We live in an era where AI can write essays, generate reports, and even tell you why your dog is giving you side-eye.

So, naturally, business owners are turning to AI for financial advice because, why pay an expert when ChatGPT, Gemini, or some AI-powered dashboard can just tell you what to do, right?

Wrong. So wrong. Painfully wrong.

If I had a dollar for every time a business owner proudly told me: “I asked AI about X matter, and the response was great and didn’t cost me a dime!” then I wouldn’t need to be working; I’d be retired on a beach (here in Puerto Rico of course!).

Quick disclaimer before someone calls me a hypocrite: I love AI. Yes, AI helps me write these posts, but the genius is in the ideation, strategy, and real-world experience. I use it to brainstorm, streamline work, and (let’s be honest) clean up my Spanglish. It helps me catch typos and ensure my English doesn’t sound like it took a detour through Google Translate. Think of it as my digital assistant, not the brains behind the operation.

But let’s get one thing straight, AI is a tool, not a replacement for financial expertise. And trusting it blindly to make big business decisions? That’s how businesses lose money, miss opportunities, and sometimes, fail completely.

The AI Illusion: Why Business Owners Think It’s Smarter Than It Is

AI is fast, confident, and sounds super convincing, which is exactly why business owners fall for it. You type in a question, it spits out an answer, and suddenly you feel like a finance expert. The problem is that AI doesn’t know your business.

• It doesn’t see that your cash flow is on life support.
• It doesn’t know your biggest client is about to ghost you.
• It doesn’t see the hidden costs or inefficient spending that’s eating up your profit.
• It doesn’t understand the emotional, strategic, and market-driven decisions that go into growing a business.

AI is great at processing data, but it lacks judgment, nuance, and real-world experience.

Lesson #1: AI gives you answers, but it doesn’t ask the right questions. And in finance, the questions matter just as much as the answers. AI doesn’t strategize; it just summarizes.

When AI Goes from Helpful to Harmful

Business owners get into trouble when they use AI as a shortcut for financial strategy. Instead of hiring an expert, they ask ChatGPT to “analyze” their business, build a budget, or even predict their cash flow. And sure, AI can crunch numbers, but if your inputs are flawed, your outputs will be too.

It’s the classic “garbage in, garbage out” problem. AI doesn’t know if:

• Your financials are outdated or inaccurate.
• Your pricing model is broken.
• Your expenses are about to spike next quarter.

And if AI doesn’t know? It can’t warn you before disaster strikes.

Lesson #2: AI can summarize what already happened. A CFO helps you predict what’s coming next.

The Cost of Over-Relying on AI (AKA, when “Free” Becomes Very Expensive)

You might think, “Well, AI is free, and a CFO costs money, so I’ll just use AI.” And listen, I get it, cutting costs is smart. But there’s a difference between being cost-effective and making reckless financial decisions.

When AI replaces strategy:

• Bad financial decisions go unchecked because AI won’t tell you your business model is unsustainable, it’ll just tell you today’s numbers look fine.
• You miss red flags before it’s too late because AI won’t warn you when a cash flow crisis is around the corner, but a CFO will.
• You end up paying more to fix mistakes later because by the time you realize AI steered you wrong, you’re knee-deep in financial trouble, and fixing it costs way more than doing it right from the start.

Lesson #3: The “free” AI solution often comes with a hidden price tag—your business stability.

How to Use AI the Right Way (So It Helps Instead of Hurts)

AI isn’t the enemy. It’s an incredible tool, when used correctly. You can make it work for you, in the following ways:

• Use AI for efficiency, not decision-making. Let AI draft reports, summarize trends, or automate tasks, but financial strategy requires human expertise.
• Double-check AI’s work with a professional. AI doesn’t fact-check itself. A CFO (or at least a real human with financial knowledge) should validate the recommendations.
• Understand what AI is missing. AI doesn’t know your market shifts, industry nuances, or the context behind your business’s unique challenges. You need a human brain for that.

So…

I love AI. I use it. It makes life easier. But when it comes to real financial strategy, I trust experience, expertise, and human decision-making over a chatbot any day.

Business owners, go ahead and use AI but don’t bet your business on it. Run your numbers, get real advice, and when it comes to financial decisions that can make or break your company, get a professional involved.

The next time you use AI remember, AI doesn’t know what it doesn’t know. And what it doesn’t know could cost you everything.

And, if you need help making actual smart financial decisions, you know where to find me.💃🏽