But around two-thirds acknowledge AI limitations, agreeing that it is incapable of factoring human emotion into the financial equation
A new Ipsos poll conducted on behalf of BMO finds that almost two in five (37%) Americans are already using AI to manage their finances, including three-fifths (61%) within the emerging Gen Z cohort. Three in five (59%) Americans are using AI to ask general questions about topics of interest, while significant proportions are using it to assist with the development of written drafts (43%), photo and/or video editing (42%), data analysis (40%), schedule management (39%), and/or plan building (39%).
The most common AI applications to finance, among the one in three who report using it for this purpose, include: learning more about personal finance (49%), creating and/or updating household budgets (48%), identifying new investment strategies (47%), building savings (47%), and creating and/or updating financial plans (46%). The use of AI in financial management and planning is likely to grow with time, as significant proportions of non-users express a willingness to adopt AI tools to learn more about personal finance topics (32%), building savings (31%), , developing new investment strategies (29%), retirement planning (27%), and creating or updating budgets (29%) and/or financial plans (27%) in the future.
Around two-thirds (64%) of Americans do not believe AI can understand how emotions influence financial planning. Despite this sentiment, majorities think AI helps direct informed financial decision-making (53%) and/or makes financial planning more accessible for everyone (52%). What’s more, of the nine in ten (89%) who believe they are making real financial progress (4+ on 10-pt scale), over four-fifths (82%) are confident in their financial situation and almost half (45%) believe AI-powered tools can help them make real financial progress.
Gen Z Lead as AI Adopters
Gen Z are leading as adopters of AI, as they join the economy, with their usage going beyond the aforementioned financial management applications. In fact, most within the Gen Z cohort report using AI to ask questions about topics of interest (82%), create written drafts (75%), and/or build business, travel, exercise and/or meal plans (67%). To some extent, Gen Z might be leveraging AI to support their ongoing life changes, as significant proportions within this cohort report having made a large purchase such as a car, home, etc. (22%), attended university or college (18%), switched jobs (15%), and/or started a business (13%) within the past six months.
Most Gen Z report they have at least some anxiety regarding their overall financial situation (85%), the prospect of unknown expenses (80%), housing costs (79%), and/or keeping up with monthly bills (76%).However, majorities within Gen Z perceive AI as supporting the mitigation of these concerns, as around three-fifths (58%) believe AI can help people make more informed financial decisions with around similar proportions (55%) expressing confidence that AI tools can help them make real financial progress.
About the Study
These are the findings of an Ipsos survey conducted on behalf of BMO. Fieldwork was conducted between May 31 and June 21, 2024. A total of n=2,501 Americans aged 18+ participated in the survey which was fielded via the Ipsos’ panel. Quotas and weighting were used to ensure the sample’s composition reflects that of the American population according to census parameters. This survey has a credibility interval of +/- 2.4 per cent 19 times out of 20, of what the results would have been had all American adults 18+ been surveyed.
