MIT researchers find AI chatbots give women more conservative financial advice, costing them $60,000 by age 60

When it comes to financial guidance, artificial intelligence (AI) chatbots from large-language models like ChatGPT and Claude may inadvertently steer women toward more conservative options, potentially costing them $60,000 by the age of 60, according to researchers at the MIT Sloan School of Management. The study involved having 1,000 U.S. adults provide prompts to an LLM, and then comparing the outcomes of following the AI's advice versus continuing existing financial habits.

The findings revealed that women received recommendations resulting in $60,000 less wealth at age 60, on average, compared to men. This disparity arose due to the LLM's tendency to suggest riskier financial moves for women, including lower equity share recommendations. While AI financial advice often pushes users towards saving, investing, and gradually shifting towards less risky investments, its impact on actual action remains unclear.