Millennials and Gen Z Using AI for Finance Management, but Advised to Use Caution

Utilizing Artificial Intelligence for Financial Advice

The popularity of artificial intelligence (AI) for tasks such as resume creation, cover letter editing, and personal financial advice is growing. However, financial advisors assert that relying solely on AI as a financial resource isn’t advisable.

AI for Personal Finance: A Growing Trend

An intriguing report by Experian reveals that a significant number of Gen Zers (67%) and millennials (62%) are employing artificial intelligence for personal finance management. Users find AI tools like ChatGPT beneficial in areas like budgeting, saving, investment planning, and credit score improvement.

AI’s Appeal for Financial Management

Why is AI gaining traction for personal finance management? The reasons are simple: it’s free, accessible, and simplifies complex tasks such as budget creation, according to Christina Roman, consumer education and advocacy manager at Experian.

Gen Z and Millennial’s Positive Experiences with AI

Experian’s survey, which polled 2,011 U.S. adults, indicated that 98% of Gen Z adults and 98% of millennials had positive experiences with AI-based financial tools. However, experts advise cross-verifying the information obtained from AI with other reliable resources.

Cautions About Using AI for Finance

Despite the AI’s utility for generating straightforward financial solutions, Dawn C. Abernathy, a certified financial planner at Core Planning, notes the potential for misinformation. Thus, even with AI’s assistance, it’s essential to double-check any financial advice generated by AI tools.

AI’s Limitations in Providing Financial Advice

Artificial intelligence shines in providing simple solutions. However, for complex financial areas like investment advice and tax optimization, AI might not suffice. In such scenarios, a financial advisor’s personalized advice could be indispensable, Roman notes.

Privacy Concerns When Using AI for Finance

While AI tools can add value to personal financial management, users must remain cautious about the specific personal and financial details they input into the software to avoid privacy risks.

Verifying AI-generated Financial Advice

Critical to utilizing AI for your finances is verifying the AI-generated advice against other reliable sources. The information provided by AI can be an excellent starting point, but it’s crucial to corroborate it with reputable sources and seek personalized advice from experts like financial advisors and accountants.