TLDR: As more Canadians, particularly younger generations, turn to AI chatbots for financial planning, experts are urging caution. While AI can assist with budgeting and goal setting, it lacks the nuanced understanding of a human advisor and poses risks regarding data privacy and potentially inaccurate or outdated advice. Users are advised to treat AI guidance as a starting point and verify information with a professional.
Canadians are increasingly leveraging artificial intelligence (AI) chatbots for various daily tasks, from meal planning to vacation itineraries, and a growing number are now incorporating AI into their financial management. However, financial experts are advising a cautious approach, emphasizing that AI-generated financial guidance should be treated as a preliminary tool rather than definitive advice.
Martin Dasko, a content creator specializing in personal finance, describes AI as a ‘personal financial assistant.’ He utilizes AI to formulate savings plans, for instance, by inputting a savings target into ChatGPT and requesting a timeline-based plan. Dasko notes the convenience, stating, ‘It’ll give you a monthly plan to follow. It’s all in one spot… You can get a table, a chart and it’s easier than ever.’ This accessibility makes AI chatbots a popular choice for many young Canadians seeking to establish budgets and define financial objectives, especially in an era of DIY investing and robo-advisors.
Despite the perceived ease, experts highlight the necessity for individuals to possess a foundational understanding of their finances to ensure the AI produces relevant and accurate outputs. Katelyn Aitcheson, a financial planner with Sun Life, explains, ‘There is a little bit of work that the individual needs to do to be confident and accurate in the numbers that it produces.’ This includes knowing the difference between fixed and variable expenses, recurring versus one-time costs, and one’s net worth.
Aitcheson recounted an instance where a client used a generative AI chatbot to decide between life insurance and mortgage insurance for a new home. While the AI provided a high-level overview, it missed crucial nuances, such as the option for additional income replacement coverage or the ability to reduce personal life insurance coverage over time. Nevertheless, Aitcheson acknowledges the power of AI chatbots in quickly providing basic information and ‘cutting through the noise,’ potentially offering a fairly accurate breakdown for financial goals like retirement savings or student loan repayment.
Dasko suggests common prompts like ‘Help me create a monthly budget with (insert) income and (insert) expenses,’ followed by customization requests such as ‘Where can I cut $100 to start saving more?’ or ‘Help me save $10,000 in the next year.’
However, significant concerns remain, particularly regarding data security and the accuracy of information. Jane Arnett, a cybersecurity evangelist at Check Point, warns against inputting sensitive personal information into AI systems. ‘Stop and think: ‘Okay, with this that I’m putting in here, what would happen if I was giving this to someone who was trying to rob me right now?” she advises, adding, ‘Basically, assume that anything you’re putting into these systems is public information.’ Canada currently lacks specific legislation to protect AI users, making data storage and usage practices unclear.
Also Read:
- Canadian Report Reveals Doubled Generative AI Adoption Amidst Plummeting Social Media Trust
- South Africans Urged to Verify AI Chatbot Information Amid Hallucination Concerns, ChatGPT Remains Preferred Tool
Arnett also cautions that vague prompts can lead to ‘incorrect or half-baked information,’ which might be outdated or inapplicable to Canadian financial regulations. She strongly recommends verifying any AI-generated financial plan with a human financial advisor. ‘You’ll walk in knowing more and having a better and deeper conversation with your financial planner,’ she concludes. This report, authored by Ritika Dubey of The Canadian Press, was originally published on July 15, 2025.
