AI Tools Transforming Personal Finance in the UK
Recent research from Finder indicates that 40% of Britons, equivalent to approximately 21.3 million people, are utilizing generative AI tools like ChatGPT or Gemini for personal finance advice. This shift highlights the growing reliance on technology for managing financial matters.
Growing Acceptance of AI in Finance
Interestingly, a quarter of the British population (25%) has not yet tapped into these technologies but plans to do so, indicating that a significant portion of the population is open to the idea. Overall, this means that 65% of Britains have either used AI for personal finance or are considering it. Nevertheless, 35% remain skeptical about the integration of AI in financial services, reflecting a divide in user sentiment.
Budgeting: The Most Popular Use of AI Tools
When it comes to specific applications, budgeting emerges as the most popular reason for using AI tools. Around 19% of British adults have employed AI for creating personal budgets, while an additional 31% express interest in using such tools for budgeting purposes. This demonstrates a notable trend towards embracing technology for financial planning.
Side Hustles and Alternative Income Streams
Besides budgeting, AI tools are also being used for guidance on managing side hustles. Approximately 18% of British adults have sought advice from AI regarding supplementary income avenues, which include selling items online, freelancing, and tutoring. This trend reflects a growing entrepreneurial spirit among citizens.
Understanding Credit Scores and Savings Advice
AI tools are also providing valuable insights into credit scoring, with 17% of users seeking assistance in understanding and improving their credit scores. Additionally, nearly 17% have turned to AI for savings advice, showcasing the technology’s role in everyday financial literacy.
Investments and Cryptocurrency Insights
Furthermore, around 16% of users have utilized AI for stock market advice, while 15% have sought insights into cryptocurrency investments. This raises questions about the reliability of AI in making significant financial decisions, given the volatile nature of these markets.
Expert Opinions on AI’s Role in Financial Decisions
George Sweeney Dipfa, a personal finance and investment expert, shared his insights: “The significant number of individuals turning to AI for financial advice emphasizes the urgent need for accessible financial guidance. While AI can assist millions in managing daily financial tasks, it should not be solely relied upon for critical budgeting and life decisions.”
Sweeney added, “It is concerning that many turn to tools predominantly designed for mass consumption, which may not offer personalized advice tailored to individual circumstances. It’s essential to combine AI-generated advice with personal research and seek consultation from qualified financial advisors before embarking on crucial financial commitments.”