For many Americans, the arrival of W-2s and 1099 forms signifies one thing: tax season. With looming deadlines and the complexity of deductions, credits and exemptions, taxpayers will turn to online resources for guidance. Now, tools like ChatGPT, Claude, Google’s Gemini and Meta/Facebook’s Llama promise quick answers to questions like, “What does my 1099-NEC mean?” or “Can I claim this expense as a deduction?”
Can these AI chatbots point you in the right direction for filing accurately and making informed financial decisions?
Our recent study set out to answer that question by testing four popular AI chatbots — OpenAI’s ChatGPT, Google’s Gemini, Meta/Facebook’s Llama and Anthropic’s Claude — on 550 questions about 35 common personal finance topics. The topics ranged from calculating monthly interest on a savings account to interpreting complex tax scenarios.
On average, the models scored 70 percent accuracy with significant variations in chatbot performance. Paid models like ChatGPT and Claude consistently outperformed free versions like Meta/Facebook’s Llama, underscoring the advantages of premium, advanced systems.
While most models excel at addressing basic topics such as interest calculations and simple tax deductions, they often struggle with more complex scenarios.
Think of a college graduate learning to manage student loans or a small-business owner trying to compare retirement account options. A chatbot can quickly outline key differences between a Solo 401(k) and a SEP IRA, saving valuable research time. However, many AI models still stumble when queries become more nuanced — optimizing investment strategies for fluctuating monthly income or navigating intricate tax laws. That’s hardly surprising. Financial management often requires interpreting individualized circumstances, where the human element remains critical.
However, there’s reason for optimism. The latest versions demonstrate significant improvements, signaling a future where AI could become a reliable financial assistant that helps people achieve their desired financial future.
While privacy concerns are valid, many companies allow users to opt out of data collection, and enhancements in encryption and compliance standards are continually emerging. You can mitigate many risks by reviewing a platform’s data-use policies, using secure connection methods, and limiting the personal information you share. As these technologies evolve, tackling these issues will be essential for building greater trust and encouraging widespread adoption.
Ultimately, AI tools should supplement — not replace — professional guidance. A financial planner can leverage AI to handle calculations, risk assessments and initial research, freeing them to focus on building a personalized strategy with their clients. Similarly, everyday investors can use AI to gather quick insights before scheduling meetings with accountants or wealth advisers. By blending human expertise with AI’s data-processing capabilities, users can benefit from more efficient and informed decision-making.
AI holds significant promise for everyday finances, especially during crunch times like tax season. As these tools become more advanced, they’ll likely take on an even more significant role in helping people make sense of complex financial questions. For now, think of them as a helpful first step rather than a one-stop solution. Always confirm key details, cross-check the advice you receive, and consult a certified professional when the stakes are high. The best financial decisions often come from pairing human expertise with the speed and efficiency of AI.
