AI proving popular with gen Z when it comes to managing finances: Survey

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According to a BMO survey, a third (33%) of Canadians are using artificial intelligence to manage their finances and investments.

BMO’s Real Financial Progress Index also found 45% used AI to learn more about personal finance topics, 43% utilized AI to create and/or update household budgets, 42% leveraged AI to identify new investment strategies, 40% used the technology to build savings and 40% used AI to create and/or update their financial plans.

The survey also said 68% of respondents did not believe AI understands how emotions influence financial planning.

Still, over half (55%) of gen-Z respondents (born between the late 1990s to the early 2010s) use AI to help manage their finances and investments, which was more than any other generation.

The survey said 79% of gen-Z respondents were most likely to use AI to ask questions about topics of interest, 72% to create written drafts, 63% to build business, travel, exercise and/or meal plans and 55% to manage their finances and investments.

“AI is a transformative technology that can instantly analyze information and generate ideas, but people’s relationship with money is complex, personal and emotional,” Gayle Ramsay, BMO’s head of the everyday banking segment and customer growth, said in a statement.

“By making it easier to help manage finances, AI is proving to be a powerful tool to build financial literacy and make informed financial decisions, and together with guidance from a professional adviser, more Canadians can be empowered to conveniently manage their money, achieve their goals and make real financial progress.”

The survey also said more than half (52%) believed AI can help people make more informed financial decisions, 51% thought AI makes financial planning more accessible to everyone, 54% were using AI to ask questions about topics of interest and 37% were using the technology for data analysis.

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Over a third (36%) were leveraging AI to build business, travel, exercise and meal plans, 35% to manage their schedules, 41% were using AI in their creative process including developing written drafts and 39% were utilizing AI in photo and/or video editing.

Of those who do not currently use it for personal financial management, 30% were considering using the technology to learn more about personal finance, 28% to increase their savings, 27% to find new investment strategies, 27% to create and/or update their household budgets, 25% for financial plans and 22% for retirement planning.

Launched in February 2021, the BMO Real Financial Progress Index is an indicator of how consumers feel about their personal finances and whether they are making financial progress.

The survey was conducted by Ipsos in Canada from June 3 to June 20 with 2,500 adults with a credibility interval of plus or minus 2.4%, 19 times out of 20.