Why Cornish Investors Are Being Told To Question AI Advice

Thinking of asking ChatGPT what to do with your savings? A Truro-based accountancy firm has a word of warning before you act on whatever it tells you.

Azets, an international business advisory group with offices across the South West, has cautioned investors against relying solely on artificial intelligence platforms for financial advice. The firm compared the practice to using Google to diagnose health problems instead of visiting a doctor.

With rising taxes and a flatlining economy, more people are looking for efficient places to put their money. And while AI tools are growing in popularity, the firm says the advice they offer can be flawed.

A useful starting point, but not the full picture

Alex Bolton, from Azets Wealth Management, said the appetite for financial information has grown following recent tax changes.

“With the tax changes coming into effect from April, it’s natural that more people are seeking information and trying to understand their options,” he said.

“Technology, including artificial intelligence, can be a helpful starting point for gathering and summarising information, and it’s a tool we use internally in that context.”

But Alex warned that AI should not be treated as a standalone source.

“AI should never be relied on in isolation. When researching financial matters it’s essential to check sources carefully and ensure information is accurate and up to date.”

Where AI can fall short

According to Alex, the quality of responses depends heavily on how specific the questions are, and there can be limitations in the data AI tools draw from.

“AI may not yet fully reflect recent UK tax changes, and it can occasionally confuse different accounting standards, such as IFRS and UK GAAP,” he said.

“There is also a risk of bias, including how investment ideas are presented, or an over-emphasis on certain markets.”

He also pointed to the role of social media in shaping how people view AI-generated content.

“Social media influencers can make financial topics engaging, but this can sometimes encourage over-confidence in AI-generated information.”

And some of the most important financial planning details, Alex added, are simply not available to AI tools at all.

“Some of the most important financial planning details are not publicly available online. In-depth financial planning reports, which consider an individual’s full circumstances, cannot be assessed or replaced by AI alone.”

A wider issue across the profession

Lewis Aldridge, a Partner at Azets, said the issue extends well beyond wealth management.

“While AI gives a good steer and can be useful for forecasting there are real issues. And it’s not just within investment and wealth management, it is the same across all our service lines.”

Lewis returned to the medical comparison.

“It can be like using the internet for diagnosing health issues. It might be correct but there is a chance it’ll be wrong, especially if it isn’t carefully used.”

“In due course the technology might be more reliable but at present we advise caution and that when it comes to money people should always take advice from a reputable financial professional.”

Azets has 9,000 local experts across 190 locations in eight countries, with more than 100,000 clients worldwide.