Should You Replace Your Financial Adviser with AI?

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Artificial intelligence (AI) evangelists will tell you AI can do anything: Jumpstart a work brainstorm, create a weekly meal plan, write your emails, even pick out your clothes.

There is truth to that: ChatGPT, Co-Pilot and other similar AI programs can assist you with all kinds of tasks and make both your professional and personal life easier. But there are some things you shouldn't jump to AI for just yet — especially when it comes to handling your finances and securing a comfortable retirement.

Yes, it can be tempting to imagine ditching your human financial adviser for an AI app. But there are key advantages to sticking with your financial adviser. Here's what to know.

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What are the benefits of using AI as a financial adviser?

Anecdotally, many people have told me they've turned to ChatGPT to help them out with their finances, whether it's balancing their budget, picking their next investment or even mapping out long-term money decisions to meet their retirement goals.

It makes sense: AI is (currently) free, and a financial adviser is (often) not. Plus, ChatGPT isn't shackled to a set work schedule — if you have a question keeping you up at night, it's right there to give you the answer, even if it's 4 a.m.

It's also attractive to many people that ChatGPT isn't, well, human. People want to operate with cold logic when it comes to their money and not make decisions based on fear or emotion. They think ChatGPT's robotic nature will divorce that element from its advice.

That may also be why it feels easier to confide in AI: Because it isn't human, you don't feel judged for asking any question or for admitting a bad financial habit.

Why should I stick with my financial adviser over AI?

Tempting as those arguments may be, it's not a sound monetary decision to replace your human financial adviser with a bot. Ultimately, human financial advisers are going to give you much better advice and guide you into making the smartest decisions possible with your money.

Just consider how AI struggles with true personalization, says Kris Venezia, CRPC, president of investments at Eckman Wealth Management.

"Every person's financial situation is unique, and their financial needs are going to be specific to that individual. Artificial intelligence and robo-advisers struggle to provide that personalized financial plan. They tend to generalize, which may not be the best advice for a person," he explained.

Plus, the reality is that circumstances around the world are always changing. That means what you should be doing with your money is always changing – but because AI is trained on past data, it may be giving you advice that's now out of date and potentially even harmful.

An adviser and client talk in an office.

"This year alone, there's been a massive law passed [the 'big, beautiful' act], which has changed numerous rules that relate to financial planning. Or, you could look at how the COVID pandemic sank stocks in early 2020, and robo-advisers did a poor job of handling the downturn and subsequent recovery because they had no training for that situation," he said. "Artificial intelligence does not adapt to changing financial rules as fast as humans."

And while some may believe an AI bot's lack of emotion makes it more infallible than a human adviser, Venezia argued against that concept, noting that bots tend to tell people what they want to hear.

"If a person is practicing bad financial habits, they need an adviser who is willing to have that tough conversation to get them back on track," he said.

Plus, sometimes inputting emotion actually is a good idea when it comes to financial planning.

"Artificial intelligence does not understand the non-monetary component of financial decisions. A trip with the family to Disneyland provides memories and personal enrichment that is impossible to quantify with dollars. A good adviser works with the client to ensure they are hitting their financial goals and also using money in ways that enriches their lives," Venezia said.

Why you should stay with human advisers

While AI can be a good starting point for your money-related questions, it's not an optimal choice for long-term financial planning.

The information can be outdated or just plain wrong; it's not able to truly personalize for your situation; it can't react well to sudden change; and it may not give you the tough love — or emotional support! — you need with your financial decisions.

Think of it this way: Sure, when you're not feeling well, you sometimes Google your symptoms to get a sense of what's going on with you. But that doesn't mean you don't go to the doctor when you really need help.

Your finances are important. It's ultimately not wise to skip out on the humans who are trained to help them thrive.

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Becca van Sambeck is a writer and editor with experience in many fields, including travel, entertainment, business, education, and lifestyle. Her work has appeared in outlets like NBC, Oxygen, Bravo, the University of Southern California, Elite Daily, CafeMom, Travel For Teens, and more. She currently resides in New York City.