Why Artificial Intelligence Cannot Replace Financial Planners

Despite the success of artificial intelligence tools in reading financial documents, performing tax analysis, and estimating how long retirement savings will last, the question of why they cannot replace financial planners has been addressed. Experts state that money decisions are largely emotional.

In a discussion with students from the Brigham Young University–Idaho Wealth Management Society, financial therapist Rick Kahler stated that artificial intelligence can be effective in creating technical plans. Citing Stanford marketing professor Baba Shiv's view that 90 to 95 percent of decisions are unconsciously shaped by emotion, Kahler emphasized that financial decisions are not made solely with logic.

Kahler noted that although artificial intelligence provides clear and confident answers, it carries no responsibility and has a margin of error in the most critical details. Stating that one should consult an expert before making major and difficult-to-reverse decisions, Kahler suggested that artificial intelligence can be used as a tool during the research phase, while human advisors should be consulted for strategy and solutions.