Who Gives Better Money Advice?

As modern technology continues to advance at a rapid pace, artificial intelligence is now capable of performing tasks that were once exclusively the responsibility of financial experts.

Much attention is given to the breadth of data it can process and then offer financial solutions that a prospective client can consider when making investment and financial planning decisions. However, when it comes to money advice, a financial expert has several advantages in helping a client become financially free.

Here are four reasons why a financial planning expert is a more credible, efficient planner than ChatGPT.

A financial planning expert can curate a comprehensive strategy tailored to an individual’s needs. Money goals require more than financial analysis followed by a savings plan. ChatGPT can deliver a plan that provides step-by-step guidance to help someone work toward financial success.

However, it does not take into consideration the nuances of life that are real and fluid. An expert can evaluate emotional spending patterns, life conditions that can disrupt the best laid strategies, and encouraging words for someone struggling to navigate unexpected financial obstacles.

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Dealing with money can oftentimes be an overwhelming, vulnerable issue. For many years, people would never even discuss anything relating to money openly with family and friends. Therefore, having a financial professional who has the experience, expertise and words necessary to convey sound advice that provokes people to action is critical.

Sometimes, they offer guidance when you must make tough decisions or point out the benefits and potential pitfalls of a choice. That insight gives clients confidence that they are taking appropriate action and signals that they have control over their financial future.

By contrast, ChatGPT can only instruct and deliver information based on the data entered. It is not personal, and the information may be incorrect or not applicable to a specific situation. Even with all the data and options it provides, it cannot persuade someone to implement a plan.

If you want this slightly more authoritative, more consumer-facing, or more balanced between human planners and AI, I can adjust the tone without changing the substance.

Understanding the benefits of both ChatGPT and a financial expert is important. ChatGPT is equipped to extract data that can prove to help build a financial strategy. However, it’s the financial planning expert’s responsibility to interpret and apply the information most appropriately.

An expert asks questions that consider your investment risk tolerance. In other words, the planner can ask questions and identify if you are an emotional spender or someone who takes calculated risks, or if you are a high-risk/high-reward investor. However, an advisor also recognizes that unforeseen incidents can occur.

How does ChatGPT consider those variables? In building the strategy, it is limited in its capacity to protect or minimize potential loss. You are exposed to a holistic approach to wealth accumulation over time. That assurance is personal, offered with empathy and compassion. It is given to you, the person in mind.

Working with a financial planning expert offers a layer of protection that ChatGPT does not offer.

A financial advisor has a fiduciary responsibility to put a client’s interests first. In other words, there is an ethical and legal obligation to provide advice that is in the client’s best interest.

By contrast, artificial intelligence is only as reliable as the data it is given. That limitation makes its guidance vulnerable to embedded biases or misinformation within the input. AI also cannot account for ethical considerations or the nuanced if-then scenarios that often shape real-world financial decisions.

As initially stated, artificial intelligence is an invaluable resource that has the potential of enhancing an advisor’s ability to offer comprehensive, customized financial strategies designed to help their clients accumulate wealth and gain financial freedom. It should be used as a tool to add value, not to override the experience and expertise of the financial planning expert.

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This article originally appeared on GOBankingRates.com: Financial Expert vs. ChatGPT: Who Gives Better Money Advice?