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5 Ways Americans Are Using AI to Manage Their Money
By Jordan Chussler MONEY RESEARCH COLLECTIVE
Gen Z in particularly is embracing AI for help in personal finance decisions.
***Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services.***
The number of Americans using artificial intelligence to manage their finances is on the rise, a new report says.
In a survey from Chicago-based BMO Bank, 37% of respondents say they are now using AI to help manage their money. People in this group are not only turning to AI for investment advice, which 47% are doing, but also embracing the technology to:
- Learn about personal finance topics (49%)
- Update household budgets (48%)
- Build savings (47%)
- Create and/or update financial plans (46%)
A generational AI divide
The BMO survey found that the emerging embrace of AI is more pronounced among Gen Z, with 61% of respondents from that cohort using the technology to help manage their finances and investments, compared to 37% of Americans of all ages.
Gen Zers are stressed about their finances, and there are indications AI may relieve some of their worries. According to the report, here are the top sources of financial anxiety for Gen Z:
- Overall financial situation (85%)
- Fear of unknown expenses (80%)
- Housing costs (79%)
- Paying monthly bills (76%)
The report added that “58% of Gen Z believe AI can help people make more informed financial decisions and 55% are confident AI tools can help them make real financial progress.”
The findings add to a body of literature concerning the extent to which people trust AI for financial help. In June 2024, the Financial Industry Regulatory Authority, or FINRA, reported that slightly more people (34%) trust AI for projected stock and bond performance information than those (33%) who trust financial professionals.
Should you trust AI with financial decisions?
While research has emerged suggesting that AI can outperform financial analysts, it remains a nascent technology that holds just a slight edge over its human counterparts.
In May 2024, researchers at the University of Chicago Booth School of Business found that AI is able to produce a 60% rate of accuracy in predictive financial performance. Human experts’ accuracy tends to fall between 53% and 57%, suggesting the technology is better at forecasting companies’ future earnings and stock performances than financial analysts.
Beyond investment analysis, the use of AI to assist with household budgets and improve savings should be approached with a healthy dose of skepticism. Personal finance is personal, and by disseminating broad recommendations, AI fails to account for matters that can be critically important on an individual level.
“Managing money is more than analytics; it is a deeply personal relationship shaped by emotions, experiences, and unique life circumstances,” Paul Dilda, head of U.S. consumer strategy at BMO, said in the report.
AI chatbots have also been widely mocked after proving to be bad at basic math — which is a significant factor in making personal finance decisions.
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Since joining Money in 2023 as an investment editor, Jordan has specialized in a wealth of finance topics, ranging from traditional equities (stocks, mutual funds and ETFs), income investment vehicles and alternative assets to retirement savings, debt-based fixed-income securities and commodities, with a specific focus on gold and other precious metals. He takes pride in combining his personal interests and professional experience in finance and education to help readers increase their financial literacy and make better investment choices. Jordan has worked in digital publishing for 17 years after graduating from Lynn University as a member of both the Kappa Delta Pi International Honor Society and the U.S. Achievement Academy's All-American Scholar Program. He previously served as managing editor of Weiss Ratings, where he worked alongside a team of investment writers, editors and analysts to produce educational finance content and daily, weekly and monthly market news alerts. As a contributing writer for BetterInvesting Magazine, Jordan covered topics focused on the fundamentals of investing, technical and fundamental analysis, mutual funds, debt securities, dividend investing, retirement savings strategies and passive income generation. His bylines can also be seen in Apple News, Money Crashers, The Charlotte Observer, Fort-Worth Star Telegram and a dozen other newspapers.