Using AI for Financial Advice: What It Can (and Can’t) Do

5 Min. Read

A recent report released from the MIT Sloan School of Management reveals that more than 50% of adults in the U.S. have asked AI for financial advice. When you consider how widespread the use of AI has become, that number probably isn’t surprising.

Rather than asking whether you should use AI for financial advice, the more important question is how to use it appropriately. Where personal finance is concerned, AI does have its limits. But with the right approach, it can also help you become more informed and confident.

If you’re thinking about consulting AI to help you navigate your financial journey, we can help you understand where it can help, when to use caution, and when it’s best to seek guidance from a professional (human) financial counselor.

Where AI Excels—And When to Use Caution

AI tools like ChatGPT, Claude, and Gemini can be useful for so many things. From drafting emails to planning a vacation, many of us rely on this type of technology day-to-day. But as helpful as it can be, it’s also important to understand where AI excels and when to use caution.

When it comes to financial management, AI can help with things like:

• Learning financial basics. AI is like an encyclopedia you can chat with. It can help you understand basic concepts—like how a mortgage works—in easy-to-understand terms.

• Budgeting and organization. AI is great at sorting and organizing information, creating templates, and simplifying processes to make money management easier.
• Brainstorming ways to save or earn. AI can help you generate ideas to cut expenses, explore side hustles, or create a list of options to explore with a financial counselor.
• Compare financial options. AI is a great research assistant. It can help you assess the pros and cons of decisions like buying or leasing a car or choosing a credit card.

AI can help in many ways, but it also has its limitations. Most importantly, it doesn’t understand your complete financial picture.

When you ask a question like, “How much should I save each month?” an AI model can give you a number, but it doesn’t have enough information to make a trustworthy, personalized recommendation. It lacks a clear view of your goals and priorities, your risk tolerance, and your unique circumstances.

As outlined in the table below, it’s best to rely on a blended approach that leans into AI for research and education and trusts a human for advice and decision-making.

Five Tips for Using AI Wisely

When used wisely, AI can be a great resource for financial education. The technology can help you explore wide-ranging topics, decode jargon, and break down complex concepts—but it’s not a financial decision-maker.

These five tips can help you use AI with more confidence and the right dose of caution.

1. Use AI to learn—not to make final decisions.

AI is helpful for researching, learning, planning, and organizing. But when it comes to financial decision-making, it’s best to consult an expert.

Creating spending and savings plans, assessing credit-building scenarios, and crafting debt payoff strategies depend on details specific to you that AI typically can’t account for. Before making a final decision, talk it over with someone who’s equipped to evaluate your full financial picture.

Wondering whether financial coaching could help you reach your goals? Learn more about When to Meet with a Financial Counselor

2. Give AI enough information and context.

People who consult AI for financial advice sometimes ask a vague question and expect a fully personalized financial plan. But the quality of the answers you receive depends on the quality and completeness of the information you provide.

The MIT researchers found that more detailed prompts led to more helpful answers. But it’s important to remember that even with more context, a financial counselor is better equipped to offer guidance. Where a tool makes assumptions, a human considers your unique circumstances.

An important reminder: When using AI, never share information like account numbers, passwords, Social Security numbers, or other sensitive personal information.

3. Ask AI to explain its reasoning.

You might discover that AI outputs are inconsistent, and sometimes just changing the order of sentences will send a model down a different path. That’s because different AI models are built differently, use different training data, and are updated continually.

If you run the same question through two different tools and get two different answers, don’t just pick the one you like best. AI doesn’t always explain its reasoning or reveal the assumptions it’s making, so it’s best to ask how it arrived at its conclusion.

4. Verify important information.

Many AI tools offer the disclaimer that they can make mistakes and urge you to check important information. As tempting as it may be to skip this step, it’s smart to cross-reference any answers AI provides.

Before taking a response at face value—and especially before making an important financial decision—consult reputable financial websites or experts from your own financial institution. Marine Credit Union offers members free financial education and tools through our partnership with GreenPath Financial Wellness.

5. Bring what you’ve learned to a professional.

AI can help you build understanding, and a trusted professional can help you put that knowledge to use.

Before meeting with a financial counselor, ask AI to help you prepare by sorting information, organizing your goals, and brainstorming a list of questions to discuss. When you sit down with the counselor, you’ll feel better prepared to have a productive conversation.

When to Meet with a Financial Counselor

AI is a powerful tool that can explain terms and concepts, point you toward resources, and help you get organized. The more informed you become, the more confident you’ll feel taking steps forward on your financial journey.

When the time comes to make important financial decisions, meeting with a financial counselor can help you maximize the knowledge, tools, and resources you’ve gained. A certified financial counselor will take the time to:

• Look at and understand your complete financial picture
• Consider your unique goals, risk tolerance, and circumstances
• Offer rationale for the recommendations they make
• Build a strategy that’s tailored specifically to you

Feeling nervous about your first meeting? Learn What to Expect When You Meet with a Financial Counselor

Marine Credit Union: Personalized Guidance You Can Trust

AI can be a great tool for learning key terms and concepts, organizing information, and brainstorming questions. But when it comes to making decisions with real financial consequences, the smartest move is to consult a trusted financial counselor.

At Marine Credit Union, we understand that everyone’s situation is unique, and there’s no single definition of success. Our Certified Financial Counselors take the time to understand your goals and offer personalized guidance.

Whether you’re opening your first checking account, exploring a loan, or looking for advice on savings, we’re here to help. Find a Marine Credit Union Financial Empowerment Center near you.

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