The Rise of AI in Personal Finance: Insights from UK Consumers
A recent study from Finder reveals that 2 out of 5 British adults, or 40%, have engaged with generative AI tools like ChatGPT or Gemini for personal finance guidance. This figure translates to approximately 21.3 million individuals in the UK leveraging AI technology to make informed financial decisions.
Growing Acceptance of AI in Financial Planning
The survey further indicates that 25% of respondents have not yet tried AI tools but are open to the idea, leading to a significant 65% of the British population either having utilized AI for finance or being willing to do so in the future. Conversely, 35% remain skeptical about using AI for such critical financial matters.
Budgeting: The Most Common Application of AI
Budgeting stands out as the primary application, with 19% of British adults using AI tools to create personal budgets. An additional 31% indicated they would consider AI for budgeting purposes. This trend highlights an increasing reliance on technology to streamline financial management.
Diverse Uses of AI in Personal Finance
Beyond budgeting, 18% of respondents utilized AI for advice on managing secondary income streams, such as online sales or freelancing. Furthermore, 17% sought AI assistance to comprehend their credit scores and learn how to improve them, indicating a growing interest in financial literacy.
Exploring Investment and Cryptocurrency Advice through AI
AI tools have also gained traction among users seeking stock market insights, with 16% of Brits turning to AI for investment guidance. Additionally, 15% sought advice related to cryptocurrency, raising questions regarding the reliability of such tools for significant financial decisions.
Expert Insights on AI in Finance
George Sweeney Dipfa, Personal Finance and Investment Expert at Finder, remarked:
“The trend of individuals seeking AI for financial advice underscores the existing gap in accessible financial guidance, an area currently under scrutiny by the FCA. While AI aids many in daily financial management, it’s crucial to approach budgeting and significant life decisions with caution.”
“It is concerning that many turn to US-based AI models that are designed for mass use rather than personalized advice. Individuals must prioritize understanding their own financial objectives and risk tolerance before relying solely on AI recommendations.”
“Advice from AI should never be taken as gospel. It’s essential to combine AI insights with personal research and consult a qualified financial advisor before making long-term financial commitments.”
Conclusion: The Future of AI in Personal Finance
As AI continues to shape the landscape of personal finance in the UK, its adoption presents both opportunities and challenges. While many are embracing AI tools for budgeting and investment advice, it is vital for users to approach these technologies with an informed perspective. Balancing AI insights with personal understanding and professional guidance can lead to smarter financial decisions and improved financial well-being for individuals and families alike.