New research has revealed the scale of inaccurate or misleading financial advice generated by artificial intelligence responses.
The Which? study considered AI chatbots such as ChatGPT and Copilot. It concluded that, in response to queries, they sometimes offer confusing or inappropriate tips covering areas such as tax, insurance or investments.
Specific examples include misleading tax guidance, unnecessary travel insurance suggestions and faulty advice on claiming delayed flight compensation. There have also been instances of chatbots recommending breaking HMRC ISA investment limits or offering people links to premium tax-refund companies when users requested tax refund information. The consumer organisation compared different AI services by posing 40 identical questions to a selection of competing tools.
Its findings are significant and potentially alarming, with an estimated 17% to 50% financial advice seekers using AI to some degree. People regularly turn to chatbots to get tips on everything from decent household appliance deals to using credit cards abroad. The Financial Conduct Authority regulator said that AI-generated advice is not covered by the Financial Ombudsman Service or the provisions of the Financial Services Compensation Scheme.
Leading internet providers such as Google and Microsoft are keen to emphasise the limitations of generalist AI software, and their search engines stress the importance of not using them as a substitute for professional opinion. For people seeking serious financial advice in Oswestry or Cheshire, it is worth booking an appointment with a qualified financial adviser or consultant to ensure you are not misled by inaccurate online claims.
