English

AI Financial Advice: Supply, Demand, and Life Cycle Implications

General Economics 2026-08-03 v1 General Finance Portfolio Management

Abstract

We ask a representative sample to write prompts seeking spending and investing advice from LLMs, then simulate the lifetime effects of following the advice under realistic asset and labor market conditions. Applying this method to GPT-5.2, we find following the advice would move respondents toward life cycle theory: broader participation in diversified equity funds, age-declining equity shares, and larger savings buffers. Recommendations vary systematically by gender, prior AI experience, and financial literacy. For gender, two-thirds of recommended equity-share differences arise from men and women writing different prompts (demand), while one-third arise from gender labels attached to otherwise identical prompts (supply).

Keywords

Cite

@article{arxiv.2608.01607,
  title  = {AI Financial Advice: Supply, Demand, and Life Cycle Implications},
  author = {Taha Choukhmane and Tim de Silva and Weidong Lin and Matthew Akuzawa},
  journal= {arXiv preprint arXiv:2608.01607},
  year   = {2026}
}

Comments

92 pages, 38 figures, 10 tables