Can ChatGPT help you get out of debt? What experts and users say about AI chatbots' financial advice

AI chatbot for financial advice: Artificial intelligence tools such as OpenAI's ChatGPT have become a go-to resource for individuals who need assistance with personal finances, as per a report. From managing budgets to retirement planning, many are looking to AI to provide guidance, however, while AI can provide speedy solutions, experts warn that it cannot substitute for personalised assistance from financial planners, according to a USA Today report.

AI Tools Are Changing How People Manage Their Personal Finances

One person who has found real value in AI’s support is Jennifer Allen, a realtor who depends on ChatGPT for, among other things, overseeing grocery lists and creating a website for her practice, as per the report. When unexpected hospital bills and time away from work after giving birth led her to depend on credit cards, Allen's debt quietly grew and she was scared to tally the total amount, as reported by USA Today.

However, one day, she thought of asking ChatGPT to help, and then fed the AI chatbot the required information and it told her she had amassed $23,000 in debt, according to the report. Allen was shocked by the number, and did not know how she could pay it off and said that she didn’t even consider consulting a financial planner, however, she ended up asking ChatGPT, as per the USA Today report.


Allen revealed that, “Even if a financial planner told me something, I would still go to Chat to run it by them,” as quoted in the USA Today report.

She then asked ChatGPT how she could pay it off, and the AI provided her with a single small task to do each day, which Allen did and also documenting her progress in two 30-day challenges on the social media platform TikTok, according to the report.

By taking ChatGPT's suggestion and leveraging the Creator Rewards Program on TikTok, Allen was able to raise $13,078, reducing her debt to almost $5,000, as per the USA Today report.

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Millions of Americans Now Use AI Every Day

ChatGPT is not the only AI platform humans are using to answer their queries, according to the report. A Morning Consult survey discovered that over half of American adults look to AI-generated summaries when they are searching online, and one out of ten are reliant on AI alone and don't check other places, as per the USA Today report. Another study by Southeastern Oklahoma State University found that 1 in 3 Americans have used an AI tool to make a career decision, according to the report.

OpenAI’s Nick Turley said that ChatGPT has rapidly grown, reaching about 700 million users weekly, which is four times more than last year, as reported by USA Today.

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Tech Companies Admit AI Chatbots Can Make Financial Mistakes

While some people believe AI could completely change how we approach financial planning, making advice more accessible to everyone, as per the USA Today report. But others caution against putting too much trust in these tools when it comes to managing money and even the companies behind popular chatbots urge users to be careful, according to the report.

Google warned that large language models, like Gemini, can "hallucinate" and present inaccurate information as factual, and the tech company's help center highlighted that people should not rely on Gemini for financial advice, as per the USA Today report.

While a spokesperson for Anthropic, maker of Claude, explained that while Claude can help people become more informed, it should not replace licensed professionals for personalized financial decisions, according to the report. The Anthropic spokesperson said, “The most successful approach we see is people using Claude to level up their financial literacy, then taking that knowledge into real-world decisions,” as quoted in the USA Today report.

Even a spokesperson for Microsoft said about tools like Copilot that “AI can still make mistakes, so we always recommend people check sources and reach out to a financial adviser if needed,” as quoted in the report.

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Financial Planners vs. Chatbots: What Experts Say

A money expert who founded Her First 100k, Tori Dunlap pointed out that AI chatbotsare “There as your digital robotic personal assistant. It’s not meant to challenge you or push back, or help you think differently. That’s something a coach or expert can you help you do,” adding, “I would also say though, if you’re going to go from no financial advice to ChatGPT, I will take ChatGPT every time,” as quoted by USA Today.

FAQs

Can AI replace a human financial planner?
No, AI can’t fully replace the personalised and emotional understanding a human advisor provides, as per the USA Today report.

Should I use AI for my finances?
No, use AI as a helping tool, but always consult professionals for personalised advice, as per the USA Today report.