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Seeking comment: AI-generated financial advice

Journalist: Aaliyah Ahmed, The Times

ended 21. September 2026

I’m looking for financial advisers and personal finance experts to comment on new research testing the accuracy of AI-generated financial advice.

The study found AI models gave accurate answers just 43% of the time, falling to 12% for complex questions.

I’d like experts to comment on the risks for consumers using tools such as ChatGPT for decisions about pensions, tax, mortgages, savings and debt, and whether the research provides a fair reflection of AI’s capabilities.

10 responses from the Newspage community

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The findings ring true. The danger with these tools is that they sound most confident exactly where they're most likely to be wrong, and a consumer has no way to tell a good answer from a fluent, authoritative one that happens to be incorrect. That 12% on complex questions is the alarming part, because in personal finance almost everything becomes complex once it's about your own situation. Pensions, tax and mortgages all turn on individual circumstances the model doesn't know and won't think to ask about. A mortgage answer that's perfect for one person is actively wrong for the next. I use AI heavily in our own business, so I'm no sceptic. We have the expertise to catch it when it's confidently wrong; a consumer using it as their adviser does not. So I wouldn't read this as never use AI. Use it to understand the basics and ask sharper questions, then take the decision that's actually yours to a human. It's a brilliant starting point and a dangerous place to finish.
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The 43% is the good news in this study. Nobody asks AI the easy questions. They ask the long-form ones about tax, pensions and their own situation, and that's where it was right just 12% of the time. What makes it so dangerous is that it answers wrong with exactly the same confidence as it answers right, and I've had clients arrive certain of something ChatGPT told them that was flatly wrong. Is the research fair? Mostly yes. AI is fine for learning what a question means. When it gets your money wrong, there's no complaint to make and nobody accountable, and that's what regulated advice is for.
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Anything involving data processing is ruled by GIGO, garbage in, garbage out. AI learns from the internet, so it produces garbage faster. In FX, the risk is magnified by real-time rate volatility, shifting interest rate parities and multi-jurisdictional tax rules. Generic AI models lack live market feeds and stumble over cross-border regulation, a recipe for spot-forward spread errors and tax penalties. Across personal finance, the study's poor accuracy reflects a basic flaw: probabilistic language models are the wrong tool for precise planning. In pensions and tax, AI conflates regional rules and misses personal nuance leading to irreversible fines and flawed retirement strategies. On mortgages and debt, it explains the basics but can't judge lender underwriting or distressed debt. The danger is the "confidence gap", outdated or hallucinated advice delivered with the same authority as the right answer. AI is a research tool but no substitute for an experienced qualified adviser.
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AI can be a useful starting point for explaining mortgage jargon or helping someone understand the questions they should be asking, but it is not a substitute for regulated advice. Mortgages are very case-specific: income structure, credit history, deposit, property type and individual lender criteria can all change the answer. The danger is that AI often sounds confident even when it is wrong or working from outdated information. I would use it to become better informed, but for a decision that could affect your finances for decades, verify everything with a qualified adviser.
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I'm not surprised that AI makes errors, but being wrong over half the time (57%) is very concerning. This is compounded by its conviction and confidence. When it comes across as this confident, it's easy for experts using AI to question their own knowledge. So, for the average consumer, they have little chance of assessing the validity of any AI generated financial advice. The rising use of AI as supposedly an alternative to professional advice is almost certainly going to create issues for users down the line. And when things go wrong, users would have any recourse or compensation, other than a simply 'Sorry, I was incorrect' response from their AI agent.
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It’s extremely concerning how much misleading advice AI chatbots are giving, affecting millions of people who use them for quick help.

The biggest danger is that AI can produce a wrong answer that sounds confident and authoritative. Regulations around topics such as taxes, mortgages, or pensions change regularly, so simple searches can return outdated information. These small errors could cost someone thousands of pounds.

Utilising AI for initial insight can be useful for gaining an understanding of a financial concept, but consumers need to be cautious and should never treat AI-generated answers as financial advice. Answers to a major, specific personal matter are where you are most likely to be led astray, as it doesn’t take into account an individual's circumstances, which is where professionals are much more reliable.

Don’t substitute it for regulated financial advice, as wrong decisions financially will have a significant impact on your life, and AI won’t be held accountable.
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AI can be an extremely useful financial education tool. It can explain terminology, help people understand their options and, importantly, work out what questions they should be asking. I certainly wouldn't tell consumers not to use it.
The risk comes when general information is mistaken for personalised financial advice. Decisions around pensions, tax, investments or mortgages can depend on factors the person asking the question may not even realise are relevant.
I would also want to understand how the study defined an 'accurate' answer before drawing conclusions from the figures. AI capabilities are developing rapidly, and answers can depend significantly on the model, prompt and information provided.
The future isn't AI versus advisers, but how they complement each other. Interestingly, I increasingly have clients finding me through AI tools themselves, often because AI has helped them recognise when they need professional advice.
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Financial advice is highly contextual, with often more than one reasonable answer. Navigating this complexity requires judgment: intelligence helps analyse the options, while wisdom helps weigh competing priorities and decide what matters most. This is where AI still falls short.

The risk for consumers using tools such as ChatGPT is that problems are framed too narrowly. The resulting response may be coherent and persuasive, but can give disproportionate weight to the factors captured in the prompt while leaving the wider decision-making context largely unexamined.
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I’ve played around with AI tools myself and have come to the conclusion, they are good at analysing data (summarise this document, pull out the relevant points etc), but when asking it technical financial planning questions it gets it wrong. It uses wrong tax year information and also tends to get part of the question right but not completely. I had a client come to me recently who had tried to use ChatGPT to help her with her pensions and got more confused the more she had tried to use it. The biggest issue is that finance is so subjective, two people could have the same amount of money but the advice I’d give them could be completely different based on their different views, values and goals. AI has a place to help advisers in the advice process but should not be used to formulate the advice.
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Sometimes I check just how accurate AI's advice really is.

One recent example was an inheritance tax scenario I put to AI involving a couple where one spouse was a long-term UK resident and the other was not — a fairly common situation for couples of mixed nationalities.

The advice it gave would have been perfectly reasonable for a UK-based couple who had both spent most of their lives living in the UK.

The problem was that it wasn't appropriate for the couple in my scenario.

Had this imaginary couple followed the AI's advice, they would have missed some important things they needed to be aware of and potentially put a plan in place that could have resulted in a significantly higher inheritance tax bill further down the line.