Gen Z, millennials are using AI for personal financial advice, report finds

People are using artificial intelligence for tasks like writing and editing resumes and cover letters – and even getting personal financial advice. While some of those factors may be important, financial advisors caution that AI should not be your only tool.

A new Experian report found that 67% of Gen Zers and 62% of millennials surveyed use artificial intelligence to help with their finances. Users say AI-powered tools like ChatGPT have helped in areas including saving and budgeting (60%), financial planning (48%) and credit score improvement (48%).

“It’s free. It’s more accessible. It simplifies complex tasks like creating a budget,” said Christina Roman, director of consumer education and advocacy at Experian.

The study surveyed 2,011 US adults from August 30 to Sept. 3. Gen Z respondents were 18 to 27 years old while millennials were 28 to 43 years old.

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In comparison, about 41% of Gen Xers surveyed, or adults aged 44 to 59, have used or are considering using artificial intelligence as a financial tool. The share is smaller for baby boomers surveyed (ages 60 to 78) at 28%.

According to data Experian provided to CNBC, 98% of Gen Z adults and 98% of millennials have had a positive experience with software.

Although using AI that generates income can help as a first step in creating a financial plan or finding a way to increase your credit score, always verify the information with external sources, experts say.

“We see misinformation about financial issues all the time,” said Dawn C. Abernathy, a certified financial planner at Core Planning in Chesterfield, Missouri. He also has a background in software engineering and management.

“Coming from working on the technology for several years and having to solve very difficult problems … I will evaluate any response from any device,” Abernathy said.

Artificial intelligence can be good or useful for “very simple answers,” Abernathy said.

For example, you can enter what your monthly bills want to reach, and ask the AI ​​to create a budget that helps you save some money, Roman said.

However, artificial intelligence tools may fall short when it comes to complex areas such as investment advice and tax optimization. With those topics, AI can provide a starting point, but you’ll benefit from a financial advisor to help you find specific questions and provide personalized advice, Roman said.

“When it comes to creating a solution for a customer,” Abernathy said, “I wouldn’t trust an AI tool right now to come up with the final solution. I would have to review and evaluate that very carefully. “

If you plan to use AI tools, be careful about entering sensitive personal and financial information into the software. Otherwise, you are putting your privacy at risk.

“Make sure you’re safe with the information you’re putting into the AI,” Roman said.

If you’re planning to use AI for your finances, be sure to check the answers you get against other verified sources, experts say.

“The risk depends a lot on something you haven’t researched,” said Brenton Harrison, CFP and founder of New Money, New Problems in Nashville, Tennessee.

While information provided by AI tools can be a good place to start, be sure to follow reputable sources and get personalized advice from experts such as financial advisors and accounting.