Nearly 1 in 5 People Who Took Financial Advice From AI Lost at Least $100 Doing So, Survey Finds

Some investors are turning to ChatGPT and other AI chatbots to help them manage their finances, rather than sitting down with a certified financial planner (CFP). But is that a good idea?

A new survey from Pearl.com, an AI firm, suggests it might not be. According to the survey, 19% of Americans have lost more than $100 by following financial advice generated by an AI chatbot. That number jumps to 27% for Gen Z investors. 

“Overall, we see a growing dependence on AI financial planning, especially as recession fears grow,” said Moira Corcoran, a certified public accountant (CPA) and a finance expert on Pearl.com’s AI platform.

Pearl.com’s survey found that 30% of Gen Z investors have followed an AI’s stock tips, and more than a quarter of Gen Z investors have used it for advice on trading cryptocurrencies. 

“Many will ask AI about the top ways to save money or top investments to get rich quick, and then follow the first piece of advice it spits out,” Corcoran said.

Jared Gagne, a CPFA at Claro Advisors, said AI can be a useful tool for investors who want to educate themselves about financial planning. However, he said, applying its advice blindly can cost you. 

“AI can give decent general advice that turns into very bad advice when applied to the wrong situation,” Gagne said. “Imagine someone with stock options reading generic AI guidance about exercising them early. On paper, that can sound like a smart move. But without understanding their income, tax bracket, or [alternative minimum tax] exposure, they could trigger a six-figure tax bill they had not prepared for.”

AI can also provide inaccurate or outdated information, such as when a law changes. Take, for example, the passage of the “Big, Beautiful Bill” that was signed in July: it increased major tax deductions but ended certain tax credits.

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It’s worth acknowledging that many AI chatbots are free, while financial planning services typically aren’t. However, keep in mind that you don’t have to shell out for an expensive portfolio manager to get financial advice from a human. A little guidance can make a big difference, Corcoran said. 

“If you’re trying to cut corners and save a few bucks, spending the money on a real financial advisor is always worth it,” Corcoran said. “The amount you could lose from following bad AI advice is so much more than the cost of an hour session with a financial planner.”

The Bottom Line

Asking AI for investment help can end poorly when a chatbot provides inaccurate information or misses key context about your financial situation. Chatbots can hallucinate data or cite sources that don’t reflect the latest policy changes.

Though AI can be a tool to support your knowledge of personal finance, it can’t replace the skill and nuance that a professional brings. At least not yet.