Confidence Without Consequences
AI has quickly become one of the most popular sources of financial guidance, and the shift happened almost overnight. According to an Intuit Credit Karma survey, two-thirds of Americans who have used generative AI say they have turned to it for financial advice. Among Millennials and Gen Z, that number climbs to 82%. For comparison, only about two in five Americans currently work with a financial advisor. Just behind health and wellness, financial advice is now the second most common use case for generative AI.
It’s easy to understand the appeal. People are curious, motivated, and actively looking for tools to help them make smarter financial decisions. Nearly half of consumers say they are increasing their savings and investments, and 77% report actively monitoring for fraud. Americans are more financially engaged than they have been in years, and that is genuinely encouraging.
The concern is what happens when that curiosity meets a tool that sounds authoritative but has no obligation to be right. The same survey found that 85% of respondents who used AI for financial advice acted on its recommendations, and 52% later reported making poor financial decisions as a result.
The quality of the advice helps explain why. A joint study by 5W and Haute Wealth, The Wealth AI Audit, tested five major generative AI platforms using real-world questions from wealthy families, covering estate planning, insurance strategies, business succession, and charitable giving. The platforms confidently cited outdated tax laws, produced inconsistent answers to identical questions asked on the same day, and consistently highlighted the benefits of complex strategies while minimizing or omitting key risks.
Perhaps the most telling limitation is that AI does not ask follow-up questions. A real advisor, when evaluating whether a strategy fits, would consider factors like liquidity, tax situation, risk tolerance, and family dynamics. AI does not. It simply responds. For younger generations in particular, this is particularly risky. Many may not yet understand what fiduciary duty entails. This duty places a number of obligations upon a registered investment advisor (such as us), including acting solely in the client’s best interest at all times; putting the client’s financial well-being above their own; and having a duty of loyalty. The practical consequences of these duties include fully presenting risks alongside benefits and ensuring advice is tailored to the client’s individual circumstances. AI carries no such duties or responsibilities. It often delivers answers with confidence, regardless of accuracy and without the nuance complex decisions require.
AI can be a valuable starting point for learning concepts or organizing your thinking. But the financial decisions that matter most require careful planning, a thoughtful long-term strategy, and the discipline to see it through. They also require someone who understands your situation and has the judgment to ask the right questions before offering answers.
Whitney Butler