The Worst Financial Advice ChatGPT Gave Me — and What Experts Say To Do Instead
Written by
Brooke Barley
Edited by
Jenna Klaverweiden
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In a 2024 Experian survey, 1 in 3 respondents said they’d used generative artificial intelligence (AI) to learn about a new topic or finances, and 96% reported positive experiences. The problem is that the answers AI is giving may not always be the best. Asking for specifics about the stock market, for example, can reveal some pretty significant knowledge gaps on AI’s part.
GOBankingRates asked ChatGPT, “If I invest $10,000 in Nvidia today, how much will I have in 2045?” After gaming out several scenarios, ChatGPT answered between $38,000 and $164,000 — a very wide range. When financial experts saw this answer and how ChatGPT came to it, they had a lot to say.
Here’s what you need to watch out for if you’re asking ChatGPT for financial advice and how to avoid certain pitfalls.
Use Current Figures
One thing to remember is that ChatGPT and other models like it can’t pull live prices or current market conditions, which greatly impact how accurate its stock predictions will be.
“If you ask for a projection that depends on today’s stock quote, current bond yields or the exact fee schedule in your account, it will not fetch those inputs,” said Kevin Marshall, a CPA and lead contributor at Smithii Tools. “Any plan that leans on fresh numbers needs a source that updates in real time. Without that, you are working with placeholders.”
Account for Volatility
Dat Ngo, a licensed CPA and personal finance professional at Vetted Prop Firms, said ChatGPT leaves a lot to be desired when it comes to stock predictions.
When taking a look at ChatGPT’s calculations, Ngo pointed out that the AI model isn’t taking big dips or increases in the market into account. “A quick example shows the bias: if an investment falls 50% one year and rises 50% the next, the 2-year arithmetic average is 0%, but $10,000 becomes $7,500. That gap is volatility drag, and it is ignored in those figures,” he said.
Work Out Multiple Scenarios
Ngo added that ChatGPT doesn’t figure in any factors like dividend reinvestment, taxes on gains, trading costs and spreads, corporate actions, or inflation. These are a lot of things to consider that aren’t addressed in ChatGPT’s answer.
“For a single stock, a better approach is scenario work tied to fundamentals and valuation, plus a Monte Carlo using expected return and historical volatility. Present a range with probabilities, show after-tax and after-inflation numbers, and make the assumptions explicit. That gives the reader a decision tool, not a guess dressed up as math,” Ngo said.
Use ChatGPT To Distill Complex Concepts
Marshall said there are ways to use ChatGPT when it comes to finances, though.
“Use ChatGPT as a coach for understanding, not a calculator for final answers. Ask for plain language explanations. ChatGPT is an excellent explainer, not a source of precise calculations. Pair its clarity with real data, proper tools, and a process that respects taxes and risk,” he explained.
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