You’ve probably heard about “ChatGPT” by now. AI models and solutions are challenging our traditional financial advice model. Aside from ChatGPT, some firms are adopting their versions of “robo-advisors.” ChatGPT for finance is even described as an industry-defying moment. Today’s generative AIs can change how we work, but how will they change the finance industry?
To test out ChatGPT, we asked the AI platform our question: “Should I hire a financial advisor or ask my questions to ChatGPT?” Its answer is as follows:
As an AI language model, I can provide general information and insights on various topics, including finance. However, I cannot offer personalized financial advice or make specific investment recommendations for your unique financial situation.
In general, hiring a financial advisor can be a wise decision, especially if you have complex financial needs or goals. A financial advisor can offer tailored advice and help you create a comprehensive financial plan that aligns with your specific circumstances.
When choosing a financial advisor, it’s essential to look for someone who is qualified, experienced, and trustworthy. You may also want to consider their fee structure and ensure that their services align with your budget.
Ultimately, whether you choose to consult a financial advisor or ask questions to ChatGPT, it’s essential to educate yourself and make informed decisions about your finances.
Pros of ChatGPT over a traditional advisor:
- It weights information without human bias (the investors or the advisors).
- It does not involve emotions, which can be haphazard and seemingly illogical.
- It does not include intuition.
- It takes more data into account, with an encyclopedia of knowledge at its disposal.
- Information is updated in real-time.
- Access may be better. With a traditional advisor, you are bound by their time.
Cons of ChatGPT over a traditional advisor:
- It may “play it safe” with canned answers.
- It can miss critical contexts that a human mind can be tuned into.
- It may miss minute pattern nuances that a human mind can be aware of.
- It lacks emotional intelligence (for example, picking up on emotional cues), which can be valuable for decision-making.
With ChatGPT in its infant stage, continuous improvements must be made to provide users with high-quality data and information. Meanwhile, financial professionals can prime themselves for success in an AI world, taking advantage of the technology to assist their work. At the same time, they use unique human skills to provide needed nuance and context. Human financial advisors can find newfound competition with AI language expert ChatGPT. This healthy competition can be a motivating factor for advisors to improve their areas of expertise.