By: Robert Duquette
14 November, 2026
The use of artificial intelligence (AI) in everyday life has grown substantially in recent years. Research conducted by Pew Research Center found that the percentage of U.S. adults who reported using AI chatbots increased from 33% to 49% between 2024 and 2026, representing a relative increase of 48%.¹ The applications of these chatbots vary widely, ranging from general information searches to workplace assistance to more personal uses, such as emotional support and companionship.¹,²
The widespread adoption of these technologies shows not only the rapid advancement of AI capabilities but also the increasing comfort individuals have with incorporating them into their daily routines. Activities that may have seemed unconventional just five or ten years ago are becoming increasingly commonplace as AI continues to evolve and become more accessible.
However, as AI becomes more deeply integrated into everyday decision-making, an important distinction arises: the ability to provide information does not necessarily equate to the ability to provide meaningful, personalized guidance. This distinction becomes particularly relevant in financial advising, where decisions are influenced not only by financial knowledge but also by individual circumstances, emotions, and long-term aspirations.
Democratizing Financial Knowledge: AI's Role in Financial Literacy
Financial planners around the world are increasingly implementing AI into their workflows to improve efficiency, conduct market research, and reach more clients.³ However, financial planners are not the only ones turning to AI for assistance with financial matters. The Financial Planning Standards Board's (FPSB) 2026 Impact of AI on Financial Planning Global Research found that planners are increasingly seeing clients come to meetings with AI-generated financial information.³
Individuals can now utilize AI to learn about topics such as compound interest, portfolio diversification, budgeting, retirement accounts, and debt management. Modern chatbots have evolved beyond simple question-and-answer tools into conversational platforms that allow users to ask follow-up questions and receive explanations based on their levels of understanding.
The FPSB reported that 33% of clients use AI to receive financial education, and 25% utilize AI to compare professional advice.³ This growing use of chatbots to advance or deepen financial understanding presents an opportunity to make financial knowledge more accessible and raise the bar for financial literacy.
For example, an individual who has questions about their retirement account or how to reduce risk within their investment portfolio can now ask AI for an explanation without needing an extensive background in finance. Furthermore, 70% of financial planners surveyed by the FPSB believe AI will increase access to financial planning for underserved populations.³ This accessibility could help individuals develop a stronger understanding of financial concepts and become more engaged in their personal financial decisions.
However, greater access to financial information does not necessarily translate into better financial decisions. An overdependence on AI can present risks, particularly when individuals treat AI-generated information as personalized financial advice.
Although AI can provide valuable financial education, it is still susceptible to inaccuracies, incomplete information, and recommendations that fail to account for an individual's circumstances. The FPSB found that 21% of financial planners surveyed reported an increased need to contextualize or correct AI-generated information brought to them by clients.³
While AI has considerable potential to improve financial literacy, financial planners continue to play an important role in helping individuals interpret that information and determine how it applies to their personal circumstances.
Information Is Not Advice: Where AI Falls Short
AI can explain financial principles, but it cannot automatically determine whether general information is appropriate for a particular individual. The CFP Board conducted research that found that 80% of surveyed adults aged 25 to 64, with household incomes above $50,000, questioned the accuracy of online financial information at least once a month.⁴ Of those surveyed, 17% reported using AI tools to answer financial questions, yet only 38% of respondents felt comfortable acting on the advice provided by chatbots.⁴
Generative AI has demonstrated a remarkable ability to explain complex financial concepts and improve access to financial information. However, providing accurate information does not necessarily equate to providing appropriate financial advice.
Financial decisions are influenced by numerous factors, including an individual's financial circumstances, risk tolerance, long-term goals, and personal experiences. Although AI can incorporate these factors into its responses, the quality of its recommendations depends heavily on the accuracy and completeness of the information it receives. This creates opportunities for incomplete, inaccurate, or inappropriate financial guidance.
The CFP Board found that approximately one-third of surveyed respondents had delayed significant financial decisions because of financial misinformation encountered online.⁴
The advent of the internet, and more recently generative AI, has made financial knowledge more accessible than ever before. However, greater access to information does not necessarily eliminate the need for financial advisors who can develop comprehensive financial plans tailored to an individual's circumstances.
Beyond the technical complexities of financial planning, there is another aspect of advising that is difficult to replicate through technology: the human relationship.
Beyond the Numbers: The Human Side of Financial Advising
Imagine two clients with identical profiles: the same income, assets, liabilities, and retirement timeline. One client is comfortable taking financial risks, while the other grew up experiencing financial instability and is deeply fearful of losing money.
Even if an AI system recognizes these differences, providing an appropriate investment recommendation is only part of the challenge. A financial advisor must build trust, understand emotional concerns, and help clients remain committed to decisions that align with their goals.
Financial advising involves more than just calculations and recommendations. It requires an understanding of the individual behind the financial information.
Financial matters can be incredibly complex. However, the complexities surrounding human emotion and behavior introduce an entirely different challenge. An individual's relationship with money can be shaped by past experiences, financial hardship, current responsibilities, and other significant life events. These experiences can influence how individuals perceive financial risk, approach major decisions, and respond to uncertainty.
While AI can recognize emotional cues and generate responses that appear empathetic, there is an important distinction between communicating empathy and developing a genuine human relationship.
A financial advisor has the opportunity to build trust over time, understand a client's personal experiences, and provide reassurance during periods of financial uncertainty.
For example, during a significant market downturn, a client may understand the importance of maintaining a diversified portfolio but still feel considerable anxiety about losing their retirement savings. In times like these, an advisor's responsibility goes beyond explaining market behavior. They also need to understand the client's concerns, provide perspective, and help them make decisions that are consistent with their long-term goals.
Financial advising is not simply about identifying the most mathematically appropriate financial decision. It's about helping individuals make informed decisions they understand, feel confident in, and can maintain through changing circumstances.
Empowering Advisors, Not Replacing Them
The FPSB found that 83% of financial planners believe AI will help them better serve clients, while 75% expect it to improve the quality of advice they provide.³
While AI has demonstrated its potential to improve the computational and technical aspects of financial advising, another promising application is helping advisors develop their communication skills.⁵
An article published in Financial Planning Review presented a framework known as AI-MIFA (Artificial Intelligence-Motivational Interviewing for Financial Advisors), designed to help financial advisors strengthen their empathetic skills.⁵
The proposed framework utilizes AI to analyze transcripts of conversations between financial advisors and their clients, evaluating communication characteristics such as the use of open-ended questions, reflective listening, and the proportion of time the advisor spends speaking.⁵
The system can then provide feedback to advisors on how they can improve their communication and develop stronger relationships with their clients. Although this framework has not been entirely validated in financial advising, it presents an opportunity for AI to support the development of interpersonal skills rather than attempt to replace them.
This application highlights an important distinction in how AI can be integrated into financial advising. Rather than relying on AI to replicate the human connection, financial advisors can utilize the technology to strengthen their ability to provide personalized and empathetic services.
AI can also assist with administrative tasks, financial modeling, and research, potentially allowing advisors to dedicate more time to understanding their clients and their individual circumstances.
As AI continues to evolve, its greatest contribution to the financial advising profession may not be its ability to replace the advisor, but rather its potential to enhance the advisor's ability to serve clients.
By combining the analytical capabilities of AI with the empathy, professional judgment, and accountability of human advisors, the profession has an opportunity to improve both the efficiency and the quality of financial planning services.
The Future of Finance Is Still Human
Artificial intelligence has fundamentally changed how individuals access and interact with financial information. By making complex financial concepts more accessible, AI has the potential to empower individuals who have historically faced barriers to professional financial services.
However, financial well-being extends far beyond access to information. It requires navigating uncertainty, understanding personal values, managing emotions, and developing the confidence necessary to make consequential financial decisions.
As AI continues to evolve, the financial advising profession has an opportunity to embrace its capabilities without sacrificing the human relationships that are central to effective financial planning.
Rather than viewing AI as a replacement for financial advisors, it should be recognized as a tool that can enhance financial education, improve professional efficiency, and strengthen the services advisors provide.
The future of financial advising should not be defined by how effectively artificial intelligence can replace human advisors, but by how effectively it can empower them to better serve the people who depend on their guidance.
References
Americans and AI 2026: Chatbots, Smart Devices and Views on Impact
How People Use ChatGPT
FPSB's Impact of AI on Financial Planning Global Research 2026
In CFP Professionals We Trust: Combating Financial Misinformation in the Digital Age
Scaling Empathy: How AI Enhances Advisor Communication Skills to Promote Financial Wellness