{"id":287259,"date":"2026-07-08T13:44:00","date_gmt":"2026-07-08T17:44:00","guid":{"rendered":"https:\/\/news-you-need.com\/index.php\/2026\/07\/08\/nobody-licensed-ai-to-give-financial-advice\/"},"modified":"2026-07-08T14:00:13","modified_gmt":"2026-07-08T18:00:13","slug":"nobody-licensed-ai-to-give-financial-advice","status":"publish","type":"post","link":"https:\/\/news-you-need.com\/index.php\/2026\/07\/08\/nobody-licensed-ai-to-give-financial-advice\/","title":{"rendered":"Nobody Licensed AI to Give Financial Advice"},"content":{"rendered":"<p><a href=\"https:\/\/www.pymnts.com\/news\/artificial-intelligence\/2026\/nobody-licensed-ai-to-give-financial-advice\/\">Nobody Licensed AI to Give Financial Advice<\/a><\/p>\n<p><a href=\"https:\/\/www.pymnts.com\/news\/artificial-intelligence\/2026\/nobody-licensed-ai-to-give-financial-advice\/\">https:\/\/www.pymnts.com\/news\/artificial-intelligence\/2026\/nobody-licensed-ai-to-give-financial-advice\/<\/a><\/p>\n<p>Publish Date: <a href=\"publish_date]\">2026-07-08 13:44:00<\/a><\/p>\n<p>Source Domain: <a href=\"www.pymnts.com\">www.pymnts.com<\/a><\/p>\n<p>Financial regulation was built around a specific relationship: a licensed adviser who owes the client a duty of care, carries professional indemnity insurance and answers to a regulator if something goes wrong. General-purpose artificial intelligence (AI) models carry none of those obligations. They are not authorized to give financial advice.<\/p>\n<p>PYMNTS Intelligence found that 62% of Gen Z consumers in the U.S. are open to using AI for \u201cwhat if\u201d financial planning scenarios. PYMNTS Intelligence also found that 39% of U.S. consumers have already used AI for at least one payment-related activity in the last three months.<\/p>\n<p>The U.K.\u2019s Financial Conduct Authority\u2019s Mills Review found that more than a quarter of U.K. consumers trust ChatGPT, Claude or Gemini for financial advice, with limited awareness that the consumer protections covering licensed advisers do not extend to them.<\/p>\n<p>The scale of the gap is specific. Lloyds Banking Group\u2019s Consumer Digital Index found that 56% of U.K. adults, roughly 28 million people, used AI for financial questions over the preceding 12 months, IT Pro reported.<\/p>\n<h2><strong>AI Has No Fiduciary Duty and No Obligation to Get It Right<\/strong><\/h2>\n<p>That gap in accountability has real consequences. According to a PYMNTS report, an MIT expert identified the absence of fiduciary duty as a significant structural limitation: the model optimizes for a plausible answer, not the client\u2019s financial outcome. When a licensed adviser gives bad advice, the client has a formal route to redress. When an AI model gives bad advice, the client has the advice.<\/p>\n<p>The Guardian reported that ChatGPT and Microsoft\u2019s Copilot told users they could invest 25,000 pounds ($33,403) in an ISA. The actual limit is 20,000 pounds ($26,724), and following that advice would breach HMRC rules. ChatGPT also incorrectly told users that travel insurance was mandatory for most EU trips, The Guardian said.<\/p>\n<p>The FCA\u2019s executive director Sheldon Mills, who authored the Mills Review, noted that&#8230;<\/p>\n<p><a href=\"https:\/\/www.pymnts.com\/news\/artificial-intelligence\/2026\/nobody-licensed-ai-to-give-financial-advice\/\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nobody Licensed AI to Give Financial Advice https:\/\/www.pymnts.com\/news\/artificial-intelligence\/2026\/nobody-licensed-ai-to-give-financial-advice\/ Publish Date: 2026-07-08 13:44:00 Source Domain: www.pymnts.com&#8230;<\/p>\n","protected":false},"author":1,"featured_media":287260,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.pymnts.com\/wp-content\/uploads\/2026\/07\/AI-financial-advice.jpeg","fifu_image_alt":"","footnotes":""},"categories":[14],"tags":[30],"class_list":["post-287259","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","tag-breach"],"_links":{"self":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/287259"}],"collection":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/comments?post=287259"}],"version-history":[{"count":1,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/287259\/revisions"}],"predecessor-version":[{"id":287261,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/287259\/revisions\/287261"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/media\/287260"}],"wp:attachment":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/media?parent=287259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/categories?post=287259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/tags?post=287259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}