People are increasingly turning to AI chatbots for financial advice, but multiple studies show the recommendations are inconsistent, biased, and sometimes lead to real financial losses. AI platforms lack regulatory oversight—over a quarter of UK consumers trust AI for money advice despite no consumer protections—and criminals are exploiting this gap with AI-generated deepfakes and synthetic identities to commit fraud, with UK losses alone reaching £1.28 billion in 2025. Unlike traditional financial advisors, AI systems don't have licensing requirements or accountability when their advice goes wrong, meaning users are essentially on their own if something goes bad.