A work colleague told me he was going to hire a CFP to help with his family’s financial planning, but after using AI, he decided to go it alone. “Why pay for something I can get for free?” Taken a step further: Should you fire your financial planner and use AI instead?
Simply posing that question might put my own CFP certification in jeopardy, but more people are turning to AI to clarify financial topics — and even to make decisions.
According to a Credit Karma survey from last summer, two-thirds of Americans who have used GenAI say they’ve used it to seek financial advice, rising to 82 percent among Gen Z and Millennials. Even older generations are entering the fray: 59% of Gen Xers and 30% of boomers have asked AI for financial advice.
If you’re considering AI as a tool, there’s a big warning: Never share sensitive personal information with a chatbot. AARP cautions users to keep data like Social Security numbers, driver’s license and tax details, account numbers, medical records, and passwords out of AI conversations. These platforms aren’t regulated like financial institutions, so your information could be stored or reused in ways you don’t control, putting you at risk of fraud or identity theft.
With that precaution in hand, there’s no harm in treating AI like a smarter search bar — asking it to explain the difference between a Roth and traditional IRA, how compound interest works, or how a 529 college savings plan differs from a custodial account, or having it build you a personalized spending spreadsheet. These are useful basics that can inform your thinking. But can AI actually replace a financial planner when it comes to decision-making? The answer is no.
The reason is that a chatbot only knows what you tell it, and you may not know the right inputs to help form a better answer for your situation. A question like “when should I claim Social Security retirement benefits?” depends on a number of variables, like how much you’ve already saved, your general health and life expectancy, and whether a spouse relies on your earnings record. If you don’t know how to prompt AI with the right questions, the answer might not be fully formed.
Any CFP will tell you that about half the job is technical expertise — the other half is managing human emotions and subtleties. AI can’t weigh your values, your family dynamics, your health, or the years of trust built into a relationship with a human advisor. That’s not a knock on the technology; it’s a boundary worth respecting, especially for something as consequential as a major investment move or an estate plan.
