Would you rely on AI to manage your money? Fifty-two percent of Americans use AI chatbots like OpenAI’s ChatGPT and Google’s Bard for personal finance, according to a new Credello survey on use of AI-chatbots for money guidance of 1,000 people aged 18 to 54. These results are surprising considering the fact that chatbots typically offer disclaimers such as “I am not a financial advisor” when prompted to share financial advice.
If you’re wondering just how and why people turn to artificial intelligence for money management, here’s what you need to know about Credello’s survey findings.
The top three use cases for AI and personal finance
The most popular ways to use AI chatbots for personal finance are to help understand financial terms (28% of respondents), for budgeting (22% of respondents), and for stock recommendations (17% of respondents). Several respondents are also finding it helpful for managing debt, (15%), finding the right financing option (14%), or shopping for a credit card (13%).
When asked about the benefits of using AI chatbots for personal finance instead of more traditional methods, two-thirds of people surveyed said that tools like ChatGPT trump other approaches when it comes to faster and quicker access to information. Sometimes you just want digestible information on the spot without having to read a book or schedule an appointment with a financial advisor, and AI chatbots can help address that need.
People are concerned about data privacy but still trust AI chatbots
With 52% of Americans using AI chatbots for money management and another 32% of them considering it in the future, it’s fair to wonder if there are concerns about relying on AI for personal finance.
Nearly half of people surveyed (48%) are highly concerned about data and privacy while 41% expressed high skepticism about the newness/experimental nature of this technology. That said, half of respondents also reported a medium degree of trustworthiness when it comes to the information that AI chatbots deliver. In other words, people do have some worries but they’re still willing to give AI a shot in terms of managing their finances.
Key generational and gender differences at play
Women are a little more reluctant to use AI chatbots for personal finance: About 43% of women use it vs. 69% of men. Why? The women who are avoiding tools like ChatGPT for money management listed being unsure about how it works (48%), preferring human interaction (47%), and having data privacy concerns (43%) as factors behind their choice.
As for men, the ones who have used AI chatbots to manage their money have more confidence in the technology than women – nearly 33% of them have high confidence in the results offered by chatbots vs. 23% of women.
There are also generational differences to note. Younger people are – perhaps unsurprisingly – using AI chatbots for personal finance more than older generations: 64% of respondents aged 25-34 have used it while only 36% of respondents aged 45-54 have tried it. How come? Over half of respondents between 45 and 54 said they were avoiding AI for personal finance due to being unsure about how it works.
Despite the controversy surrounding them, AI chatbots are becoming popular personal finance tools. Only time will tell whether this trend will stick, but people are finding interesting ways to use AI for money management so far.