How AI is Transforming Financial Guidance for Young Americans
Younger Americans are increasingly turