Many people rely on AI to offer advice on budgeting, analyze spending and run scenario simulations when investing or paying down debt.
While that sounds useful in theory, financial experts warn that there is one thing you should never share about your finances with large language models like ChatGPT, Claude, Grok or Gemini: identifiable financial information.
Although that makes doing any of your financial planning with AI pretty complicated, it’s wisdom worth following. When you type in specifics or upload pictures of documents, this information is stored on the platform and may potentially put you and your finances at risk for fraud and identity theft.
“I highly recommend that clients should never share anything that identifies them or gives access to their accounts,” Nava Knafo, head of risk at National Bank Financial, told HuffPost. “Once they type it into a chatbot, they’ve lost control over where it goes.”
This includes your bank account and card numbers, passwords or PINs to any of your banking accounts, and government ID or Social Security numbers. Full bank statements, tax returns or loan documents are also dangerous to share with AI chatbots like ChatGPT since they bundle your name, address, employer and account details.
Depending on the platform’s settings, Knafo said, “conversations may be stored, reviewed or used to improve models, and any system can be breached.”
“Chatbots also aren’t bound by the confidentiality and security obligations that apply to banks and licensed advisers,” Knafo continued. Those who commit fraud use stolen identifiers for account takeover and identity theft. Uploading them to ChatGPT may give these people direct access to your information.
“There’s generally no reason an AI tool needs this information, and sharing it unnecessarily can create privacy and security risks, including unauthorized access to accounts or misuse of personal and financial data,” Guru Sahajpal, the industry lead of financial services and fintech at the AI and technology services company Cognizant, told HuffPost. “As AI becomes more integrated into financial services, consumers need to maintain awareness and control over what information they share with AI tools, why they are sharing it, and how it could be used beyond its intended purpose.”
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Here’s What To Do Instead ― And What To Do If You’ve Already Shared This Information
Being too forthcoming with information can be dangerous; however, if you’d still like to use an AI platform for help with your finances, it’s OK to share general or anonymized financial details.
“AI tools can be helpful for financial education and money management questions,” Christina Roman, consumer education and advocacy expert for Experian, told HuffPost.
“For example, consumers can ask about budgeting strategies, credit score basics, debt repayment methods, saving for a major purchase or how different financial products work,” she said.
A sample prompt might look something like:
I want to go on vacation to [INSERT DESTINATION] for [INSERT NUMBER OF DAYS] in six months. Create a realistic budget accounting for flights, accommodations, food and activities. Include a 20% buffer for unexpected expenses.
“When used thoughtfully, AI can be a valuable resource for financial education, helping consumers better understand their options and make informed decisions about their money,” Roman said.
If you’ve already shared personal financial information with an AI chatbot, Knafo said it’s important not to panic. “Sharing something doesn’t mean it has been misused, but treat it as exposed and take appropriate precautions. Start by deleting the conversation and checking the chatbot’s privacy settings to opt out of having your data used for model training.”
When using ChatGPT or any other AI tool, a good rule of thumb is to ask yourself if you would reveal what you’re sharing to a wider audience.
Since providers can keep data for a period of time, deleting the conversation may not erase it immediately. However, it’s still a crucial step to take. Next, you’ll want to secure your accounts and change your passwords, turn on multi-factor authentication, and call your bank or card issuer right away to flag the account and see if there’s an opportunity to replace your account or card numbers.
“If you shared a document like a paystub that bundles your name, address and employer, monitor your credit reports and accounts especially closely,” Knafo explained. If you see suspicious activity or believe your information is being misused, report it to your credit card issuer, bank or the Federal Trade Commission for guidance, especially if your Social Security number is involved.
Overall, when using ChatGPT or any other AI tool, a good rule of thumb is to ask yourself if you would reveal what you’re sharing to a wider audience. If you wouldn’t post it publicly or on a public computer, possibly for a stranger to see, then you should strip out the identifying details first.
Keeping personal details private is an important step in preventing your information from being stolen.
And if you are relying on artificial intelligence for financial advice, “treat the output as a starting point and verify it, because AI can be confidently wrong. It’s no substitute for a licensed professional on decisions like investing, taxes, or debt,” Knafo said.