You don’t have to choose: When to trust AI tools and when to call your financial planner

AI is an increasingly important part of everyday life. Mobile phones, satnavs, smart assistants, streaming platforms, and banking apps (to name just a few examples) rely on this technology to provide the services and support you need. These might include autocorrecting messages and emails, navigating to a new destination, or even picking which TV show to watch next. There’s seemingly no end to AI’s uses.

Indeed, research findings published by FTAdviser reveal that around 2.7 million UK adults use AI tools for financial advice, with 52% saying they would act on the guidance they receive.

However, while platforms such as ChatGPT and Gemini offer a quick and easy way to access information, it’s important to understand their limitations – especially when making decisions about how to manage your money.

Keep reading to find out when you can trust AI tools to help you keep on top of your finances, and when it’s crucial to seek bespoke advice from a (human) financial planner.

4 financial tasks AI could help you with

Here are four clever ways to use AI tools to help you manage your wealth more efficiently:

1. Researching definitions of financial jargon

There’s no shortage of information online about a wide range of money management topics, from pensions to investments. However, much of this content is littered with financial terms that aren’t typically used in everyday conversation.

Unfortunately, this can make personal finance feel complicated and intimidating. As such, it might lead you to put off dealing with important money matters.

That’s where AI tools come in. They can break down complex concepts and legal terminology into plain English in seconds, helping you to access and understand the information you need.

Just remember that it’s always wise to cross-reference AI responses with reliable sources, such as the government website, to ensure the definitions provided are accurate and up to date.

2. Generating financial checklists

Financial planning involves many different aspects of your life, for example, earnings, spending, saving, borrowing, health, work, family, and later-life care. As such, it’s easy to miss something important if you’re not organised.

AI can help you create useful financial checklists to pull all these moving parts together, so that you can see what needs attention and when. Having a clear idea of your priorities could reduce errors, alleviate stress, and help you feel in control of your wealth. It could also ensure you’re prepared for discussions with your financial planner and other professionals (more on this later).

3. Building positive financial habits

Consistently repeating small behaviours over time is key to effective wealth management. However, building positive habits can be surprisingly difficult if you rely on willpower alone.

For example, you probably know that saving and investing more each month is likely to be worthwhile in the long run, but short-term temptations to spend may get the better of you.

AI could help you build better financial habits by:

• Providing reminders for important tasks and deadlines
• Automating monthly savings and investments
• Organising tasks into actionable lists.

4. Preparing for meetings with your financial planner

AI tools can help you get the most out of meetings and reviews with your financial planner by helping you:

• Identify gaps in your understanding
• Organise or summarise information
• Generate useful questions and discussion points
• Improve your general knowledge of financial topics and terminology.

This preparation could lead to more productive conversations with your financial planner, clearer decisions, and improved outcomes.

4 times you need to speak to a financial planner instead

As you can see, thoughtful use of AI tools could help you save time and feel more in control of your finances. However, human advice is crucial when:

1. You need human empathy and support

Emotions and financial decisions are often connected, especially if you’re facing a significant life event, such as divorce, bereavement, or redundancy.

In these situations, AI cannot read your body language, calm your anxieties, or challenge emotional decisions. As such, money decisions made under stress without appropriate advice often lead to regret.

In contrast, a financial planner can act as a rational and empathetic sounding board, providing both the practical and emotional support you need – something current technology cannot replicate.

2. You’re making decisions that carry real financial consequences

If you need help making choices about how to manage your money – such as whether to transfer a pension or how to draw down your retirement income – it’s time to seek professional, in-person advice.

This is especially true if large sums of money are involved; for example, if you’re deciding what to do with a substantial inheritance or business sale proceeds.

AI can be useful for general research, but it can’t carry out the detailed assessments and risk analysis necessary to help you make informed decisions on matters that carry real, and potentially long-term, consequences.

3. Your situation is complex and needs a holistic approach

Financial decisions are often multi-layered and interconnected. For example, gifting assets to loved ones during your lifetime could reduce a potential Inheritance Tax (IHT) bill, but this may leave you with a smaller retirement income.

Moreover, you may have a complex financial situation, such as a blended family, business ownership, or a large estate near IHT thresholds.

As such, managing the many and varied aspects of your finances requires a coordinated and tailored approach – one that aligns with your unique strategies and goals.

While AI has advanced significantly in recent years, it cannot offer the level of personalisation provided by a (human) financial planner who will:

• Look at the whole picture when helping you make key decisions
• Offer advice and guidance on managing competing priorities
• Anticipate and plan for unintended consequences and unexpected events.

4. Accountability matters

An AI chatbot has no responsibility to act ethically, and currently, there are no laws or regulations to hold it accountable for negligent advice.

In contrast, financial advisers and planners in the UK must be authorised by the Financial Conduct Authority. This means they have to act in their clients’ best interests. Moreover, if you’re unhappy with the service provided, you can complain to the Financial Ombudsman Service, which will conduct an investigation.

In other words, seeking professional, human, financial advice provides a level of confidence, protection, and peace of mind that AI tools currently cannot offer.

Get in touch

To find out more about the bespoke financial advice and guidance we can provide to help you achieve your goals, please get in touch.

Email helpme@aspirellp.co.uk or call 0117 9303510.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning or tax planning.