AI-Powered Financial Tools Gain Popularity Among Consumers
In a recent survey conducted by financial comparison platform BestMoney, nearly half of the participants (49%) expressed that AI-driven financial tools are “better than any people in their lives” for financial information and guidance. This survey, carried out in November 2025 by polling firm Prolific, included 1,252 adults aged 18 to 79. The insights reveal how the reliance on AI for financial advice is shaping people’s financial decisions.
Usage Trends in AI for Financial Guidance
According to the findings, 50% of respondents occasionally rely on AI for financial advice, while 29% utilize it most of the time. An impressive 82% noted an increase in their use of AI for financial purposes over the past year. Overall, 71.8% reported making financial decisions based on AI insights, with nearly one in eight (11.9%) indicating they took “significant steps” in retirement planning due to AI feedback. The survey identified budgeting (29.5%), investing (24%), and saving (22.8%) as the top three financial decisions influenced by AI.
Limitations of AI Financial Advice
Despite its growing use, participants noted several shortcomings of AI financial advice. The most common criticisms included responses being too generic (36%), lacking context (25%), incomplete information (23%), and making assumptions (19%). These limitations highlight the challenges that users face, emphasizing the need for both AI tools and human financial advisors.
AI’s Role in Retirement Planning
The survey indicates that AI is becoming a pivotal element in retirement planning. More than a third (36%) of respondents have used AI to gain insights into retirement strategies. Notably, investing remains the foremost financial topic explored through AI, cited by 61%, with retirement planning taking the second spot, ahead of cryptocurrencies and self-employment (both at 30%).
Why Consumers Prefer AI for Financial Advice
Respondents highlighted several reasons for turning to AI tools for financial advice. The leading factors were speed (63%), cost-effectiveness (56%), and responsiveness (55%), while concerns over information quality (29%) and privacy (19%) were less prominent. Remarkably, 74% of users reported a boost in their financial confidence by employing AI as a financial assistant.
Income and Generational Insights
Income levels played a significant role in determining trust in AI financial advice. Among those earning at least $125,000 annually, 96% expressed confidence in AI, while the overall trust level was 82%. This income group also reported the highest levels of satisfaction, with 51% achieving “excellent” financial results due to AI, compared to just 33% overall. Millennial respondents indicated a notable improvement in financial well-being (65%) and confidence (73%), while Baby Boomers displayed the least improvement, with only 51% and 65%, respectively. Interestingly, 64% of Gen Z said their financial well-being had improved, though they showed slightly lower confidence levels compared to Millennials.
The Future of AI in Financial Decisions
Despite the benefits, over a quarter (27.5%) of Gen Z respondents do not expect to rely more on AI for financial guidance in the future, a sentiment echoed by 22% of Baby Boomers and only 16% of both Millennials and Gen X. Reflecting on these findings, Yoni Cohen, editor-in-chief at BestMoney, noted that while AI-based financial tools can be convenient, the personalized touch of human advisors often provides more relevant insights.
“AI can be a great starting point for knowing your options, but real information from an authoritative source can connect the dots in a way that a generic tool simply can’t do,” Cohen remarked. He emphasized the importance of consulting with professionals to carefully consider individual goals and risks, leading to more sustainable financial decisions in the long run.