4 in 10 Americans Would Trust AI With Retirement Planning — Should You?
Artificial intelligence can be a useful tool for planning a grocery list or a vacation — but should you use it to plan your retirement?
According to a new TIAA Institute report, many Americans are willing to. Asked if they were open to using AI tools to help with money management and planning for the future, 40% said yes — significantly higher than the percentage that are currently working with a professional advisor (24%).
Start Your Adventure: Is Your Degree AI-Proof? 4 Career Moves To Make Amid Meta and Microsoft Layoffs
Grow Rich: 14 Subtly Genius Things All Wealthy People Do With Their Money — That You Should Do, Too
While the experts we spoke with said AI can make retirement planning more accessible and affordable, they stressed it shouldn't replace human judgment when it comes to major financial decisions. Instead, AI is best used as a tool to support — not substitute for — professional advice.
Here's what Americans should know before relying on AI to help shape their retirement strategy.
How AI Can Help With Retirement Planning
While AI tools shouldn't be thought of as a replacement for professional advice, there are some pros to using this technology for long-term financial planning.
"AI tools can make financial planning more accessible and affordable, offering projections, spending analysis and scenario modeling," said Surya Kolluri, head of the TIAA Institute. "They can process large amounts of data quickly, identify patterns in spending behavior and help people stay engaged with their financial health."
Where AI Tools Can Fall Short
Still, it's important to note that AI has its limits.
"AI tools lack the human judgment required to navigate complex, emotionally charged financial decisions such as how to plan around a health diagnosis, a divorce or a sudden inheritance," Kolluri said. "They also cannot fully account for individual values, family dynamics or qualitative life goals that shape what retirement actually needs to look like."
Overreliance on AI without human oversight carries real risk, he said.
How To Use AI Responsibly for Financial Planning
The question isn't whether AI can help with retirement planning; it's how much responsibility people should hand over to it.
"AI tools work best as a complement to, not a replacement for, qualified human financial advice," Kolluri said. "Americans should use them to increase their engagement and awareness, while relying on a licensed financial professional for consequential decisions."
It's also important to understand the limitations of any AI tool being used, including what data it draws on and how current or accurate its knowledge is.
"Treating AI as a starting point rather than a final answer is the most responsible approach," Kolluri said.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: