AI is becoming a go-to money tool
More Americans are using artificial intelligence to help manage their personal finances, but financial experts say the technology should be treated as a support tool, not a decision-maker. CBS News business analyst Jill Schlesinger said AI can be useful for general education, but warned that relying on it for major financial decisions can be risky because chatbots can “hallucinate” and generate incorrect information.
Schlesinger also cautioned against putting too much trust in financial influencers on social media. She said many “finfluencers” are not credentialed and are often trying to sell products or services, creating conflicts of interest for people seeking guidance.
How common AI money advice has become
A Credit Karma report released in September found that 66% of Americans have used generative AI for some form of financial advice. Usage is higher among younger adults, with 82% of Gen Z and 82% of millennials saying they have used AI for financial guidance.
According to the report, the most common uses include basic financial education and goal setting. People also use AI to ask about retirement savings and investing in the stock market.
Privacy and “oversharing” concerns
Schlesinger urged users to be careful about what they share with chatbots, citing privacy risks. She said people should read privacy policies before entering sensitive personal data into AI tools.
She pointed to research indicating that some AI chatbots may retain information users share and may use it to train their models, which raises concerns for anyone discussing income, debt, account details, or other identifying financial information.
Where experts suggest people turn instead
For those making bigger financial moves, Schlesinger recommended using more established, structured options. She suggested starting with an employer-sponsored retirement plan as a core way to invest, and leaning on reputable investment firms for guidance on diversified products like index funds or exchange-traded funds.
She also said traditional support still matters, including seeking input from a trusted, unbiased third party. Her bottom line: AI can be helpful for learning, but people should not rely on it alone for decisions that can have long-term consequences.