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Should you use ChatGPT for financial advice? "Wholly relying on it is dangerous"

ended 02. December 2025

CHATGPT was released three years ago this week – but should it be used for financial advice?

On November 30, 2022, OpenAI introduced ChatGPT to the world.

Just three years on, the system has 800 million users and answers 29,000 prompts a second.

Newspage spoke to AI and financial experts – who cautioned against using it for advice on your money.

Rohit Parmar-Mistry, Founder at Burton-on-Trent-based Pattrn Data, said: "The biggest lie in the current AI hype cycle is that intelligence is just data processing. It isn’t. Real financial advice requires context, empathy, and, crucially, accountability, three things ChatGPT completely lacks. I’ve spent a decade helping companies implement automation, and the golden rule is always the same: AI is a tool, not a replacement for judgment. 

"When you ask ChatGPT for financial advice, you are getting a generic aggregate of the internet’s wisdom, and its stupidity, masquerading as expertise. It doesn't know your family situation, it doesn't care if you retire poor, and it certainly won't be there to pick up the pieces when the market turns. 

“We are seeing a dangerous trend where people treat these chatbots as objective truth-tellers. They aren't. They are pattern matchers. If you want to use it to learn the difference between an ISA and a SIPP, go ahead. That’s financial literacy. But using it to plan your financial future? That’s just gambling with extra steps.

Colette Mason, Author & AI Consultant at London-based Clever Clogs AI, also cautioned against using it for money 

She added: "If you’re using AI for financial advice, treat it like asking a very clever stranger in the pub: useful for perspective, reckless for final decisions. AI can model scenarios, explain jargon can help you think, but it has zero accountability if it gets your pension, tax, or risk profile wrong. 

"Plus the tax man will take a dim view of your methods. The danger isn’t that ChatGPT is stupid; it’s that it sounds confident even when it’s guessing. The smarter move is this: use AI to sharpen your questions, gather options and understand the landscape, then let a regulated human advise you. A bot can draft a financial plan but it can’t implement the right financial outcome for you. 

“So the real question isn't ‘Should you use ChatGPT for financial advice?’, it's ‘Are you relying on it to replace professional judgement?’ If you are relying on it, that’s a no. If it’s helping you feel informed and brilliant before speaking to a bona fide money expert, that’s a yes.”

David Belle, Founder and Trader at Fink Money, said it could be seen as positive that the system is American.

He continued: "Yes. Since ChatGPT is American, us Brits could do well with some American knowledge on investing and markets with less of the traditional British view on finances. 

“It is arguably better than some of the advice that is spouted by various regulated financial advisers, not necessarily because of their lack of knowledge, but more because of regulatory capture.”

Michelle Lawson, Director at Fareham-based Lawson Financial, said you should still seek a professional opinion.

She added: "AI has its place but wholly relying on it for professional advice is dangerous in my opinion. It is vital that people use it for a guide and then seek professional advice and clarity around the content before acting. 

“Many years of study, knowledge and experience cannot be replaced by AI and it also misses the human empathy and sentiment.”

Rob Mansfield, Independent Financial Advisor at Tonbridge-based Rootes Wealth Management, said AI may not pick up all the rules.

He continued: "Yes and no. By all means use AI for research but don't rely on it. Many of us will have felt poorly, googled symptoms and concluded that we've got whatever comes up but when you go to the GP it's nothing more than the common cold. 

"AI is a supercharged version of that. It can help with a basic understanding but it only works if you question it and really think about it. Pension contributions are a great example. 

“It's generally a good idea to pay into a pension but there are rules around how much you can contribute, which aren't always picked up by an AI model and so you could accidently breach your allowances.”

Philly Ponniah, Chartered Wealth Manager and Financial Coach at Philly Financial, said AI is useful to learn but shouldn't be relied on.

She added: "ChatGPT can help you explore ideas and think through your own money habits, but that’s very different from giving proper financial advice. AI only works with what you put into it, so if your prompt misses key details, it will give you confident answers that can be completely off. 

“It also struggles with nuance and I’ve seen it misstate tax rules or oversimplify choices that hinge on small facts. Use it to learn and get clearer on the questions you want to solve. Just don’t rely on it to decide anything that affects your income, your pension or your family.”

Chris Barry, Director at London-based Thomas Legal, said many are using AI to find services and ask the right questions of them.

