Popular AI chatbots like ChatGPT and Claude are giving some seriously bad money advice. A recent study by PubNub found these tools often make big mistakes when answering financial questions.
Researchers tested these chatbots by asking basic money questions. The results weren’t great. ChatGPT, Claude, and others gave wrong information about 30 percent of the time.
“These AI tools just aren’t ready to be financial advisors,” says Maya Rodriguez, a tech analyst I spoke with last week. “They’re trained on internet data, not financial expertise.”
The chatbots struggled most with questions about taxes and investments. One bot suggested putting all savings into cryptocurrency—advice that could ruin someone’s finances.
Even simple questions tripped them up. When asked about retirement savings, ChatGPT recommended amounts far too low for most Americans to live on comfortably.
The problem gets worse when users don’t verify information. Many people trust these AI responses without checking facts elsewhere. A Epochedge news survey found 42% of users take AI financial advice at face value.
“It’s like asking a random person on the street for investment tips,” says Rodriguez. “The AI sounds confident but lacks real understanding.”
This doesn’t mean AI can’t help with money matters. The tools can organize information or explain basic concepts. But for actual financial decisions, human experts remain essential.
Some companies are working to fix these problems. Specialized financial AI tools with proper training show more promise. These systems use verified financial data instead of general internet text.
The financial industry is watching these developments closely. Banks like Chase and Bank of America test AI tools internally before releasing them to customers. This extra step helps catch errors.
“We’re in the early days of AI financial assistance,” explains Jamal Wilson, a fintech developer. “The technology needs guardrails and human oversight.”
For now, experts recommend using AI chatbots only as a starting point for financial research. Always verify information through official sources or certified financial advisors.
As AI continues to evolve, we’ll likely see improvements in accuracy. Future versions might include real-time data access and specific financial training. But today’s versions still need human help to avoid costly mistakes.
The lesson? AI chatbots can introduce you to financial concepts, but don’t let them manage your money just yet. Your financial future deserves more careful handling than today’s AI can provide.
When technology and personal finances mix, a healthy dose of skepticism helps protect your wallet. The future of AI in finance looks promising, but we’re not there quite yet.
