As the digital landscape evolves, many Britons are turning to artificial intelligence (AI) chatbots to answer their pressing financial questions. A recent investigation by Which? pitted leading AI tools against human journalists to assess their accuracy and usefulness in personal finance, revealing a mixed picture. While AI proved adept at summarising general information, experts caution against relying on it for complex or personalised financial advice, particularly concerning investments.
The investigation tested free versions of five popular AI tools – ChatGPT, Google Gemini, Google’s AI Overviews, Microsoft Copilot, and Perplexity – with 15 common personal finance questions covering topics from pensions and debt to investing, savings, and mortgages. The AI responses were graded based on accuracy, honesty, relevance, clarity, and ethical responsibility. The findings indicate that AI chatbots perform well with simpler queries where information is readily available online, such as explaining how equity release works or providing tips for paying off debt. For instance, all five tools accurately identified the two main types of equity release and highlighted potential risks.
However, concerns persist regarding AI's role in more sensitive financial areas. Research from Lloyds Bank, conducted late last year, highlighted that 37% of AI users engage with these tools for investment research and recommendations. This trend underscores a potential risk, as AI models, while capable of synthesising information, may lack the nuanced understanding or regulatory oversight required for bespoke investment guidance. The Which? investigation found that while AI could ask for more information to tailor a response, such as salary and deposit for a mortgage query, the depth of personalised advice remained limited compared to a human expert.
In terms of presentation, AI tools generally excelled in clarity and context. Microsoft’s Copilot, in particular, scored highly for its well-structured answers, often presenting information in step-by-step checklists or easy-to-read tables. For example, when asked about ISA investments, Copilot clearly laid out its answer in logical sections. This ability to distil complex information into digestible formats is a significant strength, making AI a useful starting point for understanding basic financial concepts.
Despite these strengths, the overarching message for UK consumers is one of cautious optimism. While AI can offer quick summaries and initial insights, it is not a substitute for professional financial advice, especially when dealing with complex personal circumstances or significant financial decisions. Consumers should be aware that AI-generated information might not always be entirely accurate or ethically sound, and vigilance is required to avoid potential scams or misinformation.