AI can cost you money, warn experts

Investors in Yorkshire should be wary of taking financial advice solely from AI platforms, one of the county’s leading accountancy and advisory firms has warned.

Experts from Azets, which has offices in Leeds, Bradford and York, have likened the practice to Googling health symptoms rather than going to see a doctor.

With rising taxes and a flatlining economy, investors are increasingly searching for efficient places to put their money.

And while AI is a great tool, its advice can be found wanting.

Alex Bolton, from Azets Wealth Management, said: “With tax changes coming into effect from April, it’s natural that more people are seeking information and trying to understand their options.

“Technology, including artificial intelligence, can be a helpful starting point for gathering and summarising information, and it’s a tool we use internally in that context.

“However, AI should never be relied on in isolation. When researching financial matters it’s essential to check sources carefully and ensure information is accurate and up to date.

“The quality of responses also depends heavily on how specific the questions are, and there can be limitations in the data AI tools draw from.

“For example, AI may not yet fully reflect recent UK tax changes, and it can occasionally confuse different accounting standards, such as IFRS and UK GAAP.

“There is also a risk of bias, including how investment ideas are presented, or an over-emphasis on certain markets.

“Social media influencers can make financial topics engaging, but this can sometimes encourage over-confidence in AI-generated information.

“Finally, some of the most important financial planning details are not publicly available online.

“In-depth financial planning reports, which consider an individual’s full circumstances, cannot be assessed or replaced by AI alone.”

Lewis Aldridge, a partner at the company, added: “While AI gives a good steer and can be useful for forecasting, there are real issues.

“And it’s not just within investment and wealth management, it is the same across all our service lines.

“It can be like using the internet for diagnosing health issues. It might be correct but there is a chance it’ll be wrong – especially if it isn’t carefully used.

“In due course the technology might be more reliable but at present we advise caution and that when it comes to money people should always take advice from a reputable financial professional.”

Azets has three offices in Yorkshire, in Leeds, Bradford and York, where it employs 335 people.

Visit https://www.azets.com/en-uk for more details.

 

Image caption (top of page): Alex Bolton from Azets Wealth Management