US Consumers: Only 37% would trust generative AI in financial planning1. September 2023
US Consumers: Only 37% would trust generative AI in financial planning
New York, 8/30/2023
Only 37% of American consumers surveyed trust generative AI to provide financial planning advice. This is according to a poll by the CFP Board Consumer Sentiment Survey.
This figure is higher than social media, but far below other sources such as human financial advisors or their own research. The results show that around 31% of investors feel comfortable following AI-generated financial advice without first trying it check.
The survey revealed that 71% don’t trust social media for financial advice, compared to 51% for genAI tools like ChatGPT or Google Bard.
However, after consulting a financial planner, 52% of investors feel comfortable using verified, AI-generated financial advice, while 46% have the same opinion about verified social media advice.
Surprisingly, younger investors were more reluctant to take AI advice: 62% of those over 45 were “very satisfied” with generative AI financial advice, compared to just 38% of those under 45.
JPMorgan Chase is reportedly developing a GPT-backed investment advisor. The bank registered a trademark for “IndexGPT,” which would use AI-powered cloud software to analyze and select financial stocks for clients. According to CNBC, it would analyze a wide range of data, including market trends, economic indicators and customer preferences, to offer tailored advice.
The bottom line: Robo-advisors, which use algorithms to automate investors’ asset allocation, are gaining in popularity, but their ability to compete with human financial advisors is questionable. Kevin Keller, CEO of CFP’s Board of Directors, recommends using AI for financial advice with a “trust but verify” approach.