Australian experts warn of privacy risks when using AI for financial advice

More than half of Australians now use generative AI tools daily, and many turn to these platforms for personal financial guidance. Experts highlight that users often upload sensitive documents such as bank statements, payslips, and identification papers, exposing details like name, address, date of birth, bank account numbers and Medicare information.

Financial adviser Betsy Westcott cautioned that AI services are not regulated as financial advisors and do not owe users a duty of care. She advised anyone who has uploaded personal files to delete the relevant chats immediately, review memory and file‑storage settings, and seek advice from official sources such as moneysmart.gov.au or licensed financial counsellors.

Westcott also noted that paid AI services may offer stronger security controls than free versions, but no platform can guarantee complete protection. The warning underscores growing privacy concerns as AI becomes integrated into everyday financial decisions in Australia.