This week, OpenAI become the world's most valuable startup, hitting a staggering $500 billion valuation, surpassing SpaceX and setting a new benchmark for what startups can become.
At the same time, the AI spending boom is pushing major tech firms deeper into debt as they scramble to stay competitive in the arms race for artificial intelligence supremacy.
Why? Because AI adoption isn't slowing down. From boardrooms to living rooms, more people are turning to AI tools — not just to boost productivity, but to make real-life decisions, including financial ones.
A recent survey found that nearly 1 in 5 Americans lost over $100 after following financial advice from an AI chatbot. That number jumps to 27% among Gen Z investors — a group already navigating first-time investing decisions, crypto curiosity, and social-media-fueled financial FOMO.
The same study also highlighted that 22% of Americans followed medical advice from AI that was later proven wrong.
It's a reminder that while advice from AI chatbots is free — sometimes, that's exactly what it's worth.
Where Advisors Add Value
About half (54%) find current GenAI solutions like ChatGPT to be trustworthy, down from 66% in December. And yet, 61% of respondents have actively followed advice from an AI tool in the past 30 days in at least one area of professional expertise (personal finance, medical, legal, etc.). In other words, a solid majority have recently put AI recommendations into practice, underscoring AI's influence on real-life decisions.
This growing trust in AI is not necessarily a threat — it's a cue. A cue that clients, especially younger ones, want quick, understandable advice. And they're seeking it wherever they can get it.
That's an opportunity for advisors to lean into their human edge:
- Context matters: AI doesn't know a client's full financial picture — you do
- Follow-up questions: When someone asks, "What's the best investment right now?" AI gives an answer, while advisors ask follow-up questions for more insights
- Policy change: AI may not always reflect new laws or deadlines
- Emotions: AI doesn't see fear, greed, or financial anxiety — you can
- AI Flaws: A chatbot may seem appealing, but as the data shows, the cost of bad advice can be far greater and ends up doing more harm than good.
You don't have to be anti-AI. But you can be pro-client.
Use this moment to highlight the difference between information and insight — between asking a chatbot a question, and having a conversation with someone who actually listens.
Because when it comes to financial decisions, even small missteps can carry big costs. AI might seem cheaper, quicker, or smarter — but it can't replace the insight, nuance, and foresight a good advisor brings to the table. That's not just a service. It's protection.
Good advice isn't just about getting an answer. It's about getting the right one.
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