Young Americans twice as likely to use AI for financial advice

3 min read

As the artificial intelligence boom continues, a new survey finds that younger adults are twice as likely to rely on AI for financial advice compared to older adults.

According to a Yahoo Finance/Ipsos survey of 1,276 Americans, 20% of Gen Z adults said they were somewhat or very likely to use an AI-powered financial advisor, compared to 9% of Baby Boomers and those older. Some 18% of millennial investors and 17% of Gen X investors said they’d be likely to use an AI financial advisor.

The results suggest that younger adults, while still in small numbers, are gradually embracing AI as a reliable financial tool.

The survey comes amid a fast-moving “gold rush” in companies developing generative AI chatbots to power consumer-facing services. For example, JPMorgan Chase applied to trademark an AI investment adviser product similar to ChatGPT, which would be equipped to provide customer advice on investments.

Some financial advisors are apprehensive about the risks of AI and its ability to substitute their work, while others have already brought AI into their daily work for uses like marketing, client communications, and tax planning.

Across age groups, adults surveyed by Ipsos had around the same level of trust in banks like Chase and Wells Fargo to develop a financial AI, with 23% of those surveyed saying they “moderately” trust banks or trust them “a great deal.”

20% of adults aged 18 to 49 said they were somewhat or very likely to use an AI-powered financial advisor.  (Photo by OLIVIER MORIN/AFP via Getty Images)

20% of adults aged 18 to 49 said they were somewhat or very likely to use an AI-powered financial advisor. (Photo by OLIVIER MORIN/AFP via Getty Images)

Younger adults had more nuanced feelings towards AI across other questions measured by the survey.

For example, while no generation said they trust AI a “great deal” to advise them on finances, Gen Z is more likely to say they trust it “slightly” compared to other generations. However, Gen Z and millennials were also more likely to say that their top concern with AI was inaccurate information.

The same pattern was observed for trust in financial brokers such as JPMorgan and Fidelity developing a financial AI.

Young adults have slightly more trust than older adults — 14% to 12% — in financial news websites to do the same. They also reported higher levels of trust in financial services websites like Bankrate — and 18% said they trusted big tech to develop financial AI, compared to 11% of those 50 and older.

The results point to a gradually changing landscape in how people use AI amid the AI ​​stock market boom, which is providing positive signs for investors.

Jared Mitovich is a writer at Yahoo Finance. Follow him on Twitter @jmitovich

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