Investors are more likely to trust financial planning advice generated by artificial intelligence than the myriad of opinions on social media.
A recent survey by the CFP Board found that 71% of respondents said they have little or no trust in advice the find on social media platforms but are more divided on the validity of advice created by generative AI.
While more than half (51%) have little or no trust in advice from platforms such as Chat GPT and Google Bard, 31% say they are comfortable to act on the advice without verification from another source.
Even when they have checked the information found with a financial planning professional, only around half are comfortable acting on the advice from generative AI (52%) or social media (46%).
"Over the last decade, unverified financial advice on platforms like TikTok and Instagram has surged," said CFP Board CEO Kevin R. Keller. "Investors must be cautious about advice from 'finfluencers' on these channels. The emergence of AI tools like ChatGPT and Bard has made verifying advice even more challenging. Against this backdrop, we believe that the holistic professional advice of a certified financial planner professional is more important than ever."
Often when technology is involved, younger generations are more likely to have a positive opinion than older ones.
However, the CFP Board research found that 62% of those over 45 said they were “very satisfied” with the experience of getting financial planning advice from AI compared to 38% of those under 45. Both groups would be cautious about relying solely on this advice (10% of under-45s and 15% of over-45s).
Men are generally more hopeful about the impact that generative AI could have on the financial planning profession, with women more likely to be skeptical. However, both sexes believe that the technology will supplement advice from financial advisors in the next three to five years.
"Social media and generative AI have promise as tools for sharing information, but they can never be a substitute for the expertise and client knowledge of a financial planner," Keller said. "Verifying data with a reputable third-party source, such as a CFP professional, is the best way for consumers to ensure that they stay on track to meet their financial goals."
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