Half of UK adults have sought out AI financial advice (Picture: Getty Images)
Whether it’s customer service chatbots or summarised search results, AI is creeping into every part of our online lives.
And while some people have misgivings about its reliability, this week’s Money Problem reader, Ben, from Hull, trusts it for everything from mental health advice to cooking tips.
One of the only things the 24-year-old hasn’t consulted ChatGPT on is money – but he’s struggling to budget on his own.
Before he seeks out technical support, Ben wrote to Metro consumer champion, Sarah Davidson, for her input on AI financial advice.
The problem…
I’m an avid user of AI tools and love ChatGPT, Claude and all the others. At the moment, I use them to help with things like writing emails, finding new recipes and medical advice. I’ve even started talking through stuff I’m worried about with an AI therapist.
I’m not good with money – I usually get to halfway through the month and I’m back in my overdraft until my next pay cheque arrives.
I’m wondering about using AI to help me manage my money but it feels maybe slightly risky? Should I do it and where would I start?
The answer…
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The use of AI tools such as ChatGPT, Copilot, Gemini and Claude has exploded over the past year or two.
Given how useful these tools can be to many people – acting as virtual assistants, planning travel itineraries and, as you say, even providing therapy – it’s not a big leap to consider how they can help with financial affairs.
In fact, according to Lloyds Banking Group, more than half of UK adults have already used it for this purpose. Even so, like in your case, there is something of a trust issue.
The Lloyds study also found that 83% of AI users say they worry about data privacy, while 80% are concerned about receiving inaccurate or outdated information, and seven in 10 are worried about a lack or personalisation.
There are situations where AI can be useful (Picture: Getty Images)
We (should) all know that generative AI scrapes online content and uses it to create new content. That presents a real danger, since there’s no guarantee that it has scraped information that is true.
And when it comes to financial decisions, it’s vital you base your choices on guidance you can trust.
The other thing to say here is that some areas of money management need very little technical know-how, while others are better handled with the aid of a qualified, independent financial adviser.
It sounds like you need some budgeting tips so you aren’t spending more than you earn each month, as well as a sensible savings plan to help you get out of the overdraft for good. AI is definitely going to be helpful for you on both of these fronts.
However, I’d counsel you to broaden out your research to ensure what AI is suggesting tallies with what educated experts are saying.
Cross-check any specific information with an independent source, such as personal finance news sites, the government-backed MoneyHelper site and companies or apps such as Plum, Finder or Emma.
You could also take some tips from respected influencers on social media – though be extremely careful about who you follow. Do your homework and don’t be pressured into making hasty decisions, as not all financial influencers are legitimate.
For decisions such as where to invest any savings you might build up, be mindful that what is right for you won’t be right for others. Think about what you’re investing for, over how long and how much risk you can afford to take as a result.
Platforms such as ii, Bestinvest and AJ Bell have excellent information online and can be trusted to help you get your head around this if you want to do it yourself.
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While this may be sometime in your future, those who have larger savings pots often take advice from an independent financial adviser who help you to build a personal plan in line with your financial goals.
Buying a home is another huge financial commitment and one which almost 90% of people undertake with the help of a fully qualified and regulated mortgage broker.
The advantage of this is that you’re getting advice tailored specifically for you based on your earnings, spending and any other financial interests you may have.
And although some charge borrowers a fee and earn a commission from the mortgage lender, others offer ‘free’ advice and rely solely on that commission.
Final word of warning – do not put detailed information about your personal finances into any AI tools if you don’t have a subscription that protects your data from becoming public. That way lies financial ruin.
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Get in touch by emailing MetroLifestyleTeam@Metro.co.uk.
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