ARTIFICIAL FINANCE

A growing number of Canadians are turning to AI to manage their investments just beware of hallucinations'.

- RENEE SYLVESTRE-WILLIAMS

(Companies have) put a lot of work into making it sound very good, but (Google's AI) still recommended using super glue to hold pepperoni on a pizza.

Using technology to manage your finances is nothing new, but with the arrival of artificial intelligence (AI), Canadians are increasingly using it to manage finances and investments, according to a recent study by BMO.

In its latest findings from the Real Financial Progress Index, the bank highlighted a significant trend: Thirty-three per cent of Canadians, mostly generation Z and millennials, are turning to artificial intelligence to manage their finances and investments. Canadians are using AI to learn more about personal finance topics, create and update their budgets and identify new investment strategies.

When asked if AI is ready to take on the role of financial adviser and planner, experts agree that it depends on what information you're getting, how much you trust the information and the reasons people are turning to it instead of the financial industry.

"I have a controversial opinion," says Colin White, portfolio manager and CEO of Verecan Capital Management.

"It's because financial services in Canada is largely a sales game and people are really disenfranchised from most channels of financial advice. They're looking for any viable alternative." He mentions a "CBC Marketplace" investigation that found that banks pressured employees to upsell unnecessary products and services to customers to meet sales goals.

White says that AI seems sentient and able to communicate well.