Can AI Help With Your Finances?
ChatGPT and other artificial-intelligence tools will streamline certain tasks, but don't count on them to get everything right.


Like it or not, artificial intelligence is becoming increasingly embedded in our daily lives — including how we manage our money.
From budgeting apps that offer personalized tips for reducing expenses to bank chatbots that deliver account details 24/7, a growing number of companies are incorporating AI into their financial tools and services. At the same time, many people are using conversational chatbot platforms, such as ChatGPT and Claude, for guidance on everything from rolling over a 401(k) to maximizing the benefits of a health savings account.
When used with care, AI can help us make better financial decisions. But it can also provide misleading and false information, as well as empower criminals to create sophisticated scams.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
And right now, AI remains largely unregulated. A recent Pew Research Center survey found that 55% of U.S. adults and 57% of AI experts want more control over how AI is used in their lives.
So it pays to be vigilant to protect yourself while using AI — especially when you're using generative AI platforms such as ChatGPT and Claude that are powered by large language models. (LLMs, which are "trained" on data from a wide range of sources — such as website content, news articles and academic papers — can understand context and respond in a relevant, human-like manner.)
"New legislation will ultimately have to be introduced to protect consumers as we interact with these LLMs," says Andrew Lo, a professor of finance and the director of the laboratory for financial engineering at the MIT Sloan School of Management. "But until that day comes, I would encourage people to be very careful."
Here’s how to protect yourself, as well as ways to capitalize on AI.
Question AI's confidence
These tools often sound authoritative, even when they're wrong. Double-check answers from company chatbots and chatbot platforms.
Be especially careful with those that have a disclaimer stating they're in an early stage or testing phase. For critical or complex financial questions, ask the chatbot to connect you with a human, or call the customer service line and hit the prompts to speak with a live representative.
Be mindful that platforms such as ChatGPT, Claude and Perplexity can provide incorrect, misleading or fabricated information, in what's known as "hallucinating." They may also give you outdated material.
In short, don't rely on AI as a singular source of truth. "Use it to help make life easier, but not for vital or sensitive decisions," says Emma Foulkes, a certified financial planner and partner at Collective Wealth Partners in Atlanta.
Don't share sensitive information on LLM platforms
Never provide personal details such as your full name, address, account numbers or Social Security number on a platform such as ChatGPT.
"The moment that you start putting in sensitive information and getting value out of it, you're going to be tempted to give it more information," says Lo, adding that "once you give it that data, you are not getting it back."
Before you share anything, he says, ask yourself: Would I be comfortable if this appeared on the front page of the New York Times? And would I be okay with someone taking the information submitted, claiming it as their own and using it however they want?
Use AI as a creative brainstorming partner
A conversation with any number of AI tools and platforms can give you helpful advice on financial goal-setting, job-interview questions, budgeting and more.
For instance, you can provide general details about your life and then ask for ideas on how to reduce monthly expenses. Or you can go even deeper, asking it to produce recipes for 20 low-sodium dinners you can make at home that take less than half an hour to prepare and use less than $20 worth of ingredients. Within seconds, you’ll have a complete meal plan.
Tap into it as a junior research assistant
AI can assist you in gathering information — helping you compare credit card reward programs, say — and it can even put the data into a format that's easy to plug into a spreadsheet.
But it's not a substitute for expert advice, so remember to fact-check its responses. When using an LLM, ask it to provide sources so you can verify the information. (Keep in mind that LLMs can also generate links that don't work and cite fictionalized sources.)
Foulkes occasionally uses Perplexity, which acts like a supercharged search engine, for preliminary research — and she puts an emphasis on preliminary. Sometimes, Perplexity provides her with the sources she needs. Other times, it gives her random, unhelpful links.
Experiment with AI in low-risk ways
When it comes to high-stakes areas such as investing and financial planning, it's often better to rely on dedicated apps and websites from trusted providers, such as well-established banks and credible software companies. If you use general-purpose AI tools, they may not take important details, such as inflation, tax planning and health care costs, into consideration.
However, it can be helpful to explore what's out there in low-stakes situations to get an understanding of AI's limits and capabilities and stay on top of how AI is evolving. The bottom line is to proceed with caution and keep qualified humans in your financial life.
"AI is a brilliant product, but it can't deal with nuances," says Foulkes. "It doesn't have the expertise of a CPA, an estate-planning attorney or a financial planner."
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Learn more about AI
- What Is AI? Artificial Intelligence 101
- Ways to Use AI to Improve Your Financial Life
- How to Protect Your Privacy While Using AI
- What Are AI Agents and What Can They Do for You?
- How AI Can Be Used in Investing
- 10 Major AI Companies You Should Know
- Have a Retirement Question? AI Can Answer That
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Kiplinger contributor Laura Petrecca is a business journalist who has worked at major media organizations such as Gannett, News Corp, and Crain Communications. Prior to launching her own writing business, she held leadership roles such as USA Today’s New York City bureau chief, special projects editor, and business section editor.
In addition to Kiplinger, her writing has appeared in USA Today, Real Simple, Men’s Health, Prevention, Crain’s New York Business, Advertising Age, and AARP Bulletin. Laura also hosts livestream videos and has offered commentary on TV programs such as the Today show, Good Morning America, Inside Edition, Access Hollywood, and CNN.
She earned a master’s degree in journalism and a certificate in economics and business journalism from Columbia University and a bachelor's degree in journalism from the University of Maryland.
-
The Retirement Bucket Rule: Your Guide to Fear-Free Spending
Forget market declines or rising inflation. With this strategy, you won’t have to worry about any of that during retirement.
-
How Big Will the Fed Rate Cut Be This Fall?
A dismal July jobs report has lifted expectations for fall rate cuts. But just how low could the fed funds rate be by year's end?
-
The Retirement Bucket Rule: Your Guide to Fear-Free Spending
Forget market declines or rising inflation. With this strategy, you won’t have to worry about any of that during retirement.
-
Five Ways to Maintain Charitable Giving During Volatile Times: A Giver's Guide
When the economic outlook is uncertain, charitable giving is even more important — and impactful. You can be strategic by using donor-advised funds, diversifying assets and prioritizing unrestricted gifts.
-
Plan for Higher Health Care Costs in 2026: Projected Medicare Part B and Part D Premiums
In 2026, Medicare participants will pay more for their health care. Part B costs are expected to rise more than 10%. Here's what you can do.
-
The Weak Dollar is Making a European Vacation Harder to Afford in Retirement
Travel pros explain how you can afford a European vacation in retirement, despite a weak dollar.
-
Cash Balance Pension Plans: the Smart Way to Turbocharge Your Retirement
Cash balance plans can significantly boost your retirement strategy if you want a reliable, guaranteed income stream.
-
Avoid Medicare's 'Shadow Tax' With This Financial Expert's IRMAA-Busting Tips
You're cruising along in retirement, and then bam: Your Medicare premiums soar because your income crossed the limit. Take a breath. There could be a solution.
-
Grilling Season and ETFs: There's More Than One Way to Cook Up a Portfolio
Exchange-traded funds come in a multitude of 'flavors' these days, from passive to active to factor-based. Their flexibility is what makes them so delicious.
-
You Don't Want It, But You Should Plan for It Anyway: An Expert Guide to Long-Term Care
Planning for long-term care is crucial to protect your independence, family and financial stability against unexpected health events and rising care costs not covered by standard insurance.