Increasingly, many people are turning to AI for answers when they have a question or could use some guidance. Given that finances are a major area where both questions and a need for advice can arise, it’s no surprise that artificial intelligence is being faced with human financial queries.<\/p>\n
A poll<\/a> published by the credit bureau Experian in late 2024 found that already, 67% of Gen Zers and 62% of millennials are using AI to help with financial management in areas like saving and budgeting, investment planning and credit score improvement<\/a>. Many people report having a positive experience, but there are still some caveats to keep in mind \u2014 and action steps you can take \u2014 in order to ensure you will have a profitable exchange with AI too.<\/p>\n How can AI help you in your financial life?<\/p>\n AI is generally most reliable when you’re looking for some straightforward number crunching or simple answers. For example, this may include asking AI to do tasks like “create a budget<\/a> that helps you save a particular amount of cash” based on details you provide about your typical monthly bills, said CNBC<\/a>, citing Christina Roman, a consumer education and advocacy manager at Experian. You might also tap AI to break down a complex financial topic or analyze financial statements or spreadsheets.<\/p>\n Subscribe to The Week<\/p>\n Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.<\/p>\n <\/p>\n \nSUBSCRIBE & SAVE\n<\/p>\n <\/a><\/p>\n Sign up for The Week’s Free Newsletters<\/p>\n From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.<\/p>\n From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.<\/p>\n Where AI can “fall short” is “when it comes to more complicated areas like investment advice and tax optimization,” said CNBC. While you could still use AI as a “starting point” on these topics, you might want to work through the specifics elsewhere, such as with a financial professional<\/a>.<\/p>\n Are there risks to using AI for financial advice?<\/p>\n A major risk of using AI is that most platforms will “collect various data from you,” said Kiplinger<\/a>. Because of this, “sharing too much information with AI can be problematic,” as “there are no guarantees your information will be safe.”<\/p>\n Another problem: AI is not always right. “Experts warn that large language models (LLMs) are still prone to misinterpreting numerical data, especially in contexts rich with figures,” said Investopedia<\/a>. When it comes to “incorrect budget projections or investment performance,” that “could result in actual losses.”<\/p>\n