A new study found that 64 percent of Americans are comfortable with AI creating financial plans but over half are uneasy with AI making investment decisions.
Financial planning, for everything from your first home to retirement, may often be an intimidating experience for the average consumer.
And with the rise of artificial intelligence (AI), many are now starting to seek financial advice from AI sources such as ChatGPT, DataRobot, Domo, and countless others. Experts are also sounding the alarm about overreliance on these tools.
An August Wealthtender survey of 500 Americans with household incomes exceeding $100,000 found that 64 percent of them are comfortable with AI generating personalized financial plans, including monthly budgeting and retirement forecasts. In addition, 77 percent of respondents indicated they were comfortable with AI monitoring their accounts for any unusual activity.
“People seem to recognize AI’s ability to run complex calculations and scenarios while still wanting human interpretation and guidance,” the report notes.
A financial discovery platform, Wealthtender found that most consumers regularly use online resources, including AI, to compare financial advisers before deciding whether to hire one. The survey also discovered that today’s consumers are comfortable with advisers themselves using AI tools in helping them to plan for their futures.
However, the report indicates that most respondents were uncomfortable with AI making automated investment decisions without direct human oversight, with 45 percent expressing agreement.
Jay Zigmont, certified financial planner and founder of Childfree Trust in Tennessee, told The Epoch Times that his company is currently developing an AI program to assist with life and financial planning for childless couples or individuals.
“There will always be clients willing and able to buy our services, but well-trained AI will be able to give specialized feedback, financial planning, and behavioral coaching at a much lower price point,” he said.
Zigmont cautions that people need to be aware of the right questions to ask, so AI can generate a proper investment and tax plan.
“The challenge with AI right now is that it is giving ‘generic’ advice,” he said. “It may not fit the client’s situation.”
By Mary Prenon
