When Laura Michener, a 35-year-old marketing specialist from Vancouver, found herself drowning in spreadsheets trying to create a retirement plan, she turned to an unlikely financial advisor: artificial intelligence.
“I’d been putting it off for months,” Michener told me during a recent interview. “Then my brother showed me this AI tool that built me a complete savings strategy in minutes. It wasn’t perfect, but it gave me a starting point I never had before.”
Michener isn’t alone. A growing contingent of Canadians are embracing AI-powered financial planning tools to navigate everything from basic budgeting to complex investment strategies. According to a recent survey by Finder Canada, nearly 23% of Canadian adults have experimented with AI for some aspect of their financial decision-making in the past year—a number that’s expected to double by 2025.
The surge comes as financial anxiety reaches new heights. With inflation still running above the Bank of Canada’s 2% target and mortgage renewals hitting elevated rates, Canadians are scrambling for guidance. Traditional financial advisors typically require minimum asset thresholds of $100,000 to $250,000—putting personalized advice out of reach for many.
“We’re seeing a democratization of financial planning,” explains Dr. Pauline Richardson, fintech researcher at Ryerson University’s Ted Rogers School of Management. “AI is filling a massive gap in the market, providing some form of guidance to people who otherwise might have none.”
The tools range from simple chatbots that answer basic questions about tax-free savings accounts to sophisticated platforms that analyze spending patterns and recommend portfolio allocations. Most operate on a freemium model, with advanced features available through subscription tiers ranging from $5 to $50 monthly.
Wealthsimple, one of Canada’s largest digital investment managers, recently introduced AI-powered financial planning features that analyze a client’s finances and create customized roadmaps. The company reports that users who engage with these AI features save an average of 15% more than those who don’t.
But the trend raises important questions about financial literacy, privacy, and regulation. Unlike human advisors who must pass rigorous certification exams and adhere to strict ethical standards, AI tools operate in a regulatory grey zone.
“The challenge is that these systems are built on probabilistic models trained on past data,” warns Katrina Dawson, chief economist at Wellington Financial Group. “They can miss important contextual factors or fail to account for a person’s true risk tolerance.”
The Financial Consumer Agency of Canada (FCAC) has expressed growing concern about the quality of AI-generated financial advice. In a March policy brief, the agency noted that AI systems might not adequately account for Canada’s specific tax rules, benefits programs, or investment regulations.
“The algorithms behind these tools are often developed in the U.S., with Canadian nuances added as an afterthought,” says Roberto Ferraro, a certified financial planner who reviews AI planning tools on his popular YouTube channel. “I’ve seen AI recommendations that completely ignore the RRSP-TFSA balance or propose U.S. securities that have unfavorable tax treatment for Canadians.”
Privacy concerns loom large as well. Many of these platforms require extensive access to financial data—from banking transactions to investment holdings. While companies promise rigorous security measures, the concentration of sensitive financial information creates potential vulnerabilities.
Cynthia Klein, a cybersecurity expert at the Canadian Centre for Cyber Security, recommends caution: “Before using any AI financial tool, read the privacy policy carefully. Understand what data they’re collecting, how they’re using it, and whether they’re selling anonymized insights to third parties.”
Despite these concerns, the convenience factor is driving adoption across demographic groups. Surprisingly, it’s not just tech-savvy millennials embracing these tools.
“Our fastest-growing user segment is actually Canadians aged 55 to 65,” reveals Cameron Dearborn, founder of Fiscal.ai, a Toronto-based financial planning startup. “They’re approaching retirement and suddenly realizing they need a plan, but they find traditional advisors intimidating or expensive.”
For Dearborn, the ideal approach combines AI efficiency with human oversight. His company pairs AI-generated plans with quarterly check-ins from certified financial planners who review the AI recommendations.
This hybrid model appears to be gaining traction across the industry. The Investment Industry Regulatory Organization of Canada (IIROC) reports that 63% of financial advisors now use some form of AI to enhance their services, rather than being replaced by it.
“The most successful implementations use AI to handle the number-crunching and basic scenarios, freeing human advisors to focus on complex situations and emotional aspects of financial planning,” explains Wei Chen, fintech analyst at RBC Capital Markets.
For everyday Canadians considering AI financial planning, experts suggest a measured approach. Start with a free tool to organize your financial picture, but verify major recommendations against multiple sources. Consider using AI as a starting point for conversations with human advisors, potentially reducing the billable hours needed to create a comprehensive plan.
Back in Vancouver, Laura Michener has found her sweet spot with AI financial planning. “I use the AI to track my spending and run different saving scenarios, but I still check in with a human advisor twice a year to make sure I’m not missing anything major,” she says. “It’s like having a financial assistant that never sleeps, combined with an expert who can catch what the AI misses.”
As these tools evolve, Canadian regulators will likely introduce more specific guidelines around AI-generated financial advice. Until then, the onus remains on consumers to approach these powerful but imperfect tools with appropriate skepticism.
The democratization of financial planning through AI offers tremendous potential for improving Canadians’ financial well-being—provided we remember that even the smartest algorithm can’t capture the full complexity of a human financial life.
