But the risks are easy to miss. General-purpose AI lacks access to proprietary financial data, sometimes misstates facts, and often leans too heavily on past patterns. Those limits matter most when markets turn volatile. Even though a portfolio of 38 stocks suggested by ChatGPT in 2023 outperformed the average UK fund by nearly 19 percentage points, experts caution against reading this as proof of long-term reliability.

The challenge goes beyond performance. AI tools are not bound by the same regulations or fiduciary responsibilities as licensed advisors. That raises questions about accountability when advice turns out to be wrong. Without clear guardrails, investors may confuse convenience with expertise.

The takeaway is balance. AI can expand access to financial guidance and lower barriers for small investors. Yet human oversight, sound judgment, and awareness of AI’s limits remain essential, especially during downturns and unpredictable events. Trusting AI too much could turn opportunity into risk.