As Americans turn to chatbots for answers on everything from grammar questions and popular baby names to how to store berries so they last longer, it’s no surprise that some are also seeking financial advice from AI.
However, the stakes are markedly higher when it comes to financial decisions — you could potentially lose a lot more than a pint of blueberries.
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Researchers have turned an eye to how large-language model (LLM) AI chatbots, such as ChatGPT and Claude, give financial advice — and their findings might surprise you.
One study found that the advice that an LLM gave to men differed from that which it gave to women, with long-term results that could mean a woman would end up with tens of thousands of dollars less.
Americans turning to AI for answers
When it comes to using AI to manage their finances, Americans aren’t shy.
Market research company JD Power found that 40% of consumers said they have used AI for help with personal finances, and 27% said it was somewhat or significantly helpful.
The rates of those who said it was helpful were highest among people who are under age 40 (40%), and those who are “overextended” (a metric JD Power assigns based on factors such as spending/savings ratio and creditworthiness). Of those consumers considered overextended, 48% said AI significantly or somewhat helped, compared to 29% ranked as “healthy” finance-wise, 21% of those who are “vulnerable” and 15% of those considered “stressed.”
Of those consumers who said they use AI tools (including those who said they use AI, but not for personal finances), 24% said they used it to compare prices before buying things, 22% used AI to search out coupons, deals or discounts, and 21% said they used it to find ways they could increase their income or save money.
When asked whether AI helped them “make smarter financial decisions during times when affordability is a concern,” 34% of consumers who use AI tools agreed. When asked the same question about their bank, 35% of consumers who have a bank account agreed.