Best practices for using AI in financial planning

A man and a woman looking at financial documents. - Comerica — A man and a woman looking at financial documents. – Comerica

Financial planning has constantly evolved with technology. Now, the rise of artificial intelligence marks a more disruptive leap. It has already started to change how plans are built and reviewed.

Today’s AI tools aim to synthesize sets of data, make recommendations based on spending patterns, automate long-term projections and summarize estate plans. These capabilities have the potential to save time and improve clarity. But like any tool, AI has limitations, especially for a planning process that involves emotions, intent and family dynamics.

In its 2025 Year-End Planning Guide, Comerica explores planning tools that incorporate AI-driven features to see where they help and where they fall short.

Where AI Adds Value in Financial Planning

AI’s value in financial planning comes down to efficiency: organizing information, highlighting potential issues and giving advisors a head start. It can’t replace judgment or experience, and it shouldn’t tell you what decisions to make. But it can make the decision process more focused and informed.

Today’s AI solutions are well-suited to:

Summarize complex documents. AI can extract key provisions from estate planning documents (wills, trusts and powers of attorney), LLC and partnership agreements, and other legal documents. This helps planners and clients quickly identify structure, beneficiaries and distribution terms. Note: AI summaries should always be reviewed. AI can misread or fabricate details (“hallucinations”), especially in dense legal language.
Diagram estate plans. Some tools generate flowcharts that map how assets move, distribution terms and which entities are involved, making complex plans easier to explain and understand.
Spot certain inconsistencies or gaps. AI can identify missing or mismatched details, such as outdated trustees, inconsistent beneficiary designations or missing documents like powers of attorney.

Used appropriately, these tools can reduce administrative work and make plan reviews more efficient. That leaves more room for strategy, communication and the kind of decision making that requires human context.

Limits of AI in Financial Planning

Financial planning is an analytical process, but it’s also a personal one. And, without guardrails, AI represents a significant risk when it misses on either of these fronts.

A key risk involves accuracy. When AI gets the information wrong, it can lead to misleading summaries, overlooked provisions or flawed diagrams. For example, when a planner recently asked both ChatGPT and Microsoft Copilot for information on 529 plans and the estate tax exemption, neither response was correct. In one instance, items from the new tax law were omitted; in the other, AI provided the 2026 estate tax exemption amount when it should have given the 2025 amount.

Equally important, AI lacks emotional intelligence. It can’t capture the intent behind decisions or navigate family dynamics, yet these qualitative factors are often as important as the financial details themselves.

That’s why AI should be treated as a support tool. Every output still needs a human review, especially when the goal is clarity, intent and peace of mind.

Security and Confidentiality: Keeping Data Protected

Financial planning documents include some of an individual’s most sensitive personal and financial information. Here’s a sample of what they often include:

Social Security numbers and dates of birth
Account numbers and balances
Real estate holdings and business interests

In the wrong hands, this information could lead to serious exposure. Whether it’s identity theft, financial fraud or unintended access to asset details, even one misstep, like uploading documents into a public AI model, can create lasting consequences.

Even major AI platforms can introduce unintended exposure. For example, OpenAI ran a short-lived experiment that caused some shared ChatGPT conversations to be indexed by Google, making private user inputs publicly searchable, TechCrunch reported. While the feature required manual sharing, it highlighted how quickly sensitive information can spread if safeguards aren’t clear.

How to Use AI Responsibly in Financial Planning

Like any tool, AI is most helpful when used with intention and safety measures. It can help surface questions and speed up certain tasks, but the direction of your plan should always come from human expertise and judgment.

Here are additional best practices to follow, whether you’re a client exploring new platforms or a professional integrating AI into your process:

Choose platforms built for financial and legal contexts. Look for closed-system tools that are designed for financial planning with clear data protections and professional-grade compliance standards.
Never enter sensitive or identifiable data into public tools. Avoid inputting Social Security numbers, account details or full documents into AI tools that aren’t specifically built for secure planning.
Stay focused on your goals and values. AI may offer suggestions or shortcuts, but your financial plan should always reflect what matters most to you.

A financial planner also can help you explore how AI tools can support your goals without compromising the clarity, intent or security of your plan.

This story was produced by Comerica and reviewed and distributed by Stacker.

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