AI-Powered Tools Offer Help With Financial Planning. Should You Bite?

AI tools are everywhere, offering to help consumers with everyday needs from household shopping to cooking that night’s dinner. 

Personal finance platforms are no different: Thirty-seven percent of Americans reported using AI to help manage their finances, according to a survey performed by Ipsos for the bank BMO. Among those who said they used AI, the most common cases were for learning about personal finance topics, creating or updating a budget, and building savings.

This comes as traditional financial advice remains out of reach for many beginners and people with smaller portfolios, since certified financial planners often charge thousands per year or require sizable minimum assets.

“Wealth management has traditionally been seen as a high barrier-to-entry space,” said Gloria Garcia Cisneros, a certified financial professional at wealth management firm LourdMurray. “For those just starting out or with more basic needs, AI tools and robo-advisors can provide more affordable options and at least help them get started.”

While AI-powered financial tools can lower the cost of entry to financial guidance, they also come with limitations that can determine whether they’re a smart substitute for traditional planning. 

CNBC Select breaks down some of our picks for AI-powered finance apps, what they can do, and when you still need a human financial planner.

CNBC Select previously recommended Betterment and Monarch for their automated investing and budgeting tools. We also like Cleo for its AI chatbot, which provides spending insights and money management advice.

Betterment’s portfolio rebalancing and goal‑based planning features use algorithms and automation driven by large math models, along with human oversight, to manage portfolios. For automated investing accounts, there is no minimum balance requirement. However, there is an annual fee of 0.25% for accounts between $0 and $1 million, 0.15% for accounts between $1 million and $2 million and 10% on accounts of $2 million or more.

Monarch’s AI features include an AI assistant that answers user questions about financial concerns, insights like financial trends and a weekly recap that summarizes your major money shifts. Users can access these services for either $14.99 per month or $99 per year.

Cleo offers a dedicated AI assistant that helps users with day-to-day money management and behavioral coaching, such as categorizing spending and alerts when users are close to their budget limits.

Cleo’s free plan gives you access to its AI chatbot, sets up basic budgets, tracks and categorizes your spending, and provides insights on your cash flow. The premium plans, which range from $2.99 and $14.99 per month, offer additional tools such as cash advances, access to your credit score, and automated savings with higher interest rates than the free tier.

Fernanda Dobal, product director of AI and chat at Cleo, said many users come to AI-powered tools to ask questions, and are then served additional information or services. 

“What really sets AI tech apart is proactively surfacing insights that might be helpful rather than waiting for user input — we are proactive versus reactive,” Dobal said. 

The global robo advisor market—which encompasses platforms that provide automated financial planning with little human intervention—was valued at $1.4 trillion in 2024 and is projected to reach $3.2 trillion by 2033, according to a release by Market Research Intellect.

Analysts cite affordability and accessibility — including lower fees, minimal account minimums, and 24/7 digital access — as key factors fueling adoption. Another element plays an equally important role: the perception of reduced judgment.

“A lot of people report talking to an AI feeling more comfortable than talking to a financial expert, because they come without much knowledge and feel the AI won’t judge them,” Dobal said.

AI-powered tools are not entirely without a human touch, however. Many platforms say their technology is supported by human teams who monitor, correct, and manage AI responses.

“A lot of the answers here are developed and guided not just by large language models, but also by certified financial planners and therapists, accredited financial coaches, insurance experts and more,” said Rachel Lawrence, a certified financial planner and head of advice and planning at Monarch. 

“They’re reviewing answers and making sure our AI tool is on track,” Lawrence said. “We’re actively correcting things we don’t believe are good answers.”

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every CD review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of savings products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best one-year CDs.

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