Can you trust AI with your finances?

Many people are turning to AI tools for help with their finances. But should you trust them? We explore the benefits and limitations of AI for financial planning, and how to use it safely.

Once the stuff of science fiction, using AI for help with day-to-day tasks has become increasingly commonplace. Globally, around half of consumers have used AI to support financial decisions. 

Despite more of us turning to AI for help with money matters, just 19% of people in the UK say they are confident that AI-generated financial advice can help them make the right decisions.

Understanding both the strengths and limitations of AI can help you decide when it's useful and when it's worth seeking additional support.

How people are using AI for finances 

AI-powered apps and chatbots are fast becoming go-to sources of financial information, particularly among younger generations. 

According to a recent YouGov poll, adults born after 1997 are the most comfortable receiving AI-generated financial advice, while separate research suggests that younger investors are more likely to rely on AI to inform investment decisions.

It’s easy to see why. AI provides instant answers, cutting down research time and summarising complex topics in seconds. 

For some, AI can make financial education more accessible and less intimidating, with many people now using it to:

•    Analyse their spending habits
•    Create budgets 
•    Set savings goals
•    Compare financial products
•    Understand complex financial topics 

The risks and limitations of AI financial advice

So, if AI can be such a helpful tool, what’s the problem?

Unfortunately, using AI for financial advice is not without risk - as we explore below.

Factual inaccuracies 
One of the biggest risks of consulting AI about finances is that it can sometimes generate inaccurate or entirely fabricated information, a phenomenon often called "hallucination".

Some users report receiving incorrect information when asking chatbots about things like tax regulations and insurance, while a recent study found that the top AI models can return frequent inaccuracies depending on how they are prompted.

Less protection
In the UK, personalised financial advice is a regulated activity. Only financial advisers authorised and regulated by the Financial Conduct Authority can give personalised advice about money matters. 

As AI chatbots are unlikely to have a full picture of your finances, they may return unsuitable recommendations. When a financial adviser gives unsuitable advice, consumers have certain legal protections – this is not the case when following AI-generated guidance. 

Lack of emotional understanding 
Chatbots may sound empathetic and supportive, but their conversational style should not be mistaken for human understanding.  

It may feel as though a chatbot is ‘on your side’, but it’s important to be cautious. Money matters can be as emotional as they are practical and relying on AI alone for guidance risks missing out on the benefits of human judgement.

Risky investment advice
Because AI chatbots tend to present information in a confident and authoritative way, it can be easy to overestimate their reliability. 

This can be particularly risky when asking AI about investments. Following a chatbot’s guidance without checking it against trusted sources or seeking professional advice can expose people to risks they may not fully understand or be willing to take on. 

Combining AI with professional support

So, does this mean we should avoid AI completely? In short: no. Used with caution, AI chatbots can be a valuable source of financial information, and a great starting point for research.

However, relying on AI alone is unlikely to be the best approach. Instead, it should be used alongside trusted sources of information, and ideally, professional support. 

Seeking guidance from a financial adviser or checking information with a trusted organisation like your bank or pension provider can help you make safer, more informed decisions.

Checklist: Using AI safely

When using AI to research financial matters, keep yourself safe by following these simple steps:

•    Use AI as a starting point 
When you’re in the early stages of research, AI can offer helpful insights into unfamiliar topics – but don’t stop there.

•    Consult trusted sources
Instead of limiting your search to AI, seek out other insights from trusted resources like GOV.UK, MoneyHelper and here on MoneyPlus.

•    Fact-check information
Take time to verify claims. Keep in mind that AI can sometimes generate inaccurate or misleading information, so don't assume everything it tells you is correct.

•    Protecting your personal information
Be cautious about sharing sensitive financial information with AI tools. Avoid entering account numbers, passwords or detailed personal financial data unless you're using a trusted service and understand how your information will be stored and used.

•    Speak to a professional
Combine AI guidance with professional support, such as speaking to your bank, pension provider or a financial adviser. 

Next steps

AI can be a useful tool for learning about personal finance, understanding unfamiliar topics and organising information. But it works best as a supplement, not a substitute, for trusted guidance. For important financial decisions, always verify information and seek professional advice where appropriate.

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The information here is based on our understanding in July 2026 and shouldn’t be taken as financial advice.

Your own personal circumstances, including where you live in the UK, will have an impact on the tax you pay. Laws and tax rules may change in the future.

Standard Life accepts no responsibility for information on external websites. These are provided for general information.