Pension savers are being warned about the potential risks of losing money or making a mistake they cannot undo if they solely rely on AI (artificial intelligence) to answer financial questions.
Pension Bee said that while AI can be a “great tool”, its research, involving asking common questions people may have about retirement savings, indicated that some answers could leave out details that may be crucial.
It found particular issues around questions about significant life events and those where the user’s location was unclear.
Becky O’Connor, head of pensions at PensionBee, said: “An answer can contain correct information and still leave you with the wrong impression because something important is missing.
“This is one of the biggest risks with using AI for financial questions.
“Consumers need to look beyond whether an answer sounds right and check whether it gives them the full picture before acting.
“AI can be a great tool when used alongside trusted sources such as MoneyHelper, gov.uk, HMRC or your pension provider.”
Ms O’Connor also cautioned that AI may not always recognise that the person asking the question may be in vulnerable circumstances.
She said: “Someone in a genuinely difficult financial situation may turn to an AI chatbot because they don’t want or can’t afford to pay for advice.
“That’s exactly when recognising the wider circumstances matters most.”
PensionBee suggested that people should understand when using AI that a clear, confident answer may still be incomplete or wrong.
It also suggested UK users make their location clear and include relevant details about their circumstances, such as their age, pension type or whether they are going through a major life event.
People should also keep personal details, such as passwords and account numbers, to themselves, it said.
It also suggested asking neutral questions, checking the sources used and verifying important information, such as as tax, deadlines withdrawals, before acting.
PensionBee suggested that people also speak to organisations such as their pension provider, MoneyHelper or Citizens Advice.
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