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Brits Turn to AI Chatbots for Financial Advice, But Can We Trust Them?

Elizabeth Greenberg

25 March 2026, 12.30pm

ai financial advice chatbot trust
“AI should be used to complement careful, expert-led research, not replace it,” Michele Tieghi, Financial Expert and Founder of psyfi money, said.

It’s estimated that over half of UK adults use AI for financial advice according to Lloyds Bank, including guidance on cryptocurrency. As AI continues to rise in popularity, the British public’s reliance will naturally follow suit.

But which AI model can you rely on for your investment advice? Experts at psyfi money conducted a study looking at which of the most popular AI models is the best for providing investment advice.

The study evaluated each response based on several key criteria: the amount of jargon used, beginner-friendliness, accuracy, relevance, length, price discrepancy of cryptocurrencies, and the inclusion of up-to-date legal and regulatory information. These factors were combined to calculate a total index score out of 100 for each provider.

AI Model
Jargon Count
Beginner Friendliness Score
Accuracy Score
Relevancy Score
Length Classification
Average Price Discrepancy (%)
Law and Regulation Score
Total Index Score / 100
ChatGPT
33
7.6
8.6
9.2
Clear and Detailed
3.09
7.5
82
Claude
36
8
8.6
8.4
Clear and Detailed
17.75
7.0
72
Perplexity
35
7.4
8.8
8.6
Clear and Detailed
N/A
5.0
64
Gemini
39
6.8
8.6
8.6
Overcomplicated
765.09
6.0
54
Google AI Mode
38
6.4
8
7.6
Clear and Detailed
0.71
5.5
36
Grok
44
5.4
8
7.8
Overcomplicated
0.48
4.5
16
The strongest performers still have serious downfalls
ChatGPT ranked highest overall, with a score of 82 out of 100 for its balance of clarity, relevance and accuracy. Claude followed with 72, while Perplexity placed third. However, even the top-performing models showed issues, particularly on legal and tax nuance.
One of the most serious problems the study revealed concerned regulatory guidance. When asked about the safest way for a beginner to invest in cryptocurrency in 2026, Claude incorrectly described Binance as registered with the Financial Conduct Authority (FCA). In reality, Binance was ordered to cease regulated activities in the UK in 2021.

“Recommending a non-FCA-registered exchange as the safest option for a beginner is about as concerning as it gets,” said Michele Tieghi, founder of psyfi money. “Investors could be left without asset protection and exposed to market manipulation.”

While other models mentioned Binance more cautiously, the error highlights the broader risk of AI systems presenting outdated or incorrect compliance information with confidence.

Model Strengths by Investor Type

The study also identified how each AI model would work more efficiently for different types of investors, though none were without risk.
Beginners: Chat GPT and Claude emerged as the most beginner-friendly model, scoring 7.6 and 8 out of 10 for accessibility. However, Claide’s incorrect claim that Binance is FCA registered significantly shows the information it gives can’t always be trusted.
Intermediate Investors: Perplexity offered strong source-backed guidance and achieved the highest accuracy score (8.8 out of 10), making it more suitable for users who already have a basic understanding.
Advanced Investors: Gemini offered the most detailed, technical analysis, but its heavy use of jargon and inaccurate pricing and regulatory guidance mean investors could face costly mistakes if they rely on the model without careful scrutiny.

Pricing errors put investors finances at risk

All of the models tested returned incorrect prices for at least 45 of the 50 popular cryptocurrencies tested. Gemini showed the largest discrepancies, with prices on average 765 per cent away from live market levels. Claude’s discrepancy averaged 17.75 per cent, while ChatGPT’s stood at 3.09 per cent. Perplexity wasn’t able to even provide price data during the testing period.
In markets where prices can shift rapidly, even modest discrepancies can lead to mistimed trades and huge financial losses.

Jargon Heavy Answers

Beyond outright errors, the study found that AI-generated responses were frequently over-complicated and jargon-heavy. Grok produced the most technically complex and least beginner-friendly answers, while Gemini also ranked highly for jargon use.
Legal and tax guidance raised another serious red flag. While most models correctly stated that cryptocurrency airdrops may be taxable, they failed to explain the distinction made by HM Revenue & Customs between tokens received in exchange for services and unsolicited distributions, a distinction that could significantly alter an investor’s tax liability.
“AI models can summarise broad principles, but they often miss the finer regulatory detail,” Michele Tieghi, Financial Expert and Founder of psyfi money, said. “In areas like tax and compliance, those details matter, and can cost investors thousands in fines if not handled correctly.”
 “AI is advancing rapidly, but this study makes it clear that it still has a long way to go when it comes to cryptocurrency advice. Its limitations, from inaccurate pricing to incorrectly labeled exchanges, make it unsuitable as a standalone guide for investors.
“AI should be used to complement careful, expert-led research, not replace it. The lack of nuance, detail, and accountability highlighted in this study is a serious warning for anyone considering relying solely on AI for crypto guidance.”

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Elizabeth Greenberg

Staff Writer

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