Artificial intelligence has become a go-to resource for a wide variety of situations. Holiday shoppers used AI at record rates to help with purchase decisions and research deals this year.
But what about using AI as your financial planner? Does it have the nuance and intelligence to give you sound financial advice? That’s a question we posed to experts, who were quick to point out the benefits and drawbacks of relying on AI for your money matters.
How AI can give you an edge
Asking a platform like ChatGPT or Claude to create a financial plan has its benefits, said Jonathan Vance, owner of Missouri-based Vance Financial Planning. To start, it can provide lightning-quick solutions tailored to your prompts and what it knows about you.
“AI’s primary edge is greater speed and personalization,” Vance said in an email to The Independent. “Traditional search engines weren’t as good at providing depth to more specific queries, like what state-specific tax implications would apply to a Missouri resident, for example.”
Samyr Laine, managing partner at venture capital firm Freedom Trail Capital, also pointed to AI’s speed as a benefit. Also, AI makes financial education available to all, he told The Independent in an email.
“AI can give you insights in seconds that would take hours to research on your own: budgeting breakdowns, investment comparisons, [and] tax strategies,” Laine said. “For people who can’t afford a financial advisor or don’t know where to start. That’s huge. It democratizes financial literacy.”
Dr. Erika Rasure, chief financial wellness advisor at debt consolidation firm Beyond Finances, emphasized the democratization aspect of AI’s financial advice for underserved and marginalized communities.
“AI can expand access to financial literacy tools for underserved or underbanked communities by meeting people where they are – technologically, emotionally, and financially–which is something that these populations aren’t often offered,” she said. “These communities often face systemic barriers such as geographic isolation, lack of access to traditional banking institutions, low income, unstable employment, or mistrust of financial systems due to past discrimination or predatory practices.”
The red flags
While AI can serve as a fast way to get financial advice you may not otherwise be able to afford or come up with on your own, it definitely has its drawbacks.
Vance raised a red flag over AI’s ability to provide a complete and nuanced financial plan.
“It is only as reliable as the prompts provided, and it often prioritizes direct responses instead of asking follow-up discovery questions that might be necessary to make a recommendation,” he said. “I think we can all become more informed decision makers with AI, but I wouldn’t let it replace your entire critical thinking and verification process.”
Laine said his main concern is that AI doesn’t know all the details that influence your financial life, and there isn’t much accountability for the advice it gives.
“AI lacks context and accountability. It doesn’t know your family situation, your career trajectory, or the nuances that determine whether a financial strategy actually works for your life,” he said. “It also can’t be held responsible if the advice is wrong.”
Perhaps more dangerous is consumers becoming too dependent on AI, he said.
“The bigger risk is over-reliance,” he said. “Financial advice from AI should be treated like any other data source: useful input, but not gospel. The best approach is using AI to surface options and analysis, then applying human judgment to make the final call—ideally with a real advisor who understands your full picture.”
That over-reliance is something that Iliya Rybchin, principal at AI consulting firm Vorpal Hedge, is concerned about, too. He said dependence on AI for all decisions is a trap.
“Without cross-checking against real-world changes (e.g., regulatory shifts), you risk outdated advice,” he told The Independent in an email. “Privacy concerns arise if you’re feeding sensitive data into unvetted platforms, but again, that’s avoidable with reputable tools and basic safeguards. Edge cases, like emotional support during market crashes, fall short since AI lacks empathy.”
Should you use AI as your financial advisor?
No, Laine said. While AI has many benefits for financial education and decision-making, it’s not a comprehensive solution. It will likely lack the context it needs to make the best decision for your particular situation.
“AI should be a tool in your financial decision-making process, not your sole advisor,” he said. “The advantage of AI is speed and pattern recognition—it can surface insights from massive datasets faster than any human. But financial decisions aren’t just about data; they’re about context, risk tolerance, and goals that algorithms don’t fully understand.”
Rybchin, however, disagrees. He believes that AI can be your financial advisor in the new year.
“AI should be a go-to financial advisor for most consumers in 2026,” he said. “AI is not a replacement for humans or a total solution, but is an exceptional starting point for everyone.”
He pointed out that AI is very good at following rules, so if your investing goals, in particular, follow the typical roadmap of low fees, diversification, rebalancing, and keeping calm as the market changes, AI can be a great fit.
“For most consumers, the baseline investing playbook is not complicated: keep fees low, diversify, stay disciplined, rebalance, and don’t panic-sell. AI is excellent at enforcing simple rules consistently,” he said.
As for AI’s take on whether it should be your financial advisor, here’s what ChatGPT’s free version had to say when we asked it if AI should be your financial advisor in 2026: “Short answer: not by itself – yet. Long answer: AI can be a great co-pilot in 2026, but a risky captain.”