Microsoft's AI-powered chatbot, Copilot, is moving into the financial advice space and taking on tasks once carried out by trained professionals. Although it can quickly answer basic financial questions for free, compared to the average annual $4600 fee charged by a human adviser, it still faces challenges in areas where judgement and local knowledge are essential.
AI is reshaping industries including healthcare, fraud detection and financial services. Microsoft Copilot was recently tested in a real-world financial Q&A experiment, going head-to-head with a veteran financial adviser across a set of typical investor questions. The goal was to assess whether AI could match or even replace human expertise in managing finances.
In straightforward areas, such as explaining superannuation access rules or defining the preservation age requirements, Copilot was both accurate and prompt. Its responses were clear, informative and easy to follow. However, with more detailed or region-specific topics, such as current superannuation contribution caps in Australia, the chatbot's weaknesses became clear. It incorrectly cited the outdated $27,500 cap, missing the updated $30,000 limit. This could lead to users missing out on valuable tax benefits if they do not verify the information.
The results indicate that AI performs well with factual questions but lacks the ability to fully understand local context or adjust to changing regulations. It often defaults to U.S.-based content, suggesting investment material that may not be suitable for new Australian investors. There is clear potential for those who prefer self-education or have simple financial needs, but depending too much on AI could result in costly mistakes.
The key takeaway is that AI tools like Copilot can serve as helpful assistants for learning and idea validation. Yet for tailored advice, big financial decisions or managing emotional risk tolerance, human advisers remain the more adaptable and reliable choice.
