Don’t share sensitive information
“Generative AI platforms aren’t regulated like banks, and they don’t offer the same protections around how data is stored, used or shared,” warns Chris Powell, head of deposits and customer engagement at Citizens Bank. Keep sensitive information such as your Social Security number, driver’s license, bank account details, medical records or usernames and passwords out of conversations with chatbot.
“When people input personal or nonpublic financial information such as income details, account balances or tax data,” Powell says, “they may be exposing themselves to privacy, fraud or identity-theft risks.”
Don’t rely on chatbots to make big investment decisions
Chatbots aren’t stockbrokers, wealth managers or financial planners, so proceed with caution. “If it tells you to go buy four or five stocks and that data is incorrect, that could be really disastrous,” especially if you invest a large chunk of your retirement savings, Cummings says. Major investment decisions should be part of a carefully crafted financial plan, not rendered on advice that you received with a few clicks on your computer.
Don’t take everything they say at face value
Oftentimes, AI “sounds warm and confident, which makes it easy to trust,” says Jonathan Kolmetz, a certified financial planner and president of Oaks Wealth Management in Houston. But chatbots also don’t typically express uncertainty. The onus is on you to view its answers through an objective lens.
Don’t disregard human professionals
AI chatbots can be helpful for certain financial planning tasks, but they “can’t replace empathy, connection or accountability,” says Ramiro Marmolejo, founder of Financial Rubrics, based in . Nor can they replace the expertise of a financial adviser, accountant, retirement plan administrator or other financial professional.
“We should feel somewhat fortunate to be living in this time where we get to experience seismic change in technology and get comfortable with it,” Gilham says, “but we still need those trusted relationships.”