AI not advanced for personalized financial advice; Betterment exploring potential, caution advised

From Yahoo Finance: 2025-06-26 07:00:00

Artificial intelligence is not yet advanced enough to provide personalized financial advice, according to Betterment’s Nick Holeman. While AI is useful for general financial education, caution is advised for personalized advice due to potential inaccuracies. Betterment, a pioneer in robo-advising, does not currently use AI for financial advice but is exploring its potential. Despite AI’s improvements, concerns remain about its ability to handle technical details and mathematical calculations. Users with financial knowledge can benefit from AI if they ask the right questions and understand prompt design. However, caution is advised for both AI users and financial advisers due to potential tax changes and political uncertainties affecting investment decisions. Investors are becoming increasingly nervous amid political uncertainty, holding onto cash longer than usual but not engaging in mass panic selling of their retirement portfolios.



Read more at Yahoo Finance: Should you use AI for your retirement plan? Expert weighs in.