Artificial intelligence has quickly become part of everyday life.
Whether it’s ChatGPT, Claude, Gemini or another AI platform, more Australians are using these tools to research everything from holiday destinations to investment ideas.
I use AI myself because it’s an excellent tool for learning, researching and organising information.
But there’s an important difference between using AI to become more informed and using AI to make financial decisions for you.
Understanding where AI adds value—and where it doesn’t—can help you make better financial decisions.
AI Is an Excellent Research Tool
One of AI’s biggest strengths is making complex topics easier to understand.
If you’ve ever wondered what compound interest is, how superannuation works, what the difference is between an industry fund and a retail fund, or how the Age Pension assets test works, AI can often explain these concepts in plain English within seconds.
It can also summarise lengthy reports, compare ideas and suggest topics you may not have considered.
For education, it’s an outstanding resource.
Where AI Starts to Struggle
Financial advice isn’t simply about answering questions.
It’s about understanding your complete financial picture.
When I meet with a client, we don’t just discuss investments.
We talk about retirement goals, family circumstances, income needs, debts, superannuation, tax, Centrelink eligibility, estate planning and attitude towards investment risk.
AI doesn’t automatically know any of this.
Even if you provide some information, it usually won’t ask the detailed follow-up questions an experienced financial adviser would.
That’s where personalised advice becomes valuable.
Be Careful With Investment Recommendations
One area where I’d encourage caution is using AI to ask questions such as: What shares should I buy? What’s the best ETF? Should I move all my super? Should I invest in property instead?
AI doesn’t know what’s appropriate for your circumstances.
It may also generate responses based on incomplete, outdated or inaccurate information.
Like any technology, AI occasionally gets things wrong.
That’s why major financial decisions should never rely solely on a chatbot’s response.
Privacy Still Matters
Many people don’t think twice about the information they type into AI platforms.
Before sharing anything, remember that some AI services may retain or use information depending on their privacy settings.
As a general rule, avoid entering sensitive personal information such as bank account details, tax file numbers, passwords, investment account numbers, identification documents and personal financial records.
The less personal information you provide, the better.
Ask Better Questions, Get Better Answers
One of the biggest mistakes people make is asking vague questions.
For example: “Should I retire?”
That question is almost impossible for AI to answer well.
A much better approach would be: “Explain the factors someone aged 62 should consider before retiring in Australia, including superannuation, tax and Age Pension eligibility.”
The quality of the answer usually improves dramatically when the question is more specific.
AI Doesn’t Replace Personal Advice
I believe AI will become an increasingly valuable tool for helping Australians improve their financial knowledge.
In many ways, that’s a positive development.
Better-informed clients often ask better questions and make better long-term decisions.
Where AI reaches its limit is applying general information to your individual circumstances.
Financial advice isn’t simply about knowledge. It’s about judgement.
It’s about weighing competing priorities, identifying opportunities, avoiding costly mistakes and helping you make decisions that fit your goals.
That’s something AI can’t fully replace.
Use AI as Part of Your Financial Toolkit
My advice is simple.
Use AI to learn financial concepts, understand investment terminology, research different strategies and prepare questions before meeting your adviser.
Then verify what you’ve learnt and discuss how it applies to your own circumstances before making significant financial decisions.
Used this way, AI becomes a powerful tool—not a replacement for sound financial planning.
Have Questions About Your Financial Future?
If you’ve been using AI to learn more about retirement, superannuation or investing but would like personalised advice, I’d be happy to help.
As a financial adviser in Geelong, I work with individuals and families throughout Geelong and the Greater Geelong region to develop practical financial strategies tailored to their personal goals.
AI can help you understand your options. Professional advice can help you choose the one that’s right for you.
