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Can I Trust AI With My Finances?

Can I Trust AI With My Finances?

August 01, 2023

The use of artificial intelligence (AI) has exploded in recent years, and while some people are excited about where AI is headed, others are worried we’re one step away from “I, Robot.” No matter where you fall on that spectrum, there’s no denying that AI technology is rapidly seeping into multiple industries, including financial services. But can AI be trusted?


AI in the Financial Industry

Even though ChatGPT has just recently brought AI into the limelight, AI technology has been used in the financial world for years in a number of ways.


Risk assessment: By quickly analyzing large amounts of financial data and identifying potential risks, AI can help financial advisors like us design more effective risk management strategies for clients.

Portfolio management: Machine algorithms can analyze historical market data and make predictions about future market trends, helping advisors create portfolios tailored to each client’s individual needs and risk tolerance.

Fraud detection: AI can help financial planners detect and prevent fraud by analyzing matters in financial transactions and identifying suspicious activity.

Customer service: Whether over the phone or online, AI-powered chatbots can answer basic questions, provide account information and help customers make transactions.

Personalized recommendations: By sorting through large amounts of information in a relatively short time, AI can help advisors make personalized recommendations based on financial history, goals and risk tolerance to help clients pursue their goals.


And this is just the beginning! As technology continues to evolve, AI is expected to play an even larger role in trading and investing. Assets under management by Robo-Advisors are expected to exceed $4.6 trillion by 2027! As chatbots continue to advance, they are likely to handle more complex tasks such as helping customers make investment decisions or providing personalized financial advice. But will this technology ever replace human financial advisors?


ChatGPT For Financial Help

With over 100 million users, ChatGPT and other AI programs like it have exploded in popularity. These programs can answer simple questions quickly and provide you with basic financial information, all without the need to schedule an appointment with a human advisor. ChatGPT is also helping to expand access to financial education and advice. So long as you have internet connection, you have a 24/7 helpline right at your fingertips! Plus, many chatbots are free to use, offering a cost-effective way to access financial information.


But as with any other new technology, ChatGPT should be used with caution. The advice it offers is limited to the data and algorithms it’s been programmed with, preventing it from offering any kind of personalized advice. Chatbots lack emotional support, which can be critical during times of financial stress or important decision making. There’s also potential for errors and biases, with many chatbots experiencing hallucinations, which is when the program shares made up or false information. Plus, the kind of answer you receive from a chatbot depends on how you ask the question, which means that you might not be able to find what you’re looking for without proper terminology.


The Value of an Advisor

While ChatGPT can meet some baseline needs, human financial advisors can tackle more complex issues and provide advice that simply can’t be artificially created. As AI technology continues to become more accessible, it’s important to consider the true value of personalized, human insight when it comes to your finances.


Personalized advice: Human advisors can understand your specific financial situation, goals and risk tolerance. Using this insight, advisors can offer individualized advice and create a customized financial plan that meets your needs. Maybe your dream is to become debt free or travel the world in retirement — every financial journey is unique! From investment and tax strategies to estate planning and Social Security optimization, you need a financial roadmap designed to help you pursue your specific goals.


Emotional support: Dealing with money can be deeply emotional and stressful. From inflation and taxes to complicated family dynamics, it’s no surprise that the majority of Americans say they are stressed out about their finances! Advisors can act as your personal guide and support system, providing a sense of calm as you navigate difficult financial decisions.


Extensive knowledge: AI chatbots may be able to cover the basics, but they are often ill-equipped to handle more complex financial issues, such as estate planning, tax planning and retirement planning. Creating a comprehensive financial plan requires thorough research, careful consideration and proactive planning. Do you have a succession plan for your business? How does Secure Act 2.0 affect your retirement plan? What is your strategy for long-term care? Financial advisors have the knowledge and experience to answer these kinds of questions and create a plan to address every area of your finances.


Fiduciary responsibility: Human financial advisors are required to adhere to certain regulatory standards and guidelines, which helps them provide clients with ethical and responsible advice. Chatbots operate without regulatory oversight, which can lead to inaccurate or biased advice. It’s important to work with an advisor who is not persuaded by quotas or influenced by large companies. As an independent firm, our team at Zephyrus can create a custom plan and find the best products and investments for your individual situation.


At Zephyrus, relationships are very important to us, and we believe you need to know someone to understand what is best for their money. A chatbot simply can’t provide that kind of support! While we’re excited for the ways AI technology can help our financial planning process become more efficient, nothing can replace the personal connection we build with each and every one of our clients.


To learn more about our process or get started on your own financial roadmap, schedule a meeting at