Artificial intelligence is everywhere right now. Whether it’s ChatGPT, Claude, Gemini, or one of the dozens of other tools flooding the market, people are using AI to answer questions, solve problems, and make decisions faster than ever before. In many ways, it’s one of the most impressive technologies we’ve seen in decades.
I use AI every single day. It helps me organize information, summarize documents, brainstorm ideas, and think through complex planning situations. There is no question that it makes me more productive. In many cases, it allows me to accomplish in minutes what would have taken hours only a few years ago.
Despite using it constantly, I still don’t trust it.
That statement surprises people. If AI is so powerful, why wouldn’t I trust it? The answer is simple. AI is not an expert. It’s an intern. A very fast intern. A very helpful intern. An incredibly confident intern. But an intern nonetheless.
The problem is that AI doesn’t present itself like an intern. It presents itself like an expert. When it gives an answer, it rarely sounds uncertain. It rarely says, “I’m not sure.” Instead, it delivers information with confidence whether it’s correct or not. That confidence is what gets people into trouble.
When it comes to your finances, confidence without accuracy can be expensive. A bad restaurant recommendation might cost you twenty dollars. A bad tax decision can cost you thousands. That’s why I believe AI is an incredible tool, but only when it’s used correctly.
Over the last several years, I’ve developed five simple rules that help me get the benefits of AI without falling into the traps. These are the same rules I follow as a financial advisor and the same rules I would recommend to anyone using AI to help with financial decisions.
The Problem With Treating AI Like an Expert
I learned this lesson while working on a project that had nothing to do with money.
Over the years, I had accumulated nearly two terabytes of photos, videos, and personal files spread across hard drives, cloud storage accounts, and old computers. It was a mess. I wanted a better system, so naturally I turned to AI for help.
At first, the suggestions seemed great. It recommended folder structures, naming conventions, and organizational systems that sounded logical. Some of the ideas were genuinely useful. Others were completely wrong.
In several cases, AI recommended file paths that didn’t exist. It suggested organizational systems that would have made finding files more difficult. It even created steps that simply wouldn’t work in the real world. Had I blindly followed everything it suggested, I could have made the situation worse instead of better.
Fortunately, I stayed involved in the process. Every recommendation was tested. Every major decision was verified. Whenever something didn’t sound right, I challenged it. More often than not, AI would admit it was wrong and provide a different answer.
That experience taught me something important. AI didn’t solve the problem. It helped me solve the problem faster. That’s a very different role.
The same thing happens with financial planning. AI can help you understand concepts, identify questions, and organize information. What it cannot do is replace judgment. The moment you forget that distinction, you’re setting yourself up for trouble.
Rule #1: AI Is an Intern, Not an Expert
The easiest way to think about AI is to imagine an intern working in your business.
An intern can gather information. They can conduct research. They can help organize projects. They can save you time. What they shouldn’t be doing is making major decisions without oversight.
The same principle applies to AI.
One of my favorite examples comes from The Office. Michael Scott is driving while following his GPS. The GPS tells him to continue straight ahead. The problem is that straight ahead leads directly into a lake. Dwight tries to stop him, but Michael keeps driving because he assumes the GPS knows something he doesn’t.
A few moments later, the car is floating in the water.
That’s exactly how many people use AI today. They assume the technology knows more than they do, so they stop thinking critically. Instead of evaluating the recommendation, they simply follow it.
The reality is that AI has no accountability. If it gives bad tax advice, it doesn’t pay the penalties. If it gives poor investment advice, it doesn’t reimburse your losses. You are still responsible for the outcome. That’s why AI should always be treated as an assistant rather than the decision maker.
Rule #2: Use AI to Learn, Not to Act
One of the best uses of AI is education.
If you want to understand how a Backdoor Roth IRA works, AI can be incredibly helpful. It can explain the process, define the terminology, and walk you through the mechanics. It can help you build a foundation of knowledge much faster than searching through dozens of websites.
The problem occurs when people move from learning to acting.
Many people ask AI questions like, “Should I do a Backdoor Roth IRA?” or “Should I convert my IRA to a Roth?” Those questions require context. They require an understanding of income, tax brackets, assets, goals, and future plans.
AI often doesn’t know any of those things.
I once spoke with someone who completed a large Roth conversion after hearing positive things about the strategy online. When he asked AI whether it was a good idea, it essentially told him yes. What AI didn’t know was that he had recently sold part of a business and was already experiencing an unusually high-income year.
The conversion pushed additional dollars into higher tax brackets and significantly reduced the value of the strategy. The issue wasn’t that Roth conversions are bad. The issue was that AI understood the strategy but failed to understand the situation.
That’s why I believe AI should be used to build understanding, not make decisions. Learn from it. Challenge it. Ask follow-up questions. But don’t assume it knows enough to make personal recommendations.
Rule #3: Verify Anything That Has Consequences
If a mistake could cost you money, verify it.
This rule sounds simple, but it’s probably the most important one on the list.
Tax laws change. Retirement plan rules change. Contribution limits change. Estate planning rules change. Financial regulations change. AI doesn’t always keep up.
In fact, one of the most common mistakes I see is AI providing outdated information. Someone asks about 401(k) contribution limits, and AI confidently provides a number from two years ago. The answer sounds reasonable. The formatting looks professional. The explanation seems logical.
It’s still wrong.
The challenge is that AI doesn’t usually tell you when it’s uncertain. It doesn’t put a giant warning label on information that may be outdated. That’s why you need to verify anything that has real-world consequences.
Before making a financial decision, cross-reference the information. Check the IRS website. Talk to your CPA. Consult your attorney. Ask your financial advisor. The few extra minutes spent verifying information can save you from making an expensive mistake later.
When money, taxes, or legal matters are involved, trust should never replace verification.
Rule #4: Use AI to Organize, Not Decide
This is where AI truly shines.
Most people don’t suffer from a lack of information. They suffer from a lack of clarity.
Financial information tends to be scattered everywhere. You may have a 401(k) at one company, an IRA somewhere else, a brokerage account at another custodian, and a collection of credit card statements, tax returns, and insurance documents spread across multiple locations.
AI is remarkably good at bringing all of that information together.
You can upload statements and ask it to summarize your holdings. You can have it calculate your asset allocation across multiple accounts. You can use it to identify spending patterns, summarize tax documents, or create a consolidated view of your finances.
Those are fantastic use cases.
Where people get into trouble is when they ask AI what they should do based on that information. Organizing information and making decisions are two completely different tasks. One is analytical. The other requires judgment.
Recently, I reviewed a retirement plan document that was nearly fifty pages long. AI did an excellent job summarizing the key provisions and helping identify areas worth further review. That saved a tremendous amount of time. What it didn’t do was determine the best course of action. That still required experience, context, and judgment.
AI is very good at creating clarity. The decisions that come from that clarity should still belong to you.
Rule #5: Use AI to Ask Better Questions
This is my favorite use of AI because it helps me think differently.
Most people use AI to get answers. I often use it to challenge my assumptions.
When I’m evaluating a complex situation, I ask questions like, “What am I missing?” “What risks haven’t I considered?” or “How would someone with a different perspective think about this?”
Those questions force me to view a problem from multiple angles.
Recently, I was helping a business owner prepare for the sale of his company. We had already identified most of the major planning issues, but I wanted another perspective. I gave AI the relevant facts and asked it what questions we should be asking.
It highlighted several areas that deserved additional attention, including how future income streams might interact after the sale. It didn’t solve the problem. It didn’t provide the answer. What it did was help uncover questions that needed to be addressed.
That’s where AI can be incredibly valuable.
The goal isn’t to let AI think for you. The goal is to use AI to think more thoroughly than you otherwise would.
The Real Opportunity AI Creates
I think a lot of people misunderstand the real value of artificial intelligence.
The value isn’t that it replaces expertise. The value is that it amplifies expertise.
A knowledgeable person using AI can become significantly more productive. They can analyze information faster, organize ideas more efficiently, and identify opportunities they might have missed. The technology becomes a force multiplier.
The danger comes when someone assumes AI eliminates the need for expertise altogether. It doesn’t. In many ways, AI actually makes critical thinking more important because it becomes easier than ever to receive confident but incorrect information.
The people who benefit most from AI won’t be the ones who blindly follow every answer. They’ll be the ones who know how to challenge it, verify it, and use it strategically.
My Final Thoughts
Artificial intelligence is one of the most powerful tools available today. Used correctly, it can help you learn faster, organize information more effectively, and think more clearly about important decisions.
Used incorrectly, it can become the most confidently wrong source of information you’ve ever encountered.
That’s why I come back to the same idea over and over again: AI is an intern, not an expert.
Use it to learn. Use it to organize. Use it to challenge your thinking. Use it to identify questions you may not have considered. But don’t hand it the keys and assume it knows where it’s going.
At least for now, good financial decisions still require human judgment. The people who get the most value from AI won’t be the ones who stop thinking. They’ll be the ones who use it to think better.