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Artificial intelligence has leapfrogged most people’s expectations. The technology makes it easy to perform repetitive tasks, access information, and save time. Some people use AI tools to answer questions about their finances, and if you join those people, you can save a lot of money.
Many AI tools are free, and you can ask for personalized advice instead of turning to a human financial advisor. The World Economic Forum projects that more than half of retail investors will turn to AI-driven investment tools for personal advice by 2027.
While the abundance of AI tools gives consumers more options and ways to navigate their financial obstacles, it won’t replace human advisors for good. Financial advisors still play an irreplaceable role that you can’t replicate with artificial intelligence. These are some of the strengths financial advisors have over their AI counterparts.
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Artificial intelligence gathers data from the web, but it also needs people who can interpret that data. Humans set the rules that AI tools use when displaying results for people’s queries, and people also fact-check AI tools.
It’s common for AI tools to “hallucinate,” a term that refers to AI spitting out inaccurate information that may sound realistic on the surface. Humans can review AI responses and address hallucinations before they get worse. However, these hallucinations can come at the wrong time. If an AI advisor provides incorrect information about filing taxes, you may end up with tax penalties.
Human financial advisors aren’t prone to making the same mistakes as AI tools that occasionally hallucinate. They can speak based on the knowledge they have acquired, while AI must be constantly monitored by humans.
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The human touch a financial advisor provides goes well beyond an experience that’s free of AI hallucinations. A financial advisor can say soothing words if a client gets stressed about sharp market volatility. They can remind you of your long-term goals and keep you on track.
You may also become friends with your financial advisor. If you both have kids who are a similar age, they may end up hanging out together. Having friendly banter with a financial advisor can make your financial journey more enjoyable.
Artificial intelligence can’t provide quality human interaction, no matter how good it gets. That’s why many people still use human financial advisors. Some people shy away from financial advisors because they’re worried about getting the wrong one or feel like it’s too much work to find a good advisor.
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Artificial intelligence can be useful for simple financial situations. For instance, you can have an AI tool review your credit card statements and look for opportunities to reduce your expenses. AI advisors are also useful for people who cannot afford human advisors.
However, people with more complex money problems may want to turn to human advisors. Estate planning for millions of dollars in assets can get complex in a hurry, and most high-net-worth individuals don’t want to risk an AI hallucination.
However, AI errors aren’t the only pitfall for these complex situations. Some people don’t know what questions to ask an AI to maximize their tax savings, ensure their estate planning is in order, or address other financial situations. AI is a valuable resource, but the level of quality you receive depends on what types of questions you ask an AI advisor.
The best human advisors know the most optimal way to grow and protect your money. They can make you feel more confident as you tackle challenging components of your financial journey.
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This article What AI Can’t Do (Yet): Why Human Financial Advisors Still Matter in 2025 originally appeared on Benzinga.com