He continued: "AI seems to be proving very helpful when it comes to people finding the right law firm to support them. Pre-ChatGPT, I would rarely speak to a client who would ask lots of questions before instructing. 

"Now I am asked all the right questions, which I enjoy answering such as our qualifications, expertise, service levels and capacity. AI seems to be the driving force behind that. 

“It can make you ask questions that may not otherwise enter your mind and that's a powerful thing. Law firms need to market their strengths so AI can pick it up and push them into the mix as a strong option for a potential client.”

Rohit Kohli, Director at Romsey-based The Mortgage Stop, said even AI admits it should not be used for financial advice.

He added: "I asked ChatGPT this question. It said no. The exact response was: You shouldn’t rely on ChatGPT for regulated financial advice. It’s useful for general explanations, lender criteria, and helping you prepare questions, but it can’t assess your circumstances, recommend products or meet FCA requirements. 

“For anything that affects borrowing, protection, or long-term finances, you need a qualified, regulated adviser, and ChatGPT should only be used as a general information tool.”

Riz Malik, Director at Southend-on-Sea-based R3 Wealth, said AI may make incorrect statements.

He continued: "If AI gets it wrong, and it regularly does, are you prepared to risk your financial future or wellbeing? 

“By all means, AI can be a great place to start, but if you are making key financial decisions that could have an impact on you and your family, proceed with caution. What recourse do you have?”

Patricia McGirr, Founder at Burnley-based Repossession Rescue Network, said AI should be used to clarify, not to commit.

She added: “Using ChatGPT for financial advice is like asking a satnav to judge your driving. It’ll give you directions, but it won’t stop you crashing. AI can summarise, simplify and sometimes surprise you, but it cannot spot your stress levels, your spending habits or the skeletons in your credit file. 

"The real risk is mistaking slick sentences for sound strategy. ChatGPT can be confident, convincing and completely wrong, and consumers are the ones left picking up the pieces. Use it to clarify, not to commit. When it comes to your money, you need wisdom, not wizardry.”

Samuel Mather-Holgate, Managing Director & IFA at Swindon-based Mather and Murray Financial, said it's best to stick to professionals.

He continued: “Just like most topics, ChatGPT can give great opinions on financial advice. However so can Dave, down the pub. Also like Dave, ChatGPT can hallucinate. 

"The problem is you don’t want someone investing your money who is seeing things. With issues as important as health, wealth and law it’s probably best to stick to regulated professionals.”

Daniel Wiltshire, Actuary & IFA at Bradford-on-Avon-based Wiltshire Wealth, added: "Using ChatGPT for financial advice is the modern equivalent to asking a bloke down the pub. It's unqualified, unregulated and often unintelligible. It's free but could end up costing you a lot of money."
 

12 responses from the Newspage community

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Star Quote
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Rohit Parmar-Mistry
Founder at Pattrn Data
The biggest lie in the current AI hype cycle is that intelligence is just data processing. It isn’t. Real financial advice requires context, empathy, and, crucially, accountability, three things ChatGPT completely lacks.

I’ve spent a decade helping companies implement automation, and the golden rule is always the same: AI is a tool, not a replacement for judgment. When you ask ChatGPT for financial advice, you are getting a generic aggregate of the internet’s wisdom, and its stupidity, masquerading as expertise. It doesn't know your family situation, it doesn't care if you retire poor, and it certainly won't be there to pick up the pieces when the market turns.

We are seeing a dangerous trend where people treat these chatbots as objective truth-tellers. They aren't. They are pattern matchers. If you want to use it to learn the difference between an ISA and a SIPP, go ahead. That’s financial literacy. But using it to plan your financial future? That’s just gambling with extra steps.
Star Quote
Copy

Colette Mason
AI Ethics Consultant at Clever Clogs AI
If you’re using AI for financial advice, treat it like asking a very clever stranger in the pub: useful for perspective, reckless for final decisions. AI can model scenarios, explain jargon can help you think, but it has zero accountability if it gets your pension, tax, or risk profile wrong. Plus the tax man will take a dim view of your methods. The danger isn’t that ChatGPT is stupid; it’s that it sounds confident even when it’s guessing. The smarter move is this: use AI to sharpen your questions, gather options and understand the landscape, then let a regulated human advise you. A bot can draft a financial plan but it can’t implement the right financial outcome for you. So the real question isn't ‘Should you use ChatGPT for financial advice?’, it's ‘Are you relying on it to replace professional judgement?’ If you are relying on it, that’s a no. If it’s helping you feel informed and brilliant before speaking to a bona fide money expert, that’s a yes.
Copy

