No, AI Can't Plan Your Retirement: This (Human) Investment Adviser Explains Why

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Artificial intelligence has become the talk of the town. From boardrooms to classrooms, every corner of our lives seems to be embracing new AI tools, for better or for worse.

In 2025, approximately 66% of Americans reported seeking financial advice from generative AI, according to Credit Karma. That figure rises above 80% for Millennials and Gen Z.

While sources such as ChatGPT and Copilot have proven to be valuable tools, they have also shown to provide misleading, fragmented or even false information when it comes to personal finance recommendations.

There are many perks to AI's capabilities, but I have three major issues when it comes to using AI for financial advice:

1. Inaccurate information

Despite an explosion in generative AI's capabilities over the past few years, these programs are far from perfect. Asking them to advise you on the most recent tax laws, IRA contribution limits or loan forgiveness programs may lead to receiving outdated or inaccurate information.

A recent UK study by consumer group Which? asked numerous AI tools for investing advice and found some offered tips that would specifically breach tax law. Researchers also found that if they added a flaw to their question or prompt, AI rarely caught it and would offer advice regardless.

A financial adviser can help clarify a question with an error in the premise. AI will regurgitate an answer regardless of the basis.

2. Unrealistic goals

I asked ChatGPT to share steps that would allow me to retire within the next 10 years, earlier than my original plan. A few of its ideas included:

• Saving half of my income between now and retirement
• Selling my home and moving to a new state
• Increasing my yearly income by $50,000

Even after providing extensive information about income, assets and goals, generative AI could not maintain the holistic scope of planning required for retirement planning. Many of its suggestions required drastic life changes and did not consider personal connections or desires post-retirement.

Where these programs truly fall short is in the objective vs the subjective. They can offer objective facts (when they get them right), whereas a financial adviser can offer subjective insights.

The economic factors that impact our finances are moving more rapidly than ever. Advisers are fluid and forward-thinking. AI can only build a puzzle with the pieces you provide at the time of your question, which leaves the picture incomplete.

Which brings us to its greatest flaw:

3. No personal connection

Every retirement plan ever drafted has needed to evolve. Life changes, and so will your wealth, health, family dynamics and personal goals. It's in those moments that a personal connection with a trusted adviser can provide comfort and relief.

Much like a trusted friend or family member you would go to for advice, an adviser knows you and your story.

Artificial intelligence cannot grasp the emotional and interpersonal elements of your dreams and desires. Financial planning may be a numbers game, but every number is built on a relationship between you and your adviser.

At the end of the day, financial planning is about people. AI can do many things, but it cannot replace human connection and judgment.

Of the Americans who have taken financial advice from AI, more than half claimed to have made a poor financial decision as a result, according to Credit Karma.

I predict that financial advisers will need to adapt alongside this technology and integrate it, just as it is being integrated into every other aspect of our lives. The ones who fail to do so will be left behind.

However, in an increasingly digital world, it's the human component that will become more valuable by the day. Humans are social creatures who desire real connection and trusted relationships. That aspect hasn't changed over the course of human history, and it won't change with AI.

This exciting new tool is worth deploying in our lives, but it's no replacement for a relationship with a trusted professional who comes alongside you on your retirement journey.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.