Artificial intelligence (AI) is becoming more common in the world of finance.
From chatbots to investment tools, many services now use AI to offer guidance.
However, recent research shows that it might not be as reliable as it seems.
AI sounds clever, but it can still get it wrong
A 2025 study by the University of Tokyo and the University of Glasgow, presented at the SIGIR conference, found that AI often gives poor investment advice.
When the system misunderstands your goals, it can lead to choices that do not suit your needs.
Worse still, users often cannot tell the difference between good and bad advice.
When charm replaces good judgement
The study also found that people trusted AI advisers more when they had a friendly tone, even when they gave worse advice.
This emotional trust can be misleading and risky when dealing with money.
The internet is not a regulated adviser
According to Fidelity International, nearly half of UK investors now turn to social media, AI tools or online influencers when making financial decisions.
Just one in three have used a qualified adviser in the past two years.
Quick clicks, risky choices
Younger investors are especially affected.
Fidelity found that over 20 per cent of those under 45 trust finfluencers and AI more than professional advice.
A quarter said they bought a fund or product just hours after first reading about it.
Regulators are catching up, but the risks remain
The Financial Conduct Authority (FCA) recently issued 50 warnings and made arrests linked to unlicensed financial promotions online.
Despite this, unverified advice continues to spread.
Do not gamble your future on an algorithm
AI tools can help you get started, but they do not replace qualified advice.
They do not understand your personal goals, tax position or broader financial picture.