AI in Finance: When It Helps and When It Poses Risks

Many people now use artificial intelligence for questions relating to budgeting, savings, loans and insurance. According to a survey reported by Pénzcentrum, 48% of Hungarian respondents use AI at least occasionally for financial or insurance matters.

A quick and easy-to-understand answer, however, is not necessarily accurate, complete or tailored to the situation in question. AI can be a useful tool during preparation, but it matters what task it is given, what data is shared with it and whether its conclusions are checked.

Younger people are more open to AI, but still trust humans with major decisions

According to Pénzcentrum’s report, 68% of respondents aged 18–34 use AI for financial or insurance purposes. At the same time, the results reported by the publication show that 64% of respondents rely on a human expert for major financial decisions, while only 5% would depend exclusively on artificial intelligence.

This difference suggests that many people regard AI primarily as a tool for preliminary research rather than an independent decision-maker. It can help identify the key considerations and formulate further questions, but its answers should be checked against contractual terms, the provider’s official information and, where necessary, a professional opinion.

What can AI be used for effectively?

One practical advantage of AI is that it can explain complex concepts in accessible language and organise information into a clear structure. It can be used, for example, to create categories for a household budget, provide an initial explanation of banking and insurance terms, or prepare a list of questions for an in-person consultation.

It can be particularly useful for tasks where it is expected to provide a starting point rather than a final decision. Examples include summarising a lengthy information document or outlining the criteria that can be used to compare different options.

• Clarifying concepts: it can provide a simpler explanation of an interest rate type, insurance exclusion or fee, for example.
• Organising expenses: recurring and occasional costs can be grouped into categories.
• Preparing questions: it can compile the points that should be clarified before entering into a contract.
• Comparison: it can organise the criteria used to assess different offers.

Calculations performed by AI must also be checked separately. An incorrectly entered interest rate, term, fee or other condition can produce a false result even though the answer may still sound convincing.

Confident wording does not guarantee accuracy

Generative systems may provide incomplete, outdated or incorrect information. They may overlook a condition attached to a financial product or give a general answer to a question whose assessment depends on a customer’s individual circumstances.

Users are also aware of the risk. According to the survey reported by Pénzcentrum, 44% of respondents are concerned about incorrect suggestions and the lack of clarity over responsibility for AI recommendations.

When using an external AI service, it is unwise to assume that any loss caused by an incorrect answer will automatically be reimbursed. Terms of service may vary, while legal and financial liability may depend on the circumstances of the individual case.

Sensitive financial data should not be shared

There is no reason to provide a general-purpose AI system with card or bank account details, login credentials, passwords, authorisation codes or full contract identifiers. Documents that directly identify a person and their financial relationship should not be uploaded either.

If help is needed to interpret a document, names, addresses, customer numbers and other sensitive data should first be removed. It is also advisable to review the service’s data processing, data retention and history settings before use. More information about the privacy settings of AI services and the possibility of human review is available in our separate guide.

Alongside data privacy, the risk of fraud also requires attention. According to a report on MABISZ’s professional platform, the spread of generative AI has also introduced new forms of fraud involving manipulated photographs and fake invoices in the insurance sector. The technology can therefore not only support administration but also make it easier to create deceptive content.

When should a professional be consulted?

The greater the financial impact of a decision, the longer its duration and the more it depends on individual circumstances, the riskier it is to rely solely on an AI answer. Examples may include taking out a substantial loan, making a long-term investment, choosing complex insurance cover, planning for retirement or dealing with a tax matter.

Consulting a professional may also be justified when several contracts are interconnected, the decision may have legal consequences or the AI’s answer differs from an official document. A human expert is not infallible either, but they can ask follow-up questions, examine individual circumstances and clarify the capacity in which they are providing information.

This article provides general information and does not constitute personalised financial, investment, insurance or legal advice.

Financial institutions’ use of AI is also subject to security expectations

Financial institutions, as well as customers, may use AI-based solutions. According to the National Bank of Hungary, its Recommendation No. 13/2025 supports the responsible and secure use of artificial intelligence in banking.

According to FinTechZone’s analysis, the central bank’s expectations include the risk classification of AI systems, the assignment of responsibilities, and stronger IT security and transparency. However, the frameworks governing institutions do not make the technology infallible or replace due care on the customer’s part.

Security does not depend on a single party: the practices of customers, financial institutions and technology providers all matter. In addition to institutional safeguards, users must therefore verify the information they receive and handle access credentials carefully.

Checklist for AI-based financial assistance

Risk can be reduced by treating an AI answer as an initial opinion rather than a final decision. The following questions are worth considering before and after using it:

• Has only non-sensitive data necessary for the task been entered into the system?
• Can general information be distinguished from a personalised recommendation?
• Can the figures be checked against official information from the bank, insurer or relevant authority?
• Is the cited rule, fee or product condition up to date?
• Is it clear which assumptions the calculation is based on?
• Would an incorrect answer cause a substantial or difficult-to-reverse loss?

If an error could have serious consequences, it is advisable to pause and verify the information before approving the transaction. The original wording of the contract, the provider’s official information and, where necessary, the opinion of an appropriate professional are more important than a quick answer.

AI can prepare, but humans should make the decision

Artificial intelligence can provide genuine value in finance when it reduces the time needed to process information, helps users understand concepts and leads to better questions. However, it should not be treated as a repository for sensitive data, a verified calculator or an automatically reliable financial adviser.

The safe division of responsibilities is simple: AI can organise, summarise and explain, but independent verification is needed before decisions involving substantial sums, long-term commitments or legal consequences. This allows users to benefit from the technology’s speed without handing over responsibility for the final decision.