3 money questions experts say you should never ask AI — and 3 you should

Business Insider

26-05-2025

AI struggles with certain math questions, so asking it to calculate your taxes might go poorly.
AI can help you with budgeting and financial habits; for more complex questions, ask a human expert.
Rather than asking AI how to invest for retirement, use it to assess how on track you are now.
Haven't yet tapped into the power of artificial intelligence? Then it might be time to get on board. 71% of businesses regularly use AI for at least one function of their business, up from 65% just last year.
With AI being used for everything from customer service to diagnosing medical issues, traffic management, self-driving cars, and even fraud detection, it makes sense that the financial industry is getting on board.
But sometimes, it makes sense to consult a real, live person rather than AI when dealing with your finances. Here are three questions you should never ask AI, plus a few you should.
Don't ask: What are my estimated tax payments this year?
When working with AI, keeping it general is key, said LJ Suzuki, President of CFOshare, a company that uses Read AI to outsource finance departments for growing small businesses.
"It's OK to ask AI, 'How do estimated income taxes work for S-corporations?' but you should not ask AI, 'Please calculate my estimated income tax payments for the next year,'" he explained.
It's most useful for providing generalized feedback, he said.
"AI is great for providing broad and general advice to someone who knows nothing about a topic. If you're unsure how to estimate your income tax payments, AI can give you a great overview of the concept."
Where it falls short, ironically, are logical operations, such as math.
"Lots of people are confused by this since traditional computers are excellent at logical operations (better than humans)," he explained. "AI is different — it thinks more intuitively, which means it makes logical errors."
Don't ask: How should I invest my money?
Focus on personal questions that delve into your habits. "'Where did all my money go this month?', 'How much am I actually spending on takeout?' These honest, habit-focused questions are where AI shines," said Sam Taylor, VP of technology at Cleo, an AI financial assistant.
He noted that it's best to avoid personalized guidance on investments, loans, and other major financial decisions as of now. (For those questions, consider hiring a financial advisor.)
"There will come a day when AI can give you personalized guidance in the way of investments, loans, and more," Taylor said. "But, for now, focus on principles like how to start saving, building a budget, and where you can better your financial habits."
Don't ask: What can I do to reach my retirement goals?
Instead ask: Am I on track for my target retirement date?
Determining whether someone is on track for their target retirement date is one area in which AI shines.
Joseph Patrick Roop, financial advisor and host of the 'Retire(meant) for Living' podcast, asked an AI assistant that question, telling it, "'I'm 52 years old, have $500,000 in my 401(k), $63,000 saved in a brokerage account.'
"It really did a great job laying out my target retirement date, what I have saved, including any Social Security or pensions."
But it was missing that human element.
"As a financial advisor looking at this, there are some other ways we could help this client get to their desired income by utilizing some other tools that it didn't bring up," said Roop. "From a very novice standpoint, if you're not a financial advisor and want to know where you stand, I thought the answers were very good."
Remember, AI is still evolving
Regardless of how sophisticated AI may seem, it can't replace a human just yet, especially when it comes to finances.
"AI is still not capable enough to replace a financial strategist," Suzuki explained. But if you're looking for general advice on financial best practices, AI can help.
"AI is great at generating ideas and financial best practices," Suzuki said. "For example, if you are having trouble collecting payment from customers, you can ask, 'List the best practices in collecting payments in B2B sales.' I guarantee you'll find some useful ideas you'd never previously considered."