The Use of Generative AI to Provide Financial Advice: Opportunities and Risks examines how generative AI is reshaping financial advice.

The opportunities are significant. Operating at near-zero marginal cost, AI advisers can extend high-quality financial guidance beyond traditional account minimums and geographic constraints—expanding access to long-term planning for underserved individuals. As adoption grows, however, so do the risks. The report highlights key vulnerabilities, including hallucinations at scale, model bias, privacy concerns, and conflicts of interest driven by misaligned incentives. It emphasizes that effective AI in financial advice depends not just on outputs, but on strong underlying processes—robust data governance, rigorous model validation, clear use-case boundaries, and ongoing oversight. It also reinforces that existing regulatory frameworks already apply, and firms remain accountable for AI-driven outcomes.