Study Finds Major AI Chatbots Giving Incorrect Financial and Consumer Advice to UK Users
Study Finds Major AI Chatbots Giving Incorrect Financial and Consumer Advice to UK Users
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Artificial intelligence chatbots are providing inaccurate financial guidance and misleading consumer information to UK users, according to new research,The Guardian reported. A review by consumer group Which? found that several leading AI tools, including ChatGPT, Microsoft’s Copilot, Google’s Gemini and Meta’s AI assistant, delivered erroneous advice on tax rules, travel requirements and compensation claims.
In tests involving 40 questions, Which? discovered that Copilot and ChatGPT incorrectly advised users to exceed HMRC’s annual ISA investment limit, while ChatGPT also wrongly stated that travel insurance was mandatory for most EU destinations. Meta’s AI assistant gave flawed guidance on how to file claims for flight delays, and Gemini suggested withholding payment from a builder after a dispute — a recommendation Which? said could expose consumers to legal repercussions.
The watchdog said the findings reveal a troubling pattern of inaccuracies, especially given the growing number of people relying on AI for financial and legal inquiries. Meta’s AI ranked lowest in performance, followed by ChatGPT, while Copilot and Gemini scored slightly better. Perplexity, an AI known for search-focused responses, received the highest overall score.
Some users told The Guardian they had positive experiences with AI tools when seeking advice on credit cards, investment fees or household purchases. Others, however, reported receiving outdated or incorrect information. One self-employed user in Ireland said ChatGPT repeatedly supplied inaccurate tax codes and miscalculated insurance and credit rates.
Which? also found that when asked about claiming HMRC tax refunds, ChatGPT and Perplexity promoted paid refund services alongside the free official option — a practice the group called “worrying” due to high fees. Regulators emphasized that advice from general-purpose AI tools is not covered by financial protections. Tech companies responded by urging users to verify information and consult professionals for complex matters.
