One in three investors would trust artificial intelligence as their financial advisor, according to a survey by the Certified Financial Planner Board of Standards. The survey revealed that 31% of investors would be comfortable implementing financial advice from a generative AI program without verifying it with another source. However, experts caution that AI outputs are not always reliable, as the algorithms that underpin generative AI compile data from potentially unreliable sources. Investors, especially those with complex financial lives, may also struggle to know what questions to ask the AI chatbot.
Generative artificial intelligence utilizes algorithms to create new content, including financial advice. While some investors are open to using AI as their financial advisor, there are concerns about the reliability of its recommendations. The survey found that 31% of investors would be willing to implement financial advice from a generative AI program without verifying it first. However, experts warn that AI outputs may not always be accurate or appropriate due to the quality of the underlying model and the data sources used. Additionally, investors who lack knowledge of the right questions to ask may struggle to effectively interact with AI chatbots.
Older investors, who generally have more complex financial situations and require tailored advice, are more satisfied with getting financial advice from generative AI compared to younger investors. However, they are also more cautious about the reliability of AI outputs. Ultimately, investors are encouraged to “trust but verify” when using AI for financial advice. With concerns about the quality and accuracy of AI-generated recommendations, it is important for investors to critically evaluate and cross-reference the advice provided by AI systems.