Artificial intelligence tools like ChatGPT have exploded in popularity in recent years. From drafting emails to answering trivia questions, AI software has quickly become a go-to resource for many Canadians.

But as these tools become more sophisticated, some consumers are turning to them for something far more complex: financial planning advice. While the appeal of instant, free answers is obvious, relying on AI for money decisions can be risky—and in some cases, dangerous to your financial wellbeing.

Let me give you an example. I put the following question into ChatGPT to see what it would tell me to do: “I am 55 years old and plan to retire in five more years. I have a mortgage balance of $400,000 on my $1 million dollar home and only have $300,000 saved for retirement in my RRSP with no other savings. I just inherited $400,000 and am wondering what I should do with that money to get myself in the best shape for retirement?”

The response I got:

“Given you only have $300,000 saved for retirement and five years to go, you need to grow your investments but also reduce mortgage risk.

Here’s a practical mix:

1. Contribute $200,000 to RRSP (if you have the contribution room). That could create a large tax refund. Apply that refund........

© Castanet