So who’s right? It depends.
In general, AI can be a useful starting point to ask general purpose questions, to brainstorm and to troubleshoot ideas. If you’re in a rut thinking about an open-ended question, like where to go on your next vacation, it’s an easy way to get a new perspective or sort through your options. However, using AI can be risky. “Fake it till you make it” seems baked into its digital DNA, as it seems unable to say “I’m not sure” when that would clearly be the best response. That swollen sense of confidence makes for funny memes about AI stumbles, but, for people seeking advice about their finances, it can lead to real damage. In other words, don’t place your trust in AI the same way we’ve let Google Maps replace paper maps. AI can quickly get you to the doorstep of a decision, but don’t cross the threshold without the additional confirmation from expert, trustworthy sources.
Here are a few common scenarios and what helpful — and dubious — prompts might look like.
UNDERSTANDING YOUR WORKPLACE’S RETIREMENT PLANS Imagine you’re choosing what funds to invest in through your employer’s 401(k). AI can be a useful partner if you’re asking general questions, but be wary of using it to make investment decisions. For informed advice that takes into account the totality of your financial situation, work with a financial advisor.
Avoid prompts that ask AI to suggest what’s best for you, like:
• I’m uploading the investments available in my 401(k) — what are the best options?
Consider prompts that help you with general background:
• I started a new job and am filling out 401(k) paperwork. It says the default investment option is a target date fund. What are some reasons a person might consider something else?
DOING YOUR TAXES Taxes can be notoriously complex. In the thick of filing season, you might be tempted to ask for advice about your return. Leave those questions for professionals. “My AI told me it was OK” is not going to work if you’re audited.
Avoid prompts that suggest taking a specific course of action, like:
• I’ve uploaded my tax forms. Do you see any ways to avoid taxes?
Consider prompts that answer low-stakes questions, like:
• It’s almost tax time. Can you make a list of documents I should start gathering?
21
Powered by FlippingBook