TLDR: A recent study by personal finance comparison site Finder indicates that 40% of Brits, an estimated 21.3 million people, have turned to generative AI tools like ChatGPT or Gemini for personal finance advice. Budgeting stands out as the most popular application, with a significant portion of the UK population either already using or considering these AI tools for various aspects of financial management.
New research from personal finance comparison site Finder reveals a growing reliance on artificial intelligence for financial guidance across the UK. Approximately two in five Brits (40%), an estimated 21.3 million individuals, have utilized generative AI tools such as ChatGPT or Gemini to seek personal finance advice. This trend suggests a significant shift in how people approach managing their money, with a further quarter of the population (25%) considering adopting these tools in the future. This means roughly two-thirds of Brits (65%) are either already using AI for financial advice or are open to the idea, while 35% remain opposed.
Budgeting has emerged as the most popular use case for AI in personal finance, with one in five (19%) UK adults having used AI to create a personal budget. An additional 31% expressed willingness to consider using AI for this purpose. Beyond budgeting, Brits are also leveraging AI for a variety of other financial needs. Around 18% have sought advice on managing or starting side hustles, which include activities like selling items online, freelancing, or tutoring. Understanding and improving credit scores is another common application, with 17% of Brits using AI for this. Similarly, just under 17% have used AI tools for savings tips. The adoption extends to more complex financial areas, as 16% have used AI for stocks and shares tips, and 15% have sought advice on cryptocurrency. The use of AI for investing and cryptocurrency advice, however, raises concerns among experts due to the inherent risks and the unregulated nature of cryptocurrency in the UK.
Demographically, the study highlights that younger generations are more inclined to use AI for financial advice, with 65% of Generation Z and 61% of Millennials reporting usage. Gender also plays a role, as 46% of men have used AI for finance advice compared to 33% of women.
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George Sweeney DipFA, a personal finance and investing expert at Finder, commented on the findings, emphasizing the critical need to address the financial advice gap. While acknowledging AI’s utility for everyday money management, budgeting, and quick savings tips, Sweeney expressed caution regarding its use for ‘potentially life-altering decisions.’ He specifically warned against relying solely on ‘US-built LLMs designed to serve the masses and not provide tailored advice,’ particularly for individuals new to money management or those venturing into investing without a clear understanding of their financial goals and risk tolerance. Sweeney advised individuals to supplement AI-generated tips with their own thorough research, compare various options, and consult a qualified financial advisor before making any significant, long-term financial commitments.
