More people are using chatbots for money advice, experts warn of risks

In short: More people are turning to AI chatbots for personal finance help, but experts say the tools can be wrong, context-blind, and risky to rely on.

What's going on

Use of chatbots for money questions is rising in the UK. Lloyds Banking Group said 28 million UK adults used AI for personal finance advice in 2025.

A study by Fidelity International found this is most common among younger investors. It said 36% of people aged 18 to 34 used AI to support investment choices, compared with 29% of people aged 35 to 54 and 5% of people over 55.

The Financial Times report says chatbots can be useful for simple tasks like budgeting or explaining basic investing terms. But they can also give answers that sound sensible while being wrong, like a calculator that quietly uses the wrong settings.

Experts shared examples. One chatbot suggested moving to Monaco to cut tax, which was technically true but not realistic for a worker in Croydon. An accountant said he has seen AI miscalculate pension allowance limits by missing key details, which could lead to surprise tax bills. Another user asked if they should “rebalance” a portfolio (change the mix of investments) without mentioning important facts like time horizon, risk comfort, and which account type they were using, and the AI suggested selling in a way that could trigger unnecessary tax.

What to watch

The report recommends treating AI as a tool, not an authority. It suggests being very specific, cross-checking answers across multiple chatbots, and using human financial advisers for high-stakes decisions. It also warns people not to share sensitive data, since chats may be stored and used for training in the future.

Source: Financial Times