Be Careful Trusting AI With Financial Advice

Two reports released in 2026, the TD AI Insights Report and Saturn’s Artificial Authority Study offer some insights into how consumers are using AI for financial decisions, and how often those AI models fail to give accurate guidance.

TD AI Insights Report: People increasingly use AI, but they don't trust it yet

According to TD’s 2026 AI Insights Report, AI is “quickly becoming an expectation” for consumers, with usage rising sharply across all age groups and more than half of those surveyed using AI to help them manage their finances.

The report notes that trust in AI is “situational and must be earned”. While AI use has risen sharply, trust in AI is growing at a slower pace. When consumers do trust AI, it is usually in the context of low-stakes every-day decisions. Although people do consult AI for financial advice, they generally prefer to use it for quick questions or basic financial literacy, still relying on humans for complex or high‑stakes decisions.

These findings seem to indicate that people want AI to support, not replace, expert judgment.

This aligns with what we see: people appreciate tools that help them understand concepts, but they want a real person guiding decisions that affect their future. That said, there is a growing skepticism of professional advice when it doesn’t align with the quick answers generated by AI. In other words, Licensed Insolvency Trustees sometimes have to work harder to earn the trust of those who book meetings with us due to misinformation dispensed by AI.

This can be frustrating for LITs and other professionals in the financial industry, but in our view it is overall a positive development as long as people don’t solely rely on information generated by AI. Speaking with informed consumers who ask tough questions is almost always going to result in a more beneficial conversation and a better ultimate understanding by the consumer. And in the case of an insolvency filing, it is very important that the individual fully understands their options and the consequences of the option they choose before they file, as it generally isn’t possible to simply reverse the decision later.

Saturn’s Artificial Authority Study: AI gets financial advice wrong most of the time

AI and technology consultant, Saturn, produced a report which claims to be “the most in-depth benchmarking exercise to-date examining the quality of financial advice that Al models are delivering to UK consumers”. They report having tested 18 AI models (including ChatGPT, Claude, Gemini, Grok, and Copilot) using 121 financial questions, each asked five times, resulting in more than 10,000 answers.

The results were as follows:

• AI models made mistakes 57% of the time.
• Even the paid models were only accurate 51% of the time, while free models failed 63% of the time
• For more complex questions, the accuracy dropped to 12%. Some free models even failed 99% of the time on hard questions
• When reviewing examples of wrong answers, the report notes that in the worst examples, an individual relying on the advice could have lost large sums of money with life-changing consequences.
• Errors included quoting incorrect figures, using out-of-date rules, and omitting crucial considerations. Some even hallucinated information.

One of the problems with AI’s wrong responses is the confident tone with which answers are given. Any good professional knows that “I don’t know” is sometimes the best answer, such as when a topic is outside their area of expertise or an absolute answer is simply not possible in the context of the situation. There is inherent danger giving black and white answers to some questions, but the Saturn report points out that AI tends to deliver wrong answers with “the same confident, authoritative tone as correct ones”, making it difficult for consumers to identify grey areas or facts that require further investigation. 

AI is a great tool for summarizing internet research that could otherwise take hours to compile. It can provide a basic explanation of concepts, but, at least in its current state, AI should not be relied upon it to guide major financial decisions.

For people facing debt stress including garnishment, CRA collections, or court action, the potential outcomes of relying on incorrect advice are significant. For example:

• Missing a priority debt warning can lead to eviction
• Misunderstanding tax rules can trigger penalties
• Incorrect budgeting advice can worsen financial strain
• Wrong assumptions about credit can affect future borrowing abilities
• Misinterpreting insolvency options can delay needed relief, lead to increased stress, and eliminate otherwise viable options

And unlike regulated financial advice, the Saturn report notes that “there is no formal route for consumers to seek redress when things go wrong” with AI-generated guidance.

The Bottom Line: AI Is a Tool, Not a Financial Advisor

Both TD and Saturn agree: AI can support learning, but human expertise still matters.

AI can be helpful for:

• Defintions
• General Explanations
• Simple Comparisons
• Educational Content

AI is probably not reliable for:

• Debt prioritization
• Insolvency decisions
• Tax rules
• Pension questions
• Mortgage planning
• High-stakes financial choices

At Charla Smith & Company, we understand how critical it is to get accurate, personalized, regulated advice, especially when someone is facing financial stress. AI can help you understand some of the basics, but it can get a lot of things wrong. Sometimes, the information AI generates is close enough to correct that it sounds very authoritative, but still faulty enough to produce catastrophic results if relied on too heavily. See our related blogs for examples of this:

Don't Trust ChatGpt For Advice About Bankruptcy

Don't Trust ChatGpt For Advice About Consumer Proposals

Ultimately asking AI about options for dealing with your debt cannot replace the reassurance of speaking to a Licensed Insolvency Trustee who understands your situation and can guide you safely based on fully accurate knowledge and experience with complex situations.

Charla Smith & Company Ltd. Is a Calgary-based Licensed Insolvency Trustee, here to provide advice for dealing with your debt based on a review of your unique situation. Reach out for a free consultation.

Disclaimer: This publication was initially drafted with the help of AI but has been reviewed and heavily revised by an actual Licensed Insolvency Trustee based on their knowledge, experience, and independent research. This publication provides general information and should be seen as broad guidance only. The information contained herein cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon this information without obtaining specific professional advice relating to your particular circumstances. Charla Smith & Company Ltd. does not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.