ORLANDO, Fla. – Artificial intelligence is changing not just how we work, but also how we manage our finances.
A new survey by Empower reveals that nearly half of Americans—47%—feel more comfortable using AI for financial decisions than they did a year ago. Yet, the question remains: can you trust a chatbot with your savings, retirement, or future?
Tools like Chat GPT, Gemini, and Microsoft Copilot claim they can answer various questions, including those related to finances. More Americans are seeking AI assistance for issues ranging from retirement savings to debt repayment.
“They’re able to track and categorize things much better than they ever used to,” said Joel, President & CEO of Nelson Financial Planning.
A recent study shows that 6% of baby boomers, 18% of Generation X, and at least 30% of millennials and Generation Z have utilized AI for money management. Retirement planning is a significant focus, with nearly half of users inquiring about the amount needed for retirement.
AI often suggests the “4% rule,” indicating that individuals can safely withdraw 4% of their savings in their first year of retirement, adjusting annually for inflation. However, experts caution that this guideline is outdated and emphasizes that there is no one-size-fits-all solution.
Garris noted that one of the biggest issues online is the spoofing of websites. Security is also a rising concern; studies indicate that almost 4.5% of AI prompts may include sensitive personal or employer data, which could be copied, stored, or shared without users’ knowledge.
“Once AI has that information, chances are everybody’s going to have that information,” Garris explained.
Therefore, it is advisable to think critically before entrusting a chatbot with your finances and to consult with a real human about your financial future.
A test showed that AI finance tools may overlook essential details, such as payment history or realistic timelines, which can lead to risky decisions. While AI can serve as a useful starting point, it should not replace professional advice. It is best to use these tools as guides rather than as definitive sources and always verify the figures before allowing AI to influence your financial decisions.
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