Can AI Give Me Debt Advice?

According to Exploding Topics, ChatGPT currently has 2.8 billion monthly users, Gemini has 450 million and Copilot has 30 million. ChatGPT’s creator, OpenAI, says people of all ages are using it to make daily work tasks quicker, including writing and coding. But many are wondering, can AI give me debt advice?

Well, it’s not just everyday tasks people use it for – recent statistics do indeed show a shift towards budgeting tips and money help. So, let’s explore how AI (Artificial Intelligence) works, the pros and cons, and whether it’s something you can trust when it comes to money advice.

Can AI Give Me Debt Advice: Key Statistics 

According to the comparison website, Finder:

• 65% of those aged 18-28 used AI for money help.
• 19% of users said making a personal budget was their primary goal.
• 13.7% of users said they used AI for debt advice.

Can AI Give Automated Financial Advice?

In theory, yes. Generative AI (e.g. Gemini, Copilot, etc.) can give automated financial advice. According to Finder, 40% of people are already using AI for this reason, and a further 25% would consider it. But this doesn’t mean you shouldn’t be cautious (we’ll get onto the risks later!).

However, as of 4th November 2025, OpenAI has now ‘restricted’ ChatGPT from giving medical, legal and financial advice. It will still be able to explain general concepts, but should not provide advice.

Why are people turning to AI for financial advice?

Finder’s research concluded that budgeting help was the most popular reason for turning to AI, with 18.7% of people using it to make spending plans. Other common requests included advice on:

• Starting or managing a side hustle (18.3%)
• Improving a credit score (16.8%)
• Saving (16.8%)
• Investing (16.4%)
• Cryptocurrency (15.1%)
• Tax returns (14.1%)
• Pensions (14%)
• Debt (13.7%)
• Mortgages (12.6%)

How does generative AI work?

Experts in generative AI say the more you put in, the more you get out. In other words, if you give the chatbot as much information as possible, it is more likely to give you a useful answer. Here’s how it works:

1. Start by asking a question (Never share sensitive financial information, e.g. bank details)
2. The chatbot will respond based on everything it has ‘read’ during its ‘training’, or for more recent information, it will search the internet.
3. You can ask follow-up questions if you need more information.

Edward Morris (owner of AI consultancy, Enigmatica) suggests using the following structure:

• Role: E.g. “You are my personal money mentor”
• Context: E.g. Your age, salary, your budgeting goal, etc.
• Tasks: E.g. “Analyse my situation and give me 3 steps to achieve my goal”.
• Framework: E.g. “Show me what happens if I save £X amount a month compared to £X amount”.

The Pros & Cons of AI Debt Advice

Generative AI is handy for making repetitive tasks instant and automatic. But getting debt advice from an unregulated platform can come with serious risks.

The Pros of Automated Debt Advice:

• Convenient: The convenience of AI is what’s making it so popular at the moment – you can now get answers to complicated questions in seconds. But there is a risk those answers may not be correct, or specific enough for your situation. Did you know? Our online tool can give you tailored debt advice and create a spending plan for you in just 10-15 minutes!
• Free to use: Generative AI models, like ChatGPT, Gemini and Copilot, are all free to use with a standard/baseline account. (Our online tool is also free to use!)
• No judgement: One of the main reasons people avoid debt advisors is because they feel embarrassed about their situation. AI takes the emotion out of getting money advice, as you aren’t talking to a real person. But could this take away the deeper understanding a professional would have?

The Cons of Automated Debt Advice:

• Information is not always correct: AI is not perfect, it can (and does) get things wrong. If it doesn’t know the answer to something, it can “hallucinate” and fill in the gaps incorrectly (often presenting incorrect information confidently as fact), or use outdated sources. E.g. ChatGPT is only trained with information up to 30th September 2024, so it has to search the internet for anything more recent.
• Security risks: To get personalised debt advice, AI tools will need to access sensitive financial data. But you must be careful with the amount of information you share with AI bots, as this makes your chats a big target for cybercriminals. On the other hand, our online tool complies with strict data protection regulations and can give you personalised debt advice in minutes.
• Lacks understanding: AI does not have the same detailed understanding of debts that regulated advisors do, and would not ask the correct follow-up questions a professional would know to ask. This could mean you’re more likely to get the wrong advice. 
• Lacks human emotion: An experienced advisor can sense your level of stress or anxiety around debt and provide empathetic advice that takes your individual priorities and goals into account. This is impossible for AI.
• Potential for bias: Because generative AI, ChatGPT in particular, is trained on text sourced from the internet, it can contain biases from the people who have written these sources.
• No accountability for incorrect advice: An AI chatbot is not a regulated financial advisor, so it cannot be held responsible for the guidance it gives. If you followed its advice and something went wrong, it is unlikely the problem would be resolved. However, professional debt advisors have your best interests at heart, as their advice is highly regulated in order to protect consumers.

Wondering where to turn for debt advice?

Overall, AI can be a useful tool for saving tips or creating a monthly budget. But is it worth risking the security of your personal information or following incorrect advice? 

If you’re feeling embarrassed about your debts, our friendly and professional debt advisors offer free*, no-judgement, no-obligation debt advice that is completely confidential. You don’t even have to talk to us on the phone if you don’t want to. You can also get tailored debt advice online at any time, day or night, through our free tool.

All you have to do is enter your details to let us know more about your situation and the tool will create a monthly spending plan for you, give you personalised advice and show you your options for debt solutions on-screen, instantly. The best part is, it takes less than 15 minutes! If you’d prefer to complete the process over the phone, our advisors are more than happy to help.

If you need any extra support filling out our online tool, or if you have any questions about the advice you’ve been given, you can contact us over the phone, via email, through WhatsApp, or in a webchat.

Debt advice will not affect your credit score and our debt solution fees are transparent, with no hidden costs.

*Our advice is free, but if you sign up for a debt solution, a fee will apply for some solutions.

FAQs: Can AI Give Me Debt Advice?