Roughly 1 in 5 Financial Advice Seekers Are Turning to AI

CFP or ChatGPT? 

Now that AI tools can serve as everything from wingmen to bedtime story readers, it’s no surprise they’re also becoming guides to budgeting, saving, investing and more. Eighteen percent of adults in the US who sought financial advice in the past year tapped artificial intelligence tools like Claude and ChatGPT, according to a recent survey from Edward Jones and Gallup. Younger Americans are more likely to ask the bots for help: 26% of Gen Z and 25% of millennials have used AI for financial guidance in the past 12 months, compared with just 7% of baby boomers. 

But that doesn’t mean people trust a bot more than a human expert. The survey found that 79% of Americans have at least some confidence in financial advisors, including roughly a quarter who have a great deal of confidence in them. On the other hand, only about three in 10 adults have some confidence in AI’s ability to offer financial guidance, and only 3% have a great amount of confidence in it. David Chubak, head of wealth and field management at Edward Jones, said the data points to a more nuanced future where people use multiple sources of guidance. 

“Financially fulfilled adults tend to combine their own research, personal networks and professional expertise,” Chubak said. 

Bots and Human Beings  

So when it comes to financial guidance, we’re likely not going to see people making a choice between artificial intelligence and advisor intelligence: 

• There can be a place for AI in financial advice, especially for younger investors at the beginning of the wealth accumulation phase, said Edward Mahaffy, an advisor with ClientFirst Wealth. If its advice is aligned with Vanguard’s asset allocation suggestions, for instance, then it can be a convenient tool to hopefully pique the investor’s interest in a deeper dive. “The danger is in taking AI as gospel without vigilant efforts to verify it,” he added. “This is especially true when one is nearing or already in retirement, where there can be little room for error.” 
• “AI can be a great starting point for low-consequence decisions,” said Michael Espinosa, an advisor with TrueNorth Retire. “It can even help people get organized so that their first meeting with their financial advisor goes more smoothly.” But the bigger the stakes, the more important it is to engage with a financial advisor. 

Money Talks. The study found that AI use skews somewhat higher among financially stressed adults. “That tells us many people may be looking for accessible ways to get answers and direction,” Chubak said. “But it also reinforces why expanding access to trusted professional guidance remains so important.”