Editor
Michelle Lawson
Director at Lawson Financial
AI has its place but wholly relying on it for professional advice is dangerous in my opinion. It is vital that people use it for a guide and then seek professional advice and clarity around the content before acting. Many years of study, knowledge and experience cannot be replaced by AI and it also misses the human empathy and sentiment.
Copy

Editor
Rob Mansfield
Independent Financial Advisor at Rootes Wealth Management
Yes and no. By all means use AI for research but don't rely on it. Many of us will have felt poorly, googled symptoms and concluded that we've got whatever comes up but when you go to the GP it's nothing more than the common cold. AI is a supercharged version of that. It can help with a basic understanding but it only works if you question it and really think about it. Pension contributions are a great example. It's generally a good idea to pay into a pension but there are rules around how much you can contribute, which aren't always picked up by an AI model and so you could accidently breach your allowances.
Copy

Editor
Philly Ponniah
Chartered Wealth Manager and Financial Coach at Philly Financial
ChatGPT can help you explore ideas and think through your own money habits, but that’s very different from giving proper financial advice. AI only works with what you put into it, so if your prompt misses key details, it will give you confident answers that can be completely off. It also struggles with nuance and I’ve seen it misstate tax rules or oversimplify choices that hinge on small facts. Use it to learn and get clearer on the questions you want to solve. Just don’t rely on it to decide anything that affects your income, your pension or your family.
Copy

Editor
Chris Barry
Director at Thomas Legal
AI seems to be proving very helpful when it comes to people finding the right law firm to support them. Pre-ChatGP, I would rarely speak to a client who would ask lots of questions before instructing. Now I am asked all the right questions, which I enjoy answering such as our qualifications, expertise, service levels and capacity. AI seems to be the driving force behind that. It can make you ask questions that may not otherwise enter your mind and that's a powerful thing. Law firms need to market their strengths so AI can pick it up and push them into the mix as a strong option for a potential client.
Copy

Editor
Rohit Kohli
Director at The Mortgage Stop
I asked ChatGPT this question. It said no. The exact response was: You shouldn’t rely on ChatGPT for regulated financial advice. It’s useful for general explanations, lender criteria, and helping you prepare questions, but it can’t assess your circumstances, recommend products or meet FCA requirements. For anything that affects borrowing, protection, or long-term finances, you need a qualified, regulated adviser, and ChatGPT should only be used as a general information tool.
Copy

Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
If AI gets it wrong, and it regularly does, are you prepared to risk your financial future or wellbeing? By all means, AI can be a great place to start, but if you are making key financial decisions that could have an impact on you and your family, proceed with caution. What recourse do you have?
Copy

Editor
Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
Just like most topics, ChatGPT can give great opinions on financial advice. However so can Dave, down the pub. Also like Dave, ChatGPT can hallucinate. The problem is you don’t want someone investing your money who is seeing things. With issues as important as health, wealth and law it’s probably best to stick to regulated professionals.
Copy

Premium
David Belle
Founder and Trader at Fink Money
Yes. Since ChatGPT is American, us Brits could do well with some American knowledge on investing and markets with less of the traditional British view on finances. It is arguably better than some of the advice that is spouted by various regulated financial advisers, not necessarily because of their lack of knowledge, but more because of regulatory capture.
Copy

Premium
Daniel Wiltshire
Actuary & IFA at Wiltshire Wealth
Using ChatGPT for financial advice is the modern equivalent to asking a bloke down the pub. It's unqualified, unregulated and often unintelligible. It's free but could end up costing you a lot of money.
Copy

Patricia McGirr
Founder at Repossession Rescue Network
Using ChatGPT for financial advice is like asking a satnav to judge your driving. It’ll give you directions, but it won’t stop you crashing. AI can summarise, simplify and sometimes surprise you, but it cannot spot your stress levels, your spending habits or the skeletons in your credit file. The real risk is mistaking slick sentences for sound strategy. ChatGPT can be confident, convincing and completely wrong, and consumers are the ones left picking up the pieces. Use it to clarify, not to commit. When it comes to your money, you need wisdom, not wizardry.