OECD warns of risks from growing use of AI financial advice

The OECD has warned that the growing use of AI for financial advice could expose consumers to misleading information, biased recommendations and privacy risks, even as it makes financial guidance more accessible.

More than one-third of people across OECD countries used AI tools in 2025. Consumers are increasingly turning to AI for budgeting, debt management, investing, retirement planning and understanding financial products, with some also using it to ask sensitive financial questions they might hesitate to raise with a human adviser.

The OECD said AI can simplify complex financial documents, personalise financial education and help consumers compare products. However, AI systems may hallucinate, reproduce biases or generate commercially influenced recommendations without users fully recognising those limitations.

Conversational AI can also blur the distinction between general financial information and regulated professional advice. Consumers may act on recommendations that fail to reflect their financial circumstances, objectives or tolerance for risk.

The report stresses that AI cannot replace financial literacy. Consumers should question AI-generated answers, verify important information and carefully assess requests for personal or financial data. The OECD also urged policymakers to promote digital and financial literacy, maintain human oversight and ensure AI tools are grounded in reliable information, noting that people with limited digital skills or internet access may require additional support.

Why does it matter?

As AI becomes an increasingly common source of financial guidance, inaccurate, biased or commercially influenced recommendations could have direct consequences for consumers’ savings, debt, investments and long-term financial wellbeing. Unlike many other AI applications, errors in financial advice can translate into immediate economic harm.

The report also highlights the growing need for AI governance that combines transparency, human oversight and financial literacy. Ensuring that consumers understand both the capabilities and limitations of AI will become increasingly important as AI tools play a larger role in everyday financial decision-making.

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