Don’t Take Financial Advice from AI

2025-10-22

How AI gets simple finance wrong, and how to make it work for you, not mislead youTopics covered include:How AI ignores the time value of moneyA detailed example of ChatGPT misleading by making a simple math mistakeSome examples of opportunity costs and sunk costs when making financial decisionsUnderstanding how AI works can help us use it more effectivelySponsorsClaude.ai - Sign up for Claude today and get 50% off Claude ProMoney for the Rest of Us PlusInsiders...

How AI gets simple finance wrong, and how to make it work for you, not mislead you

Topics covered include:

How AI ignores the time value of money
A detailed example of ChatGPT misleading by making a simple math mistake
Some examples of opportunity costs and sunk costs when making financial decisions
Understanding how AI works can help us use it more effectively

Sponsors

Claude.ai - Sign up for Claude today and get 50% off Claude Pro

Money for the Rest of Us Plus

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Show Notes

What Kind of a “PhD-level Expert” Is ChatGPT 5.0? I Tested It. by Gary Smith—Mind Matters

Top US Army General Says He’s Letting ChatGPT Make Military Decisions by Joe Wilkins—Futurism

Why Language Models Hallucinate by Adam Tauman Kalai, Ofir Nachum, et al—Arxiv

Auto Loan Calculator—nerdwallet

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