Brits are increasingly turning to AI tools to access financial tips as the “advice gap” grows wider.
Two thirds of people are either considering or already using AI tools to gather personal finance advice, new research from financial comparison platform Finder has found.
Two in five people opted to use generative AI, such as ChatGPT or Gemini, with younger generations more likely to do so.
Nearly 60 per cent of Gen Z and Millennials chose AI in favour of traditional advice, such as financial advisers, with many calling the typical advice offered inaccessible due to costs and complexity.
George Sweeney, personal finance spokesperson at Finder said: “The fact that so many people are turning to AI for financial advice isn’t surprising and only further highlights the importance of bridging the financial advice gap.”
Give me a personal budget
Budgeting is the most popular use for AI, with one in five asking an online tool to make them a personal one to prevent overspending.
While the most common-use of AI aims to help people save money, others have been using it to make extra money.
Nearly 20 per cent of users requested tips on how to start a side hustle, including how to sell items online and find freelancing opportunities.
This was closely followed by a want for advice on savings and investments, with 16 per cent using it for stocks and shares tips, while 15 per cent use AI for more information on cryptocurrency.
Alarm bells ringing
However, the growing use of AI for personal finance tips has also raised concerns within the financial services sector, in particular the reliance on tools “designed for the masses” when looking to receive individually tailored advice.
Sweeney said: “It is slightly concerning that two in five Brits are turning to [AI] designed to serve the masses and not provide tailored advice.”
“This may ring alarm bells if these people are new to money management…or if they haven’t taken the time to gain a proper understanding of their own goals and risk tolerance.”