Can ChatGPT Give Financial Advice? Here’s What AI Can—and Can’t—Do

By Tim Barresi, Partner & Financial Adviser at Discover Financial Partners

AI is changing the way we live and work. From voice assistants to investment apps, artificial intelligence is becoming a trusted companion in our daily routines. But when it comes to something as personal and high-stakes as your finances, can you really rely on a tool like ChatGPT?

Let’s explore what AI can do, where it falls short, and why real financial advice still needs a human touch.

AI in Finance: A Powerful Tool, But Not a Personal Adviser

At Discover Financial Partners, we’re always looking for ways to use technology to enhance the advice we give. AI tools like ChatGPT are great at explaining financial concepts, summarising market trends, and even helping you build a basic budget.

But here’s the thing: AI doesn’t know you.

It doesn’t know that Emily, a 32-year-old marketing executive, wants to take a career break to travel and needs to restructure her finances to make it happen. Or that George and Helen, nearing retirement, are trying to figure out how to downsize their home without compromising their lifestyle.

These are deeply personal decisions that require more than just data, they require understanding, empathy, and strategy.

What AI Can Do for Your Finances

AI tools like ChatGPT can be incredibly helpful for:

• Explaining financial concepts: Want to understand what franking credits are or how ETFs work? AI can break it down. 

• Budgeting help: Some apps use AI to track your spending and suggest ways to save. 

• Market summaries: Curious about how the ASX performed last quarter? AI can give you a quick snapshot. 

• Tax basics: Need a refresher on what deductions you might be eligible for? AI can point you in the right direction. 

• Superannuation guidance: AI can explain contribution caps, tax implications, and withdrawal rules.

These tools are great for building financial literacy but they’re not a substitute for personalised advice.

Where AI Falls Short

Here’s where AI hits its limits:

• No personalisation: AI doesn’t know your goals, your risk appetite, or your family situation. 

• No legal authority: In Australia, only licensed financial advisers can provide regulated advice. 

• Data limitations: AI relies on existing data, which may be outdated or incomplete.

Take Raj, for example. He came to us after using an AI tool to build an investment portfolio. It looked good on paper, but it didn’t account for his upcoming home purchase or the fact that he was about to start a family. We restructured his investments to align with his short and long-term goals and gave him peace of mind.

The Human Advantage: Questions, Empathy, and Trust

AI is only as good as the questions it’s asked. And that’s where the skill of a good financial planner shines. Our experience helps us ask the right questions—the ones that uncover what really matters to you and your future.

AI can be useful because it’s unemotional and objective, which is helpful when fear or greed might tempt someone to make a poor decision. But financial advice isn’t just about logic it’s about life. It’s about navigating uncertainty, making trade-offs, and staying the course when things get tough. At Discover, we use a structured framework for advice that’s not reactive or short-term. We help clients stick to their plan, even when markets are volatile. And while AI might give the same answer every time, we bring empathy, trust, and human insight to help clients understand why tough decisions are often the right ones.

We often say: if you were flying a plane, would you want AI in the captain’s seat? When it comes to managing your wealth, the same principle applies. AI can assist but you want a human at the helm.

The Missing 93%: Why AI Can’t Read Between the Lines

While AI can process numbers and generate answers with impressive speed, it lacks something fundamental to human connection: the ability to interpret non-verbal cues.

Research* on communication shows that only a small fraction of meaning just 7% comes from the actual words we use. The rest is conveyed through tone of voice (38%) and body language (55%). That means over 90% of how we communicate is non-verbal something AI simply can’t perceive or respond to.

This matters in financial advice. When you sit down with a real adviser, we’re not just listening to what you say we’re paying attention to how you say it. We notice the pause before you answer a question about retirement, the nervous laugh when discussing debt, or the spark in your eyes when you talk about your dreams for the future.

These subtle signals help us understand what’s really going on beneath the surface. They guide us to ask better questions, offer reassurance when needed, and tailor our advice not just to your financial situation, but to your emotional state and life goals. AI can’t do that. It can’t sense hesitation, excitement, or concern. But a human adviser can—and that makes all the difference.

Real Advice, Real People, Real Results

Let me share a few more stories that show why human connection matters in financial advice.

Anna, a single mum and small business owner, was overwhelmed trying to manage her cash flow and plan for her daughter’s education. She’d tried using budgeting apps and AI tools, but they didn’t help her prioritise or plan. When we met, it wasn’t just about the numbers—we could see the stress in her posture and hear the uncertainty in her voice. That emotional insight helped us slow things down, ask the right questions, and build a strategy that gave her clarity, control, and confidence.

Then there’s Tom and Rachel, a couple in their 40s who were unsure whether to invest in property or boost their super. AI gave them generic pros and cons. But when we sat down together, we noticed how animated they became when talking about their dream of early retirement and travel. That spark told us what really mattered to them. We used that insight—something no algorithm could detect—to craft a tailored financial roadmap based on their income, tax position, and long-term goals. Today, they’re building wealth with purpose.

Can ChatGPT Give Financial Advice? And Should You Trust AI with Your Finances?

Use it as a tool, not a replacement.

AI can help you learn, explore, and ask better questions. But when it comes to making big decisions like buying property, planning for retirement, or protecting your family, there’s no substitute for expert, human advice.

So Can ChatGPT Give Financial Advice? At Discover Financial Partners, we believe in blending the best of both worlds: smart technology and even smarter people.

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*Source: Mehrabian, A. (1972). Nonverbal Communication. New Brunswick: Aldine Transaction.

This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances.