Why You Shouldn’t Rely on AI for Your Finances
Artificial intelligence is making waves, and you might be wondering if it’s the future of finance. While AI offers some impressive tools, relying on it entirely for your financial well-being is risky.
In our latest video, we discuss why the human element remains crucial when it comes to managing your money. We explore an algorithm’s inability to factor in human emotion, the importance of understanding contextual circumstances, and the inherent risk of over-reliance on AI for complex financial decisions.
Watch and learn why consulting a human financial advisor is often the smartest strategy.
Transcript
Hi, I'm Jamie Bosse, Senior Advisor at CGN Advisors. I work with busy professionals to create personalized financial plans and investment strategies that align with their real lives and evolving goals.
With the rise of AI and robo-advisors, it is often an easy decision to let robots do the thinking for you. And for simple, straightforward financial needs, it might work just fine.
But as your net worth grows, so does the complexity of your financial life. And that's where AI falls short. That's why working with a real, trusted financial advisor—someone who knows you—is more important than ever. Here are three key reasons why AI can't replace human financial advice.
The Human Element in Financial Planning Still Matters
The human element still matters. Let's start with this. When it comes to financial planning, there's no substitute for human connection. Sure, AI can quickly crunch numbers and identify data patterns, but personal finance is intricately linked to human emotions, goals, and unexpected life events.
An algorithm is unable to comprehend human feelings—things like the emotional toll of a job loss, the unique needs of family planning for a child with special needs, or just the gut feelings that go into starting a small business.
In moments like these, you don't just need a spreadsheet. You need empathy. You need understanding. You need someone who can adjust your plan when life throws in something unexpected. And that takes a human.
Financial Advice Is About More Than Just Numbers
The next point to remember is that financial advice isn't just about the numbers. It's about what those numbers mean to you.
Since AI operates on algorithms, it doesn't understand the unease you feel about market volatility or how a murky pension situation keeps you up at night. It can't account for your desire to retire early or care for aging parents, especially if that goal doesn't fit into a standard financial model. What you get instead is financial advice that might look good on paper, but it just doesn't fit your real-life situation.
AI is also good at analyzing individual pieces, like budgeting tools or portfolio suggestions, but it doesn't see how those pieces work together. Your finances aren't siloed, and every decision you make affects something else. That broader coordination is where the real planning happens. AI can be useful, but it's not built to think holistically the way a human advisor can.
Understanding the Risks of Relying Solely on AI
Lastly, relying too heavily on AI comes with real risks. It's easy to plug in a few numbers and accept whatever the algorithm spits out, but financial markets and life in general aren't always predictable.
AI systems are based on past performance and historical patterns. That means they may not adapt well in major shifts, like new tax laws, economic changes, or unexpected life events. And without a human advisor to interpret and adjust the strategy, you're flying blind when things don't go as planned.
Simple financial situations might work for a robo-advisor, but as your wealth grows and as life gets more complicated, you deserve more than a one-size-fits-all algorithm. You deserve someone who can listen, adapt, and guide you through the complexities of real life.
That's where we come in. If you're ready to build a financial plan that fits who you are and where you want to go, let's talk.
Call our Manhattan, Kansas office at 785-340-3434 or our Rogers, Arkansas office at 479-335-1034.
Let's work together to create a financial strategy that supports the life you are building.