Artificial intelligence has become the new “agony aunt” for millions of Brits with more than one in five adults using it to research money matters.
But experts are warning that asking ChatGPT to sort out your finances could leave you thousands of pounds out of pocket.
And while new technology can bring genuine benefits, the dangers of treating a chatbot like a financial adviser are mounting.
This week, Garfield AI – a legal service run by professionals and approved by the Solicitors Regulation Authority – recovered £7,000 of debt for one customer for just £7.50. Consumer groups hailed it as a win because it operates under the same rules as a law firm.
But money experts are warning that ordinary ChatGPT, the general-purpose AI tool, is different altogether.
Far from making you richer, they say it could saddle you with crippling tax bills, bad mortgage choices or disastrous pension decisions.
Colette Mason, founder of London-based Clever Clogs AI, said the danger lies in assuming that success stories such as Garfield’s mean general chatbots can be trusted with life savings.
She told Newspage: “Financial advice is a context problem, not a maths problem. Untrained AI doesn’t know you have a mortgage, debts, investments, or a low-risk tolerance. Its over-confidence creates a catastrophic psychological trap for novice users.”
She added that MIT’s Andrew Lo has said proper decision-making AI is still “five years away”, stressing: “Until an AI assumes full fiduciary duty, it remains a smart toy, not a trustworthy advisor.”
Tony Redondo, of Cornwall-based Cosmos Currency Exchange, said AI is useful for “heavy lifting” tasks such as learning jargon, drafting letters or building a budget.
But he warned: “The danger emerges when clients use AI for specialist advice on irreversible, highly personalised matters like tax, mortgages, pensions, or insurance – where AI hallucinations could have serious consequences.”
Others warn the risks go beyond money. Newcastle-based business leader Mitali Deypurkaystha said: “ChatGPT has dazzling intelligence, but no wisdom.
« Used properly it can help with interviews and presentations. But start treating it as a therapist or confidant and communication skills diminish, isolation creeps in.
« We’ve already seen reports of psychosis, people falling in love with chatbots, and even a tragic suicide.”
Mo Saleh, CEO of Quantum Placements, said tools like ChatGPT can save time when summarising financial documents or drafting creditor letters.
But he cautioned: “Risky uses include relying on AI to calculate tax liabilities, restructure debts, or recommend financial products. Outputs can sound convincing but still be wrong, incomplete, or outdated.
« The risk becomes real when people move from using AI as a support tool to treating it as a substitute for regulated advice.”
