How Americans Are Using AI to Manage Their Money: Survey

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The variety of Americans using artificial intelligence to administer their funds is on the rise, a latest report says.

In a survey from Chicago-based BMO Bank, 37% of respondents say they are actually using AI to assist manage their money. People on this group aren’t only turning to AI for investment advice, which 47% are doing, but additionally embracing the technology to:

Find out about personal finance topics (49%)
Update household budgets (48%)
Construct savings (47%)
Create and/or update financial plans (46%)

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A generational AI divide

The BMO survey found that the emerging embrace of AI is more pronounced amongst Gen Z, with 61% of respondents from that cohort using the technology to assist manage their funds and investments, in comparison with 37% of Americans of all ages.

Gen Zers are stressed about their funds, and there are indications AI may relieve a few of their worries. Based on the report, listed here are the highest sources of monetary 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 imagine AI will help people make more informed financial decisions and 55% are confident AI tools will help them make real financial progress.”

The findings add to a body of literature in regards to the extent to which individuals trust AI for financial help. In June 2024, the Financial Industry Regulatory Authority, or FINRA, reported that barely more people (34%) trust AI for projected stock and bond performance information than those (33%) who trust financial professionals.

Do you have to trust AI with financial decisions?

While research has emerged suggesting that AI can outperform financial analysts, it stays a nascent technology that holds only a slight edge over its human counterparts.

In May 2024, researchers on the University of Chicago Booth School of Business found that AI is capable of produce a 60% rate of accuracy in predictive financial performance. Human experts’ accuracy tends to fall between 53% and 57%, suggesting the technology is healthier at forecasting corporations’ future earnings and stock performances than financial analysts.

Beyond investment evaluation, using AI to help with household budgets and improve savings ought to be approached with a healthy dose of skepticism. Personal finance is personal, and by disseminating broad recommendations, AI fails to account for matters that could be critically necessary on a person level.

“Managing money is greater than analytics; it’s a deeply personal relationship shaped by emotions, experiences, and unique life circumstances,” Paul Dilda, head of U.S. consumer strategy at BMO, said within the report.

AI chatbots have also been widely mocked after proving to be bad at basic math — which is a major think about making personal finance decisions.

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