Generative AI tools like ChatGPT are increasingly used by clients to learn about financial concepts or question their planner’s guidance. A recent survey by Betterment found that younger generations are more comfortable using AI for financial advice, with 53% of respondents using it at least once a month. Concerns remain about AI replacing human advisors, but many use AI to eliminate emotional bias in investing.

Despite the growing use of AI for financial advice, only 30% of surveyed investors trust it, and just a quarter would let AI manage their investments. Advisors note that generational differences play a role in AI adoption, with younger investors being more open to using AI. The prompting techniques used in AI advice are often generalized, leading to errors in individual application.

Clients, especially from the tech industry, are turning to AI as a second opinion on financial advice. However, advisors caution that AI has limitations and may lack context in its answers. While AI can be a useful tool, advisors stress the importance of understanding its limitations and not solely relying on it for financial decisions.

Read more at Yahoo Finance: Clients are turning to ChatGPT to double-check: ‘Is my advisor right?’