A few months ago, a client asked if her college-aged son could join the first part of our meeting. He was in his early 20s, entrepreneurial, and had been doing a lot of his own research using AI tools. He came in with good questions about gold, the devaluing dollar, and why the market kept rising despite so much economic uncertainty.
At some point during the conversation, he mentioned that he had been talking to AI for months but wanted to finally sit down with a real financial advisor.
I’ve been thinking about that ever since. More and more people are turning to AI as a first stop for financial questions, and I understand why. But I also think it’s a good idea to talk honestly about what AI can and can’t do when it comes to managing your financial life.
AI Has a Real Place in Financial Learning
AI tools are genuinely useful for financial education. They’re available any time, they explain concepts accessibly, and they’re a reasonable place to start building knowledge before meeting with an advisor. I understand why people use them, and I’m not here to dismiss that.
The question I hear more often now is whether they can go further—whether they can replace a financial advisor. My honest answer is that it depends on what you want out of the relationship. If you are a dedicated do-it-yourselfer, you could theoretically train an AI tool by constantly uploading your data, verifying its accuracy, and managing the communication between the tech and your CPA. But for most people, the whole point of having an advisor is to offload the heavy lifting to a professional so they can focus on their lives, not on managing software.
Where the Work Gets Personal
Financial planning is not a general problem. It is your specific situation: your income, tax picture, family circumstances, and timeline. Those details shape every decision, and no AI tool has access to them the way an advisor who has worked with you over time does.
Take rebalancing as an example. When markets perform well for an extended period, equities tend to grow beyond their target allocations and fixed income falls below. Adjusting that looks straightforward on the surface, but in practice, there is considerably more to it.
Before I place a single trade, I run the proposed rebalance to see what it will look like. Then I go back through each client’s financial plan and look for thresholds I don’t want to cross; a capital gains figure that could trigger a change in Medicare premiums, for instance, or income that would push someone into a higher tax bracket. I also think about where we are in the calendar year and whether it makes more sense to shift some of the activity to the following year. Then I may call the client and walk them through what I’m seeing or talk with them about changes during an upcoming call or meeting. After that, I may reach out to their CPA to make sure tax planning is appropriate and/or tax estimates factor in unusual portfolio activity. During client calls or meetings I will explain what happened and what it means for their tax planning in the coming months.
Describing what rebalancing is and carrying it out strategically for a specific client are two entirely different things. The latter takes knowledge of a person’s situation that builds over time.
The same applies to the coordination that runs through most complex financial lives. I am in regular contact with my clients’ CPAs and estate planning attorneys. We share information proactively and adjust when things change. That kind of ongoing collaboration depends on real working relationships, and those take time to develop.
The Role of Judgment
One of my clients came to me recently after retiring. She was new to me, anxious about market volatility, and uncertain whether her portfolio was positioned appropriately for where she was in life. I walked her through what a significant market decline would mean for her in dollar terms, tied to her specific accounts. I explained how her fixed-income holdings would likely behave in that environment and what our strategy would be. I also told her not to watch the market every day. Daily monitoring tends to increase anxiety and often leads to reactive decisions that work against a long-term plan. That conversation was just as important as the allocation review itself.
An AI tool can provide general guidance on thinking about market volatility. It cannot look at this particular woman’s situation and shape a response that accounts for her newly retired status, her temperament, her history with her previous advisor, and everything specific to her portfolio. That kind of responsiveness comes from knowing someone over time.
Technology and Human Advisors Work Together
I want to be clear that experienced advisors use technology too. Portfolio management software and financial planning tools are a regular part of how this work gets done, and I rely on them. The question was never whether to use technology. It’s understanding what it can do on its own and where a human advisor adds something different. For the young man in my meeting, AI had been a genuinely useful starting point. When his questions became specific to his family’s situation, he knew he wanted a different kind of conversation.
Let’s Have a Real Conversation
If you’re curious about how personalized financial planning works in practice, I’d be glad to talk.
You can reach me by calling (317) 469-2455, emailing ssteel@deerfieldfa.com, or scheduling time through my online calendar. You’re also welcome to read what clients have shared about their experience working with me here.
Frequently Asked Questions
Can AI replace a financial advisor?
For general financial education, AI tools can be helpful. A financial advisor does something different: they work from detailed knowledge of your specific situation, coordinate with your CPA and estate planning attorney, and make recommendations shaped by everything they know about your goals, your tax situation, and your life. That kind of work requires an ongoing relationship.
What does a human financial advisor do that AI can’t?
A human advisor knows your history, your family, your tax situation, and the goals you’ve talked through together over time. They can reach out to your CPA before a tax issue becomes a problem. They can recognize when something in your life changes and adjust your plan accordingly. That combination of personal knowledge and professional coordination is what makes financial planning genuinely useful.
Is it safe to use AI for financial advice?
AI can be a useful starting point for financial research but treat it as one input among many. AI tools can get facts wrong and have no visibility into your individual situation. Tax law in particular has nuances that depend heavily on personal circumstances. For significant financial decisions, work with a qualified advisor who knows your full situation.
How do I know if I need a human financial advisor?
If you’re managing meaningful assets, expecting a significant life change (a retirement, a business sale, or an inheritance), or simply want someone who understands your complete financial situation and can work alongside your CPA and attorney, a human advisor is worth considering. The more complex your financial life, the more that relationship matters.
About Susie
Susie Steel, CFP®, is COO, Wealth Manager, and Senior Shareholder at Deerfield Financial Advisors, a fee-only wealth management firm with offices in Indianapolis and Chicago. With more than three decades of experience, she specializes in comprehensive financial planning for individuals, families, and business owners, with a focus on tax efficiency, estate planning, and multi-generational wealth.
