Giving ChatGPT private information can put your safety at risk. Before entering private information, you should always think twice.
Trust, but check. Use ChatGPT to get ideas and answers, but make sure the facts are correct before you use them.
Without a doubt. ChatGPT is quick, smart, and a lot of the time very useful. The tool usually works as promised, whether you’re writing letters, breaking down hard topics, or coming up with dinner ideas. It fits right in with everyday life. Still, not every task fits the way it was made.
It stops being smart and starts being risky when users start to trust it with choices that aren’t just for their own convenience.
Some tax terms, like “capital gains,” can be hard to understand. It is possible to be clear. This is where ChatGPT comes in handy. But when it comes to real numbers, like income, expenses, or tax returns, the situation is important. The tool doesn’t have access to personal information, and answers may be too general or out of date. A skilled review is necessary to get the whole picture. That’s not what this tool gives you.
Strong doesn’t mean perfect. It helps with many things, but not all of them. Before you share important information, big choices, or private matters, give it some thought. The break might have saved you grief. Users are told to believe what they’re reading and get help from a real person before using AI models that get data from an old database.
Not personalizing it enough
AI tools like ChatGPT use trends in data to give general advice.
Their decisions are based on general rules and don’t consider things like age, income, or financial goals.
This could lead to suggestions that aren’t accurate or that don’t meet your wants.
Not Being Responsible
AI doesn’t have any regulatory control or duty of care.
AI can’t be blamed for bad advice like human financial gurus can.
If the person loses money because of AI-generated advice, they have no way to get their money back. There is a chance of mistakes Studies have shown that AI can make financial information that is wrong or false. The AI might have trouble with complicated financial situations, which could lead to bad advice. Users might accept AI outputs without checking to see if they are correct.
Concerns about data security
People can have their identities stolen if they give AI private financial details.
When you use AI tools for financial questions, there are risks to your data privacy.
Having emotional intelligence
AI doesn’t have the empathy and knowledge that human advisors do.
Emotions play a big role in financial choices, and AI can’t handle them well.
After posing financial queries to OpenAI’s ChatGPT 100, researchers had their company’s industry specialists evaluate the responses. According to the survey, 35% of financial queries were answered erroneously by AI, and one out of three answers were hallucinations of questions about investments and money.
The study posed timeless and relevant queries, such as:
“How can I save money for my child’s schooling?”
“What is the difference between the average salary and the average pension?”
“What are the benefits and drawbacks of gold investing?”
65% of the chatbot’s responses were accurate, 29% were deemed to be partial or deceptive, and 6% were judged to be entirely wrong.
In January, Andrew Lo, the director of the MIT Sloan School of Management’s laboratory for financial engineering, warned Fortune that using AI for guidance is “quite dangerous” in three major domains: law, finance, and medicine.
So, while AI may influence some aspects of financial advice, it hasn’t replaced the professionals — and the reasons are complex. The work of a highly skilled Portfolio Manager involves human judgment, nuance, and interaction. Their work remains beyond what current AI tools can replicate. Thus, even in places where AI aids in “generalized” interpretation, professionals schooled in multi-disciplined financial fields remain indispensable.
Be safe, be sure.
