You've probably asked an AI like Gemini or ChatGPT for financial advice. It's fast, it's free, and these models can process more data than any human ever could. But as we've learned, they always come with a disclaimer: "Nothing here is personal financial advice." So, why the warning? Because the stakes are high, and the advice might not be as flawless as you think.
A recent analysis by https://www.google.com/search?q=Money.com put two of the most popular AI models, ChatGPT and Gemini, to the test with 25 common personal finance questions. The results are fascinating and reveal a lot about the current state of AI and your money.
In a head-to-head comparison, Gemini 2.5 Pro came out on top with an overall grade of B+, while ChatGPT's o3 model earned a B-. While both models avoided giving reckless or entirely "hallucinated" advice, Gemini consistently provided more thorough explanations and better sourcing across all five categories tested: retirement, housing, credit, investing, and current events.
While both models are a great starting point, they have their own unique strengths and weaknesses. For example, when asked about real estate agents, ChatGPT offered a beautifully descriptive response, while Gemini provided a sharp breakdown of different loan options and their pros and cons.
For simple, foundational questions, AI models are a fantastic resource. They can explain complex terms like debt-to-income ratio (DTI), outline the basics of retirement accounts, and provide general guidelines for saving. They can give you a solid starting point for research, helping you understand core concepts without having to read a textbook.
When it comes to more complex or personal situations, the AI models fell short. For example, when asked about retirement planning, the models struggled with nuanced topics like tax strategies or how to balance risk in a portfolio. They also failed to account for personal unknowns like healthcare costs or life expectancy. This is where a human financial advisor's expertise is irreplaceable.
Despite being able to browse the web, both models struggled to provide up-to-the-minute information on timely topics. In some cases, their answers were based on reports that were several months old or referenced programs that had already ended. This is a critical weakness, as relying on outdated information for things like student loan policies or mortgage rates could lead to costly mistakes.
While AI is an incredible tool for boosting financial literacy, it's not a substitute for professional, personalized advice. The biggest takeaway from this analysis is that AI should be your research assistant, not your financial advisor. It can help you understand concepts, but it's up to you to apply that knowledge to your unique situation.
Ultimately, the best approach is to combine the power of AI with human expertise. Use AI to get a solid overview and understand the basics, then consult a qualified financial professional to get personalized advice tailored to your goals.