More New Zealanders are turning to AI tools for help with money decisions, but experts warn the technology comes with significant risks around accuracy, bias, data privacy, and what happens when things go wrong.
More New Zealanders are asking AI tools like ChatGPT and Claude for help with everything from basic budgeting to investment decisions. The appeal is obvious: free, instant, available at any hour. But financial experts say there are several important reasons to be careful about what you ask — and what you do with the answers.
University of Auckland law professor Alexandra Andhov, who chairs the institution's law and technology research, has looked closely at how AI systems handle financial queries. Her verdict on accuracy: patchy at best. Her test runs found that AI tools tend to recommend well-known big tech companies and recent market leaders — generic picks, not tailored to a New Zealand investor's specific situation, risk tolerance, or available options. A test run for a podcast found ChatGPT recommended investing in Rakon, a company that was about to delist from the NZX — described by Kernel founder Rupert Carlyon as "about the worst option" available on the market.
The bias problem
Andhov said bias was "100 percent" present in AI financial advice. Free versions of tools like ChatGPT display advertisements, raising the question of whether specific queries push users toward specific products. "If you ask very specific questions, whether it will turn you towards those specific products — that is a concern," she said.
The FMA takes a technology-neutral stance — the same legal obligations apply to advice whether it's delivered by a person or a machine. But that creates a grey area: if an AI tool gives bad advice, the accountability structures that exist for licensed advisers do not automatically apply.
What happens to your data
When you tell an AI tool how much you earn, what you invest, or what you owe, that information may leave New Zealand and head to servers overseas. "Can this be misused? Potentially, right?" Andhov said. "If you don't know where the data is heading afterwards, I think this might be a bit of a concern."
Terms and conditions for major AI tools explicitly state they provide general information only and users should verify everything themselves — a disclaimer that shifts responsibility back to you. Andhov said it was worth watching whether new AI-specific financial products being developed tried to contract out of liability entirely if the advice turned out to be wrong.
What the FMA says
The Financial Markets Authority acknowledged AI had made financial information more accessible and had potential to improve access to advice. But its guidance for consumers mirrors the cautious approach: verify anything an AI tool tells you, and understand that a chatbot is not a substitute for a licensed financial adviser who is accountable under New Zealand law.
This article is for general information only and is not personalised financial advice. Seek advice from a licensed financial adviser (registered on the FSPR) for guidance specific to your situation.