TLDR: Amidst personal financial struggles, individuals are increasingly turning to AI chatbots like ChatGPT for budgeting, debt management, and investment advice. A survey by Intuit Credit Karma indicates that two-thirds of generative AI users sought financial guidance, with 80% reporting improved situations. However, experts caution against over-reliance due to potential inaccuracies and the risk of sharing sensitive data.
In an era where financial stability remains a significant concern for many, a growing number of individuals are exploring unconventional avenues for monetary guidance, with artificial intelligence (AI) chatbots like ChatGPT emerging as a prominent tool. Recent reports highlight how people facing various financial predicaments are utilizing these AI platforms to navigate their economic challenges, from managing credit card debt to strategizing stock market investments.
Myra Donohue, a 28-year-old human resources administrator from Grass Valley, California, found herself overwhelmed by $5,000 in credit card debt, car payments, and other bills, especially after her partner was laid off. Despite her accounting background, the task of creating a personalized financial plan seemed daunting. Inspired by a Facebook post on a seven-step financial approach, Donohue turned to ChatGPT. She inputted her income and fixed expenses, and within seconds, the AI chatbot generated a tailored, zero-based budget. While the advice itself wasn’t surprising, the speed and personalization provided a much-needed boost to her financial confidence. “It was really about me getting back on the horse,” Donohue stated, emphasizing her desire for professional-grade service without the cost.
This trend is not isolated. A survey conducted by Intuit Credit Karma involving over 1,000 individuals revealed that two-thirds of adults who have used generative AI (Gen AI) have sought financial advice from it. Encouragingly, approximately 80% of those who acted on the AI’s recommendations reported an improvement in their financial situation. Younger generations, particularly Generation Z and millennials, show even greater receptiveness, with about 82% of AI users in these demographics utilizing it for financial guidance.
Jennifer Allan, a 35-year-old real estate agent in Clayton, Delaware, with a newborn and no paid maternity leave, accumulated $23,000 in credit card debt. Realizing her reliance on ChatGPT for other aspects of her life, she prompted the chatbot for help. Allan embarked on a 30-day challenge, asking ChatGPT daily for tasks to raise money and reduce debt. Her efforts included selling a watermelon with her debt total tattooed on it for $51, recovering $700 from an unclaimed-property registry, and donating plasma for $80. She also saved nearly $600 by preparing meals from pantry items. Allan, who documented her journey on TikTok, successfully paid off almost half of her credit card debt and even received suggestions from ChatGPT to contact credit card companies for balance reduction.
For Kathryn Aguilo, a 30-year-old kindergarten teacher, ChatGPT became instrumental in budgeting for her 180-person wedding in 2024. The chatbot advised cutting down on dining out, setting a $40 limit for meals, and avoiding bar tabs, along with using cash instead of cards. Post-wedding, Aguilo leveraged ChatGPT to create an expense tracker and budget for a home down payment, eventually closing on a two-bedroom house in January. She continues to seek AI advice for accelerating her 30-year mortgage payments. “I do really just use it intentionally for saving, budgeting and to help us,” Aguilo clarified.
Beyond budgeting and debt, some individuals are using AI for investment strategies. Alexander Stuart, 32, sought ChatGPT’s guidance to learn stock investing, aiming to become a “great trader.” With an initial investment of $400, the chatbot helped him devise trading strategies, including risk management and optimal buy/sell timings. Following AI’s recommendation for chipmaker AMD, Stuart claims his investment doubled on the same day, boosting his Robinhood account to around $1,600.
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However, this reliance on AI is not without its perils. Financial experts urge caution, as chatbots may not challenge underlying assumptions or gather crucial context, leading to potentially poor decisions. The Credit Karma survey found that over half of Americans who acted on Gen AI financial advice made a mistake or a poor decision. Stuart himself experienced a setback, losing nearly $60 on an Nvidia trade after realizing ChatGPT cited outdated information. He now manually verifies data and compares advice from multiple chatbots like ChatGPT and Grok. Furthermore, uploading personal financial documents, as Allan did with bank statements, poses privacy risks, with advisers recommending against sharing sensitive information like Social Security numbers with chatbots. Despite these warnings, the accessibility, speed, and often free nature of AI chatbots make them an attractive, albeit cautious, option for many navigating their financial landscapes.
