often resort to AI due to its affordability. However, it’s important to remember that AI interacts based on specific user prompts, and its advice can vary based on the questions asked.

Legal Responsibilities: AI vs. Certified Financial Planners

While AI can serve as a valuable research tool, some financial experts express concerns regarding its legal responsibilities. Certified financial planners, unlike AI tools, have a legal responsibility to provide apt advice. Decisions made based on AI advice are ultimately the user’s responsibility. “Fiduciary responsibility is very real,” states Bobbi Rebell, a certified financial planner and founder of Financial Wellness Strategies.

Article by Morga for the Associated Press.