More than one in five adults have used AI to research money matters
Artificial intelligence has emerged as the go-to “agony aunt” for millions of Brits, with over one in five adults turning to it for financial guidance. However, specialists are cautioning that relying on ChatGPT to manage your finances could cost you thousands of pounds.
Whilst innovative technology can deliver genuine advantages, the risks of treating a chatbot as your personal financial adviser are escalating. This week, Garfield AI – a legal service operated by professionals and sanctioned by the Solicitors Regulation Authority – reclaimed £7,000 of debt for one client for merely £7.50. Consumer organisations celebrated it as a victory because it functions under identical regulations as a law firm.
Yet experts warn that standard ChatGPT, the general-purpose AI platform, is entirely different. Rather than boosting your wealth, they argue it could burden you with devastating tax liabilities, poor mortgage selections or catastrophic pension choices.
Colette Mason, founder of London-based Clever Clogs AI, said the peril stems from presuming that success stories such as Garfield’s indicate general chatbots can be entrusted with life savings.
She told Newspage: “Financial advice is a context problem, not a maths problem. Untrained AI doesn’t know you have a mortgage, debts, investments, or a low-risk tolerance. Its over-confidence creates a catastrophic psychological trap for novice users.”
She further highlighted that Andrew Lo from MIT has stated that a fully reliable decision-making AI is still “five years away”, saying: “Until an AI assumes full fiduciary duty, it remains a smart toy, not a trustworthy advisor.”
Tony Redondo, from Cornwall-based Cosmos Currency Exchange, acknowledged the usefulness of AI for “heavy lifting” tasks such as learning jargon, drafting letters or building a budget.
However, he said: “The danger emerges when clients use AI for specialist advice on irreversible, highly personalised matters like tax, mortgages, pensions, or insurance – where AI hallucinations could have serious consequences.”
Others caution that the risks extend beyond financial matters. Mitali Deypurkaystha, a business leader based in Newcastle, said: “ChatGPT has dazzling intelligence, but no wisdom.
“Used properly it can help with interviews and presentations. But start treating it as a therapist or confidant and communication skills diminish, isolation creeps in. We’ve already seen reports of psychosis, people falling in love with chatbots, and even a tragic suicide.”
Mo Saleh, CEO of Quantum Placements, suggested that tools like ChatGPT can be time-saving when summarising financial documents or drafting creditor letters.
Yet, he warned: “Risky uses include relying on AI to calculate tax liabilities, restructure debts, or recommend financial products. Outputs can sound convincing but still be wrong, incomplete, or outdated. The risk becomes real when people move from using AI as a support tool to treating it as a substitute for regulated advice.”