Australians have more ways than ever to access financial advice. Whether it’s a face-to-face conversation with a qualified adviser or a quick chat with an AI tool, the options are expanding – and so are the questions about what kind of advice is actually useful.

Platforms like ChatGPT and robo-advisors promise fast, low-cost support. And for many people, they deliver. But when you’re thinking about your long-term goals – like retirement, home ownership, or leaving a legacy – can ChatGPT give financial advice?

As the Financial Review recently pointed out, AI might be able to model a forecast or recommend an ETF, but it can’t sit with you in a moment of uncertainty and ask, “What do you really want?”.

In this article, we’ll break down the core differences between digital and human advice. You’ll see where automated tools shine, where they fall short, and how human advisers can fill in the gaps. The goal isn’t to choose sides – it’s to help you work out what type of support fits your needs.

What Is Digital Financial Advice?

Digital financial advice is any guidance that comes from a technology platform rather than a person. It’s often algorithm-driven, using data you provide to generate answers or recommendations. These tools are built to make finance more accessible and can be especially helpful for people just getting started.

Common types include:

• Robo-advisors, which create and manage an investment portfolio based on your goals and risk appetite.
• AI chat tools, like ChatGPT, that provide general financial explanations and answer questions.
• Budgeting apps, which help you track spending, forecast savings, and understand where your money’s going.

You provide basic information – like your income, age, goals or debts – and the platform generates advice. Sometimes that advice is detailed and useful. Other times, it’s a starting point that still requires a lot of interpretation or follow up.

What Digital Tools Do Well

For straightforward questions or short-term goals, digital tools are a solid option. They’re designed to simplify decision-making and help you take action without overcomplicating the process.

Here’s what they’re particularly good at:

Low-cost investment management

Many robo-advisors offer diversified portfolios with low fees. You answer a few questions, and the platform recommends a mix of investments aligned to your risk level. Some will even automatically rebalance your investment portfolio when markets shift.

Budget tracking and goal setting

Apps and platforms make it easy to visualise your spending, set saving targets, and check your progress over time.

Fast, on-demand answers

If you want to understand what a P/E ratio is or how compound interest works, AI chat tools can provide a clear, instant response. They’re great at synthesising broad concepts that have been explained on the internet for years, and presenting them in one convenient place.

Consistency and automation

Digital advice is rule based. That means it will apply the same logic to everyone. This can reduce bias and make the output consistent.

The Limitations of Digital Advice

As helpful as these tools can be, there are some key limitations to keep in mind.

It can’t fully understand your life context

AI doesn’t know you’re helping a sibling with their mortgage, or that your job is insecure, or that you want to retire early and live by the coast. It uses the data you give it and nothing more.

It lacks emotional intelligence

Good financial decisions aren’t just about maths. They’re about how you feel when markets drop, or when your plans change. A digital tool can’t check in with you, reassure you, or help you weigh up competing priorities.

Answers can be generic, incomplete, or inaccurate

Digital financial tools rely on pre-set rules, limited context, and historical data to generate responses. This can be useful for simple or common questions, but often falls short when the situation is more complex, personal, or high-stakes.

A major issue with AI tools like ChatGPT is their tendency to generate incorrect or misleading information – referred to as “hallucinations”. These hallucinations aren’t just small mistakes; they can include entirely fabricated facts, misquoted data, or made-up references. One study found that, out of 115 references generated by ChatGPT, 47% were completely fabricated, while another 46% cited real sources but extracted incorrect information from them. Only 7% were both accurate and correctly referenced.

This is especially problematic when you’re relying on AI for financial guidance. Even a small factual error – such as outdated tax thresholds, incorrect superannuation rules, or a flawed calculation – can result in poor decisions. AI can also struggle with advanced questions, unique personal circumstances, or niche topics that lack enough quality information online.

And while some tools can perform basic maths well, they are known to get calculations wrong when the inputs become more complex. That means you may get an answer that seems confident and well-written but is ultimately misleading or flat-out wrong.

When it comes to your finances, even a small inaccuracy can have big consequences.

You have to know what to ask

One of the most overlooked limitations of digital advice tools is that they rely heavily on the quality of your question. If you don’t know how to phrase what you’re asking, or which details are most relevant, you may not get the answer you actually need.
This can be a real barrier for people with lower financial literacy, or for those facing more complex financial situations. You might not know what inputs are required, what assumptions the tool is making, or even what outcome you should be aiming for. In these cases, a digital tool might give a technically correct response that still misses the mark or, worse, sends you in the wrong direction entirely.

For example, you might ask a broad question like “Should I invest or save?” and receive a surface-level response, without understanding the nuances of your income, tax position, goals, or timeframe. More complex queries, like planning for intergenerational wealth, structuring a family trust, or navigating business exit strategies, often go beyond the scope of digital tools altogether.

In short: if you don’t know what to ask, or you’re not confident in your financial knowledge, it’s difficult to get reliable, relevant advice from an AI tool. That’s where a human adviser can make all the difference by asking the right questions on your behalf and guiding the conversation toward real clarity.

Real Examples: Digital vs Human Advice

Let’s look at a few common financial scenarios and compare how a digital tool might respond compared to a human financial adviser.

Retirement planning

Digital tool

ChatGPT might ask for your age, super balance, annual income, and risk profile. It will then suggest a savings target or reference a common rule of thumb (like the 25x Rule) to estimate how much you need.

Human adviser

They’ll ask deeper, more personal questions. What do you want retirement to look like? Do you plan to travel, downsize, or stay in your current home? Do you expect any inheritances or windfalls? They’ll factor in your partner’s situation, health outlook, Centrelink entitlements, and possible aged care needs, and then build a strategy tailored to your lifestyle and values. Your human adviser will understand how the latest legislation, super changes, and cost of living might impact your finances and retirement outcomes.

Paying off debt

Digital tool

Expect a breakdown of repayment strategies: the snowball method, the avalanche method, or consolidation. You’ll get definitions and pros/cons, but no questions about your behaviour, history or mindset.

Human adviser

They’ll ask what led to the debt in the first place. What’s been difficult about paying it off? Are there emotional or relational dynamics at play? Could small lifestyle changes, like switching service providers or adjusting spending habits, free up extra cash? A good adviser doesn’t just look at the debt itself but at the story behind it.

They’ll help you design a realistic repayment plan; one that’s tailored to your life and sustainable over time.

The biggest difference? They support you to make meaningful changes, and hold you accountable so you stay on track. It’s not just about clearing the debt, it’s about building new habits and confidence along the way.

Choosing between saving and investing

Digital tool

You’ll be told that it “depends on your time horizon, risk tolerance, and financial goals”. While technically correct, this often leaves people with more questions.

Human adviser

They’ll help you define your goals in clearer, more practical terms. What are you actually saving for? How much risk feels comfortable; and how much is too much? Do you have the right foundations in place, like an emergency buffer, before you start investing?

They’ll also walk you through the different options available – explaining asset classes, account types, and structures – in a way that makes sense, so you can make confident, well-informed decisions.

Most importantly, your choices will be guided by a holistic view of your financial life, so you can understand where you are now, where you want to be, and how to get there without unnecessary risk or confusion.

What it’s like to use digital advice tools

Even when digital advice is technically accurate, the experience of using it can be frustrating. You might not be sure what information to provide. You could receive a long, complex answer with no clear action steps. Or you might walk away with more questions than you started with.

If your input is slightly off, or if the tool doesn’t understand the nuance behind your situation, the advice can easily miss the mark. And unlike a conversation with a real person, there’s usually no way to ask follow-up questions, clarify assumptions, or adjust your direction.

What Are The Benefits of Seeing a Financial Adviser?

With a human adviser, the process may take more time but the outcome is often far more valuable. They help you ask the right questions, explore options in depth, and bring your entire financial world together into one clear, personalised strategy. Most importantly, they stay with you over time, checking in, adjusting the plan, and helping you stick with it as life changes.

Beyond just answering individual questions, human financial advisers offer strategic, long-term support. They’re not just here to crunch numbers; they’re here to help you take control of your whole financial life, build momentum, and stay on track through every stage.

Here are just some of the ways they can help:

Build a clear financial roadmap

Optimise your cashflow to manage debt and expenses now, while still making progress toward your future goals. A good adviser helps you balance your priorities – so you don’t have to choose between living well today and preparing for tomorrow.

Optimise your super

From choosing the right fund to structuring contributions and investment mix, advisers ensure your superannuation is working efficiently and aligned with your retirement goals.

Reduce tax liabilities

Through smart structuring and timing – particularly for investments, business income, or property – they help you hold onto more of what you earn and grow.

Manage insurance cover

Whether it’s life, TPD, trauma or income protection, advisers help you choose the right cover for your needs – and advocate for you if you ever need to make a claim.

Navigate life changes

From redundancy to launching a business, maternity leave to a sea change, your adviser helps you adapt your strategy with confidence and control.

Plan for aged care and inheritance

They support you in preparing for the future – whether that means planning for your own aged care, managing the costs of supporting a parent, or ensuring your estate passes smoothly to the next generation.

Coordinate with your broader financial team

Advisers often work alongside your accountant or lawyer to ensure all parts of your financial life are working together – and nothing gets overlooked.

Build resilience into your plan

Life happens. A good adviser helps you put contingencies in place for illness, job changes, market dips, and other unexpected events – so you’re ready for whatever comes next.

They understand the latest legislation

>Legislation changes can happen frequently, and things like tax, super and business can be impacted by these. While digital advice will often not be up to date with the latest changes, or be able to prepare you for changes that are about to come into force, an adviser will understand any changes and be able to help you optimise your situation to suit.

And perhaps most importantly, they bring real-world experience to complex, high-impact situations – like divorce settlements, blended family finances, international relocations, or business succession. They also know how to guide you through major financial events that come with emotional weight, such as managing an inheritance, receiving an insurance payout, or even handling a sudden windfall like a lottery win. These are moments where generic advice simply won’t cut it. A trusted adviser helps you navigate the practical steps, avoid costly missteps, and make decisions that support both your financial wellbeing and your peace of mind.

The Limitations of Human Advice

While human financial advisers offer personalised guidance and support, there are some considerations to keep in mind:

Cost

Personalised advice comes at a price. Most advisers charge a flat fee, an hourly rate, or a percentage of assets under management. While this can be a barrier for some, many clients find the value far outweighs the cost – especially when it leads to better long-term outcomes or avoids costly mistakes.

Time commitment

Working with an adviser isn’t a one-click process. It involves conversations, paperwork, reviews, and check-ins. It takes time but it’s time invested in building a stronger, more resilient financial future.

Availability

Good advisers often have waitlists or work with a limited number of clients at a time to ensure quality and personalised attention. That means you may not be able to engage someone immediately, especially if you’re looking for fast, transactional advice.

Despite these considerations, research consistently shows that the benefits of financial advice often outweigh the costs. According to the Financial Advice Association Australia’s 2024 Value of Advice report, 9 in 10 clients of financial advisers say the benefits of financial advice outweigh the costs. Furthermore, advised Australians are significantly more likely to feel financially secure than those who are unadvised (85% vs 62%).

For many Australians, the peace of mind, clarity, and improved financial outcomes that come from a long-term advisory relationship more than make up for these trade-offs.

What is the Right Option For You?

If you’re just getting started, digital tools can be a helpful entry point. They’re great for learning the basics, setting simple goals, or exploring financial ideas on your own terms. They can tell you what to consider or provide general suggestions but they won’t guide you through the next step or help you turn intention into action.

And action is often the hardest part.

But if your situation is more complex, or if you’re thinking long term and want to know you’re on the right path, a trusted adviser can provide more than just answers. They offer structure, clarity, accountability and partnership. They help you take action, and they help you keep going. Want some direction on how much money you need to see a financial adviser – read our next blog.

Our advisers don’t just give advice and send you on your way, we help you implement it and follow through. We guide you through the steps, stay with you through the ups and downs, and adjust the plan when life shifts direction. Support, accountability and direction make all the difference.

We’re goal-oriented by design. That means everything starts with a conversation about your goals; what you want to achieve, what matters to you, and what kind of lifestyle you want to enjoy along the way. Then we build a plan that fits your life, balances your priorities, and gives you the best chance of reaching those goals while still living well today.

Financial tools can point you in the right direction.
But a good adviser will walk the path with you.

Conclusion

Financial decisions are deeply personal. Whether you’re growing your wealth, protecting your family, or preparing for the next chapter, the right advice can make all the difference.

Digital tools are fast and accessible but, when the stakes are high, there’s no substitute for having someone in your corner who truly understands your life.

If you’re ready to explore your options, talk to a financial planner who’ll work with you to build a strategy you can believe in.

Book a Free Consultation