A recent USA TODAY article highlighted Jennifer Allen, a realtor in Ohio, who discovered she had piled up $23,000 in debt after hospital bills and time away from work. She turned to ChatGPT for help. After giving the chatbot the required information, it not only calculated her debt but also suggested daily actions to chip away at it.
Allen followed through on the advice, documenting her efforts on TikTok. After two 30-day challenges, she had raised more than $13,000 from a mix of the chatbot’s advice and income from TikTok’s Creator Rewards Program. Today, she has less than $5,000 left to pay off.
Her story is unusual but not unique. ChatGPT now reaches about 700 million users weekly, according to OpenAI, four times more than a year ago. A Morning Consult survey found that more than half of U.S. adults use AI summaries when searching online, and 1 in 10 do not consult other sources. Another study from Southeastern Oklahoma State University reported that 1 in 3 Americans have used AI to make a career decision.
The question is whether chatbots are truly ready to guide something as personal as your finances.
Testing AI’s financial wisdom
USA TODAY posed three common personal finance questions to ChatGPT, Claude, Copilot, Gemini, and Grok.
When asked how much money someone needs to retire, most chatbots hedged with caveats. Grok alone gave a specific number: $1 million. The others suggested calculators, financial planners, or asked for more details.
All mentioned the so-called 4% rule, which holds that retirees are unlikely to run out of money if they withdraw 4% of their savings each year. But financial academics note that this rule, more than 30 years old, was declared outdated by its creator in 2022.
Most responses relied on broad rules of thumb rather than details specific to an individual’s situation.
Where AI gives safer answers
Chatbots fared better with a straightforward question: how to improve a credit score. Their suggestions aligned with conventional wisdom, such as paying bills on time, keeping credit use low, and maintaining a mix of accounts.
Experts note this kind of question works well because the information is standardized and publicly available, such as from FICO. In these situations, AI can provide clear and consistent answers.
When numbers get tricky
Things grew complicated when USA TODAY asked what home price a couple in Illinois could afford, using the state’s median income and typical down payment.
The chatbots gave a wide range of results:
- ChatGPT: $300,000 to $320,000
- Gemini: $275,000 to $325,000
- Claude: $245,000 to $270,000
- Copilot: $225,000 to $250,000
- Grok: $200,000 to $240,000
That is more than a $100,000 gap between the highest and lowest estimates. Experts noted that without details such as credit scores, preferred mortgage payments, or local taxes, the suggestions can be overly simple and not very useful.
Expert concerns
Industry voices say AI answers often feel like condensed versions of dozens of human opinions. The output can be broad and generic rather than tuned to one person’s reality. Critics also stress that AI cannot replace the human element such as understanding emotions, challenging assumptions, or recognizing when financial goals are misaligned with circumstances.
Some technologists suggest AI works best as a literacy tool, helping people grasp terms, recognize options, and build confidence before meeting with a financial professional.
Even the companies behind these chatbots advise caution. Google warns that Gemini should not be relied on for financial advice. Anthropic, the maker of Claude, says its model should supplement, not replace, licensed advisers. Microsoft recommends fact-checking Copilot’s responses and consulting a professional when decisions carry real consequences.
What this means for your money
AI can make financial guidance feel more approachable, but it should be used with care. Think of it as a first step, not a final answer.
- Double-check AI answers. Even advanced models can provide outdated or conflicting advice.
- Use AI for education, not execution. Chatbots are better for understanding concepts than making final moves.
- Bring in human expertise. A planner or adviser can factor in personal circumstances and emotions that AI cannot. If you have more than $100,000 in savings, SmartAsset offers a free service that matches you to a vetted, fiduciary advisor in less than 5 minutes.
- Watch for oversimplification. Complex goals like retirement or homeownership require tailored planning.
- Turn generic advice into specifics. If AI suggests building an emergency fund, choose an account that pays more. SoFi Checking pays a competitive APY on savings, plus a cash bonus for new members who set up direct deposit. (May change without notice.)
- See AI as a supplement. Treat it like Wikipedia for money, useful for orientation but not the last word.
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For Jennifer Allen, using AI meant confronting her debt instead of ignoring it. That confidence boost alone may be its biggest strength.
Remember: a chatbot has never paid a mortgage, faced a recession, or retired. When the stakes are high, it may be wise to combine digital advice with human judgment.
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