AI Financial Advice: Artificial intelligence is now everywhere. People use tools like ChatGPT and Google Gemini to write speeches, plan trips, look up laws and many other tasks. Because these tools feel quick and easy, many people also try using them for money questions. Some want to understand tax rules. Others want to learn how to invest. But new research from the UK shows that AI is not ready to replace human financial advisers.
Consumer group Which? tested six big AI tools to see how well they answer normal money questions. They tried ChatGPT, Google Gemini, Gemini AI Overview, Microsoft Copilot, Meta AI and Perplexity. They also found answers that were confusing or even risky. Andrew Laughlin from Which? said, “Everyday use of AI is soaring, but we’ve found that when it comes to getting the answers you need, the devil is in the details.”
He also said, “Our research uncovered far too many inaccuracies and misleading statements for comfort, especially when leaning on AI for important issues like financial or legal queries.”
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In September 2025, Which? asked the six AI tools forty common questions. They covered money, tax, rights and other daily topics. The results changed a lot from tool to tool. To check how careful the tools were, Which? put a wrong number inside one question.
They asked, “How should I invest my £25,000 annual ISA allowance?” even though the true ISA limit is only £20,000. ChatGPT and Copilot did not fix the error. They both gave advice that could make someone break HMRC rules by putting in too much money.
Which? also asked about tax codes and refunds. ChatGPT and Perplexity showed links to paid refund companies mixed with the free government service. This could make someone pay money for a refund they could get for free. The companies behind the AI tools all said users should report mistakes and always double check answers.
Laughlin gave a clear warning. He said, “When using AI, always make sure to define your question clearly, and check the sources the AI is drawing answers from. For particularly complex issues, always seek professional advice – particularly for medical queries, before making major financial decisions or embarking on legal action.”
In October the group Investing Insiders tested many AI tools with one hundred finance questions. They covered savings, homes and retirement. AI tools gave correct answers only 56% of the time. They gave misleading or tricky answers 27% of the time. They were wrong 17% of the time. That means 44% of answers were no help for people who need real financial advice, reported Money week.
Antonia Medlicott, who leads Investing Insiders, said, “Our study shows the worrying trend that AI isn’t providing sound financial advice when prompted.” She also said, “Even more concerning is that millions of Brits are doing this and being misled across a range of topics, from basic advice to savings accounts and large life events like buying a home or retirement.”
Some experts do not blame the AI tools alone. Mitali Deypurkaystha, an AI strategist from Impact Icon AI, said people sometimes use the wrong tools or ask questions badly. She said, “Some of what they call failure is user error. Ask AI today for the current UK state pension and you’ll likely get citations straight from gov.uk.”
Mitali also said, “The other likely error is user knowledge on choosing best-fit AI tools.” She explained this as a medical mistake, saying, “That’s the ‘GP-vs-surgeon mistake.’ You wouldn’t ask your GP to do open-heart surgery, don’t expect a general AI to be your personalised financial adviser.” She added, “There is no public, expert-level finance-advice AI for them to test. The real warning isn’t ‘don’t use AI’ – it’s ‘teach people to use it well.’ Give the UK accessible, national AI-literacy programmes now.”
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Even with better skills the AI still faces limits. AI money tools are not regulated by the Financial Conduct Authority. Because of that, they cannot be trusted like real advisers. Still, people often use them because the tools feel fast and friendly.
AI is exceptional at processing information, but it doesn’t know your goals, your tax position, your time horizon or how you actually feel about risk. And more imortantly it can’t take responsibility if the guidance is wrong.
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