GoKawiilAI financial advice is surprisingly good — especially if you ask the right questions
People are increasingly turning to artificial intelligence for financial advice, but will following it improve their financial standing?
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“Half of Americans say they are using AI to get financial advice, but we know very little about what kind of advice they’re getting and whether they’re acting on it,” said Taha Choukhmane, an assistant professor of finance at the MIT Sloan School of Management and co-author of a new paper that measures and analyzes the quality of financial advice given by large language models.
Research by Choukhmane and co-authors showed that following AI recommendations can result in sizable saving buffers for virtually all individuals above age 30.
AI consistently advised people to save during their working years, draw down savings in retirement, invest heavily in diversified stock funds, and reduce stock exposure after age 45. However, AI chatbots were less successful in adjusting to shocks like unemployment, and they allowed portfolios to drift rather than actively rebalancing them.
The quality of financial advice given by LLMs improved when the researchers introduced more structured prompts, but the AI still often generated too little active portfolio rebalancing.
How the study was conducted
The researchers built a model reflecting how people’s incomes, jobs, investments, and taxes typically evolve over their lives, which gave them a benchmark for what “good” financial decisions look like.
Then they asked a sample of 1,000 adults to write their own prompts seeking spending and investing advice from GPT-5.2, GPT-5.6, or Gemini 3 Flash.
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