Why I think AI won’t replace skilled financial advisors.
Chatbots are designed to increase user engagement by validating your perspective.
When Claude, or chatGPT justify how you feel, it makes you happy and keeps you hooked. But this also means that chatbots can easily become an echo chamber of your deepest fears and anxieties (around money in this case)
A Stanford study found that when people ask AIs for personal advice, it justifies their choices, even if it’s harmful or flat out wrong- que the viral meme of chat validating you for infidelity In human relationships, we rely on friction.
Disagreement is how we test our beliefs and grow. When chatbots only tell you what you want to hear, it slowly chips away at your ability to handle ambiguity.
When people seek out financial advice, they are bringing emotionally driven fears that can compromise how they make decisions. A skilled financial advisor navigates fears, gently challenges their assumptions, and redirects people away from making impulsive decisions.
This is why the human element in financial planning is so important. If you bring a paranoid market/economic belief or financial fear to a chatbot, it tends to take your thoughts and spin it into a narrative that validates your anxieties. You ask it about a loophole wealth building product you saw on the internet, it will likely find a way to agree that it is right for you.
It takes you further down the rabbit hole of your own biases.
While it can be a great tool for things like administrative work and the technical side, the human relationship isn’t replaceable.
