Resources/Planning Best Practices

APRIL 2025

Smart Tech, Smarter Decisions: What AI Can and Can’t Do for Your Financial Plan

Justin Hearty

AI can crunch numbers and simulate scenarios, but it can’t sense stress, hear uncertainty in your voice or truly understand what keeps you up at night. Before relying on tech to guide big financial decisions, make sure the human side of your story is part of the plan.

Over the past decade, technology has transformed nearly every industry—and financial planning is no exception. The buzzword of the moment? Artificial Intelligence (AI). From budgeting apps and investment platforms to AI-powered chatbots like ChatGPT and Microsoft CoPilot, new tools are reshaping how we approach money and plan for the future.

This growing accessibility is a big win—financial planning is more approachable than ever. But while these tools offer helpful insights and convenience, they can’t replace the kind of context, judgment, and empathy that comes with working one-on-one with a financial professional.

That said, the goal isn’t to replace expert advice—it’s to enhance it. When used wisely, AI can support the planning process, surface new ideas, and give both clients and advisors more time to focus on what matters most. AI isn’t eliminating financial planners. In fact, it’s raising the bar for what great financial planning can look like—bringing more clarity, efficiency, and depth to the conversations that really matter.

Let’s take a look at what AI is doing well, where it’s falling short, and how to think about these tools as part of a smarter, more intentional financial journey.

The Benefits: More Access, Less Time

One of the biggest changes AI has brought to the world of finance is access. In the past, financial planning sometimes felt out of reach—whether due to cost, complexity, or not knowing where to begin. AI is helping to change that by making financial information more available to anyone looking to better understand their money.

Here’s how:

Budgeting Tools: AI-driven apps can analyze your spending patterns, flag concerning trends, and suggest ways to save—all in real time.
Conversational AI (ChatGPT, CoPilot, etc.): Tools like these make it easy to ask financial questions in plain language and receive instant responses. Want to know the difference between a Roth and Traditional IRA? Or how compound interest works? These tools are helping more people get comfortable with financial concepts.
Time Savings: By automating routine tasks—like categorizing expenses, syncing bank data, or generating simple reports—AI frees up valuable time for both clients and financial professionals.
Accessibility and Inclusivity: By simplifying complex concepts and reducing jargon, AI makes financial literacy more approachable for people from all walks of life—especially first-time investors or younger generations who may not have access to traditional advice.

In short, AI is helping people get organized faster, ask better questions, and feel more empowered about their financial lives. And when paired with professional advice, it leads to better, more informed planning conversations.

The Flip Side: AI Has Limits

As much as AI has improved efficiency and access, it’s important to remember that algorithms aren’t human. They can’t fully understand your emotions, your life story, or the deeper “why” behind your decisions—and that matters more than most people think.

Let’s break it down:

AI Can Miss the Nuance
Life isn’t always logical—and your finances reflect that.

Maybe you’re retiring early to care for a loved one.
Maybe you’re juggling support for kids and aging parents.
Or maybe you’re feeling burned out and considering a big lifestyle change.

AI might run the numbers. But it won’t ask, “What really matters most to you right now?” That’s where a good planner brings meaningful value.

Accuracy Isn’t Guaranteed
Even the best AI tools are only as good as the information they’re given. If your financial picture includes irregular income, real estate, a business, or non-traditional goals, AI may miss critical pieces of context—or oversimplify them.

It also can’t always anticipate life’s curveballs. Market volatility, career shifts, tax law changes—these things require human judgment and flexibility, not just data.

What About Privacy and Data?

AI tools are powerful—but only if used wisely. Many of the platforms that offer financial insights (including ChatGPT and others) are based on models that continue to learn from user inputs. That means if you’re entering personal or sensitive financial information into a public AI system, that data could be stored, analyzed, and in some cases, made accessible to train future versions of the tool.

This doesn’t mean you can’t use these tools—it just means you should avoid entering anything confidential, including account numbers, income specifics, or personal identifiers.

If you’re using a financial tool or app powered by AI, take a moment to review:

Will the data I enter be stored, shared, or used to train future models?
Some AI tools learn from user inputs, which means your information could help shape future responses – even if it’s unintentional.
Does this platform clearly explain how it collects, uses and protects my data?
Look for a privacy policy. If you can’t find one – or it’s vague – it’s best to be cautious.
Is there a chance anything I enter could become visible or accessible to others later one?
Even anonymized data can carry risk if it includes sensitive financial or personal details.

When in doubt, keep sensitive details between you and your advisor. That’s where conversations stay private—and context stays protected.

So, What Should You Do?

If you’re using AI to start exploring your financial life—great. These tools can be a powerful first step toward better understanding your money, but here’s what to keep in mind:

Use AI as a support tool: Let it help you stay organized, explore ideas, or generate scenarios, but lean on a financial advisor to turn those insights into a plan that actually fits your life.
Bring your findings to the table: A financial planner can help you put those insights into context and build a plan that aligns with your goals and values.
Ask deeper questions: Don’t settle for surface-level answers. Ask: “What’s driving this decision?” and “Does this truly reflect where I want to go?”

Because no matter how smart the software is, your life deserves a strategy built around you—not just your data.

Final Thoughts

At our firm, we’re continually evaluating how AI and emerging technologies can enhance the way we serve you—from streamlining back-office processes to improving planning tools and delivering more tailored insights. Our goal is simple: to blend smart technology with trusted advice, giving you the best of both worlds.

AI is making financial planning more accessible, more efficient, and—when used wisely—more personalized. That’s good news for everyone. It’s helping people feel more informed, ask better questions, and build confidence in their financial lives.

As the technology continues to evolve, so does the way great financial planning is delivered. At its best, AI enhances the work of planners—not by replacing the human side of advice, but by sharpening it. It frees up time for deeper conversations, brings more clarity to complex decisions, and allows for strategies that are both smarter and more aligned with your life.

So yes, use the tools. Let them organize, streamline, and clarify. And when it’s time to take action—especially on decisions that shape your future—partner with someone who can bring the human lens to your financial picture.

Let’s make sure your financial plan is powered by purpose—not just algorithms.

About Strategic

Founded in 1979, Strategic is a leading investment and wealth management firm managing and advising on total client assets of over $2 billion.

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