Will artificial intelligence make financial advisors obsolete? It may be too soon to tell, but two-thirds of Americans are already using generative AI for financial advice, according to an Intuit Credit Karma survey released in September.
Almost the same amount say they use GenAI “often” for financial guidance, and 75% of respondents say they feel AI allows them to ask questions they’d be too embarrassed to ask a financial advisor.
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“GenAI is a powerful tool for learning, planning, and managing your money in more personalized ways,” Courtney Alev, consumer financial advocate at Intuit Credit Karma, said the statement announcing the survey results. “While these tools put smart insights at your fingertips, it’s also important to understand your options and how they fit into your bigger financial picture.”
Here are the most common finance-related topics people ask GenAI, according to Intuit Credit Karma:
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Financial education and basic personal finance concepts (35%)
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Financial goal setting and action plans (35%)
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Budgeting and expense management (34%)
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Optimizing savings (33%)
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Investing in the stock market (32%)
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Large language models like ChatGPT are capable of providing somewhat accurate personal finance advice, according to economist and MIT finance professor Andrew Lo.
“”The preliminary analysis is that with a relatively light module — not a lot of data and not a lot of analytics — we’re actually able to generate passing domain-specific knowledge among large language models,” Lo said last year in a post on the school’s website.
ChatGPT “doesn’t quite pass, but it’s close,” without a module, Lo said. “It’s actually remarkably close.”
GenAI users also seem confident in its ability to provide sound financial information. Four-in-five people who used the technology for financial advice said their finances improved and 81% felt more confident managing their money, according to the Intuit Credit Karma survey.
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Of those who have used AI for financial help, 79% found the information to be accurate and 71% considered it helpful.