Trusting Bots With Your Wallet? The Risky Side Of AI Finance

 Artificial intelligence chatbots are rapidly entering the financial advisory space, offering instant insights and portfolio suggestions. In India, where nearly 13.5 percent of global ChatGPT users are based, many investors are experimenting with AI-generated advice. However, financial experts caution that these tools are not substitutes for licensed advisors and may expose users to hidden risks.  

Key Highlights  

• AI chatbots lack fiduciary responsibility and operate outside SEBI regulations  
• Recommendations often rely on data popularity rather than personalized risk assessment  
• Financial advisors report clients bringing AI-generated suggestions that may not align with long-term goals  
• Potential for misinformation and compliance issues if investors act solely on chatbot advice  
• Allianz Risk Barometer 2026 ranks AI as the second biggest global business risk, reflecting growing concerns  

Future Outlook  
While AI chatbots can serve as educational tools, experts stress the importance of human oversight in financial decision-making. As regulators evaluate the role of AI in finance, investors are urged to treat chatbot insights as supplementary rather than definitive guidance.  

Sources: ScanX News, Allianz Risk Barometer 2026, Goldman Sachs Outlooks