When AI gives you financial advice, it's time to worry
We've all been there. You're on the phone to your bank, cinema, or energy provider, navigating a maze of recorded options. "Press 1 for... Press 2 for..." You say "yes" there’s a pause, and then it says "Sorry, I didn’t hear that." You say "yes" again, louder this time. Eventually, you're practically shouting at your phone. It's maddening!
But while the wrong cinema time is annoying, it's fixable. But what if AI got something wrong that affected your entire financial future?
This could become a reality.
The rise of the DIY investor - and the risks that come with it
There's a temptation, particularly among younger investors, to go it alone. There are platforms that make it look deceptively simple - just pick your funds, click invest, and watch your money grow. Our previous piece on the perils of DIY investing outlined what can go wrong when real people try to navigate something as complex as pensions without expert support. It's rarely smooth sailing.
Now there's a new version of this: asking an AI chatbot to do the work instead.
We put it to the test. We asked ChatGPT: "What's the best way to invest £70,000?"
And – on the face of it - it gave a pretty sensible answer. It covered emergency cash buffers, ISAs, pensions, global index funds. It rattled off a range of recommended platforms to use.
But there was something key it didn’t do…
It didn't ask you a single question first. It didn't ask whether you have dependents, whether you're renting or own your home, whether you want to retire at 55 or 75, whether your values mean you wouldn't touch certain industries with a bargepole, or whether that £70,000 is your entire safety net or just a slice of a bigger picture.
It told you how much volatility you could "tolerate" - without stopping to check whether you actually know the answer to that. (Hint: most people don't until the market falls 30% and their stomach does something unpleasant.)
It's a bit like being handed a map of London when you asked for directions to a specific address. Technically informative, but not actually helpful.
The Del Boy problem
Sam has the best analogy for this: AI is a bit like Del Boy from Only Fools and Horses. It sounds completely convincing - it uses all the right words and exudes confidence. But it genuinely doesn't always know what it's talking about - it's just very good at stringing words together plausibly (no offence to Del Boy, we love him!).
This matters a lot when the stakes are high. If ChatGPT gets a film recommendation wrong, you waste two hours. If it misunderstands your values and suggests funds that don't align with your ethical commitments, or gives advice that doesn't account for your particular tax situation, or misreads the question entirely - you could waste years of investment growth, or end up somewhere you never wanted to be.
Also AI has no skin in the game. You do.
The finfluencer problem - and the voice you can't trust
It's not just AI chatbots. Social media is awash with self-styled financial experts on YouTube and TikTok, sharing tips that may or may not be relevant to your situation, may or may not be accurate, and are almost certainly not FCA-regulated.
There's also something more sinister going on that's worth being aware of. Fraudsters are now using AI voice-cloning technology to impersonate trusted figures - including financial advisers - to trick clients into transferring funds or handing over sensitive information.
As few as three seconds of recorded speech is enough to create a convincing replica of someone's voice. A report by Parmenion found that 25% of UK consumers encountered deepfake scam calls in just the fourth quarter of 2024 - and of those targeted, 40% unfortunately fell for it.
So what can be done? Here are 5 ways to protect yourself online:
If in doubt, ask if it's a real person - and notice how they answer. An AI or a fraudster using AI will often deflect, give a vague non-answer, or try to redefine what ‘real’ means. A real person will just say yes and probably laugh. (Laughing is a very good sign!)
Set a safe passphrase - one simple way to protect yourself is to have a safe phrase in place with trusted family and friends that only you would know. If someone claims to be your son, daughter, (or financial adviser) and can't produce it, hang up.
Never authorise anything financial from a phone call alone - whether that's a transfer, a withdrawal, or sharing account details. We would never ask you to do this unsolicited. Verify through a separate channel instead, for example, by calling them back on a number you already have.
Be careful what you share online - voice clones can be built from social media videos, TikTok posts etc. The less audio of you that's publicly available, the harder you are to impersonate.
Be sceptical of investment content on YouTube, TikTok, and social media - if someone's promising exceptional returns, urging you to act quickly, or isn't clearly regulated by the FCA, treat it as you would any unsolicited sales call. Which is to say: hang up.
So, where does this leave AI?
AI can be useful. It can help you get a basic sense of your options, understand financial jargon, or do a first-pass calculation. But it is not a replacement for advice that's built around you - your life, your plans, your values, your actual risk appetite, and your specific financial picture.
Getting your finances wrong isn't like getting a redelivery slot wrong, or being put through to the wrong department. The consequences compound. And unlike a missed parcel, you can't just rebook.
That's what we're here for - real people, real conversations, no "I’m sorry, I didn't catch that”.
Give us a call - we promise to answer!
Please note: The value of investments can go down as well as up and you may get back less than you originally invested. Past performance is not a guide to future returns.
The information in this blog was correct as of 18 May 2026.