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People use artificial intelligence for tasks like writing and editing resumes and cover letters – and even for personal finance advice. While some of this information can be valuable, financial advisors caution that AI shouldn’t be your only resource.
A new report from Experienced found that 67% of Gen Z surveyed and 62% of Millennials surveyed are use artificial intelligence to help them with their personal finances. Users say generative AI tools like ChatGPT have helped in areas like saving and budgeting (60%), investment planning (48%), and improving credit score (48%). ).
“It’s free. It’s more accessible. It simplifies complex tasks like creating a budget,” said Christina Roman, head of consumer education and advocacy at Experian.
The survey polled 2,011 U.S. adults from August 30 to September 3. Gen Z respondents were aged 18 to 27, while millennials were aged 28 to 43.
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For comparison, about 41% of Gen Xers surveyed, or adults ages 44 to 59, have used or considered using generative AI as a financial tool. The share is lower among the baby boomers surveyed (aged 60 to 78), at 28%.
According to data provided by Experian to CNBC, 98% of Gen Z adults and 98% of millennials have had a positive experience with the software.
While using generative AI can initially help with budgeting or determining how to increase your credit score, always verify information through external resources, experts say.
“We see misinformation about financial matters all the time,” said Dawn C. Abernathy, a certified financial planner with Core Planning in Chesterfield, Missouri. She also has a background in software engineering and management.
“I worked in technology for several years and had to solve some very difficult problems…I will look at any answer that comes from any tool,” Abernathy said.
Pros and cons of using AI for financial advice
Artificial intelligence can be useful or beneficial for “very simple answers,” Abernathy said.
For example, you can enter the approximate amount of your monthly bills and ask the AI to create a budget that helps you save a particular amount, Roman said.
However, artificial intelligence tools may fall short when it comes to more complex areas like investment advice and tax optimization. On these topics, AI could offer a starting point, but you would benefit from a financial advisor to help answer specific questions and offer personalized advice, Roman said.
“When it comes to creating a solution for a client,” Abernathy said, “at this point I would not trust an AI tool to actually generate the final solution. I would definitely have to check and review that very carefully.”
If you plan to use AI tools, be sure to insert specific personal and financial information into the software. Otherwise, you are putting your privacy at risk.
“Make sure you’re safe with the information you’re passing to the AI,” Roman said.
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If you’re considering using AI for your finances, be sure to check the answers you get against other verified sources, experts say.
“The risk is relying too much on something you haven’t studied,” said Brenton Harrison, CFP and founder of New Money, New Problems in Nashville, Tennessee.
While the insights provided by AI tools can be a great starting point, be sure to follow up with reputable sources and get personalized advice from experts like financial advisors and accountants.