Beware investing advice from chatbots, influencers
Accessing information from AI chatbots (for example, ChatGPT, Claude, Perplexity or Google AI Mode) and “finfluencers” (social media accounts that provide financial advice) is growing in popularity, but these channels often provide information that is incomplete, generic or misleading. While many strive to provide reliable advice, they often fall short. Using less-than-ideal financial guidance can lead to costly mistakes, missed opportunities or long-term harm.
According to the Certified Financial Planning Board, “financial misinformation is any type of incorrect or misleading financial information.” Finfluencers are a growing source of financial misinformation. According to the Canadian Department of Financial Protection and Innovation, “A finfluencer is a person who, by virtue of their popularity or cultural status, can influence the financial decision-making process of others through promotions or recommendations on social media. They may influence potential buyers by publishing posts or videos to their social media accounts, often stylized to be entertaining so that the post or video will be shared with other potential buyers.”
Some of the caveats against taking advice from finfluencers is that they are not regulated, might not have your best interest in mind or provide only generic advice. Anyone can post financial advice online, regardless of expertise or accountability. Unlike certified professionals, titles such as “money coach,” “wealth mentor” or “finance expert” have no legal meaning or oversight.
Many influencers are paid to promote specific products, prioritizing marketing over your best interest. The more sensational get-rich-quick schemes, risky strategies (like crypto) and false promises get picked up and spread quickly. This content promotes a sense of urgency and a general fear of missing out. The advice is geared to the masses and isn’t tailored to your unique situation.
AI chatbots can handle complex tasks in seconds and automate routine tasks. The appeal is that AI tools offer quick, on-demand answers that can help users make sense of complex financial topics such as taxes, budgeting, investments and retirement planning. According to a survey from Intuit Credit Karma, “about two-thirds of Americans have used AI for financial advice.” This percentage rises to 82% among Gen Z and millennials.
In our society, money is a taboo topic. There is a real lack of financial education available, and using the internet makes people more comfortable asking questions. The anonymity allows users to ask money questions that they might be hesitant or embarrassed to ask others.
The downside is that chatbot financial advice varies wildly in accuracy. Another major downside is that these tools tend to struggle with providing accurate advice for specific situations, especially when nuanced factors are involved. One of my favorite responses is, “It depends.”
According to Empower’s July 2025 “Return on Advice” survey, more than 76% of Americans say that “technology can provide financial information but not judgment or trust.” Best practice is to cross-reference advice with basics from reputable financial sites (government sites, financial news). Before making a significant financial decision, it’s best to consult a fiduciary financial adviser, who is legally bound to act in your best interest and can provide personalized, comprehensive guidance. Before trusting a finfluencer or other financial professional, check their credentials. Look for a certified financial planner or licensed professionals using FINRA’s brokercheck.finra.org and the SEC’s investor.gov.
Technology is great when used appropriately and with caution. Understanding the limitations and pitfalls of your source of advice can save you from making mistakes. Generic rules of thumb that work in most cases might not work in your specific instance. Also, if something sounds too good to be true, it more than likely is not the right advice. Financial decisions should be researched and discussed with a fiduciary adviser—preferably one who specializes in working with people in similar situations.•
~Jalene
