AI can answer your money questions, but can it understand your life?

Artificial intelligence (AI) is rapidly changing the way people interact with their money.

Consumers can ask an AI tool to explain an investment concept, compare financial products, build a basic budget or even suggest steps towards achieving a savings goal, often in seconds.

And there is real value in that.

AI can make financial information more accessible, help people take simple first steps towards better money management and give consumers greater confidence to engage with their finances.

But there is a fundamental difference between getting an answer about your money and getting advice about your life.

“AI has an important role to play in helping people access financial information and take those first steps towards becoming more financially confident. But financial planning is ultimately about much more than information. It is about understanding the person behind the numbers, the life they are building and the decisions they will face along the way,” says Lulama Mrara, Regional Manager at Old Mutual Personal Finance.

That distinction becomes particularly important as life becomes more complicated.

Getting married, having children, changing careers, starting a business, caring for ageing parents or navigating an unexpected illness or loss can all fundamentally change a person's financial priorities. The right financial decision is rarely determined by a single piece of information. It depends on context, competing priorities and, often, difficult choices.

This is where the value of a relationship with a trusted financial adviser becomes clear.

An AI tool may be able to tell someone how much they need to save for retirement based on a set of assumptions. A financial adviser can help them think through what those assumptions mean in the context of their actual lives. They can ask some questions that may not have occurred to the customer, challenge unrealistic expectations and help them weigh one financial priority against another.

“As your life changes, so do your financial priorities. A trusted adviser helps you understand what those changes mean for your broader financial plan and ensures that your strategy continues to reflect the life you are building,” says Mrara.

The value of human advice becomes even more apparent when emotions enter the picture.

“Financial decisions are rarely purely rational,” says Mrara. During periods of market volatility, economic uncertainty or personal financial pressure, people can be tempted to make decisions based on fear, anxiety or short-term thinking. An AI tool can provide information about what is happening in the market. A financial adviser can help a customer understand what it means for *their* circumstances and whether taking action is actually in their best interests.

“This is where the adviser’s role moves beyond information and into judgement.”
“Sometimes the most valuable advice is not telling someone what to do but helping them avoid doing something they may later regret. An adviser provides perspective, challenges emotional decisions and helps customers remain focused on their long-term goals,” says Mrara.

Good financial advice also looks beyond the individual.

A person's financial circumstances are shaped by the people and responsibilities around them. A decision about retirement may affect a spouse. A change in income may have implications for children or other dependants. Supporting ageing parents, managing debt or planning for a child's education can all influence how financial priorities need to be balanced.

These are the nuances that make financial planning deeply personal.

For consumers, the rise of AI should therefore not be viewed as a choice between technology and human advice. Instead, it presents an opportunity to use both for what they do best.

AI can help consumers become more informed, ask better questions and take simple steps towards improving their financial wellbeing. A skilled financial adviser can then help turn that information into a personalised strategy, taking into account the complexity, uncertainty and changing circumstances that make every person's financial journey unique.

“The future of financial advice will undoubtedly involve technology, and that is a positive development. But technology should support the relationship with the adviser, not replace it. The most valuable financial advice is still grounded in human understanding. In trust. And in accountability,” says Mrara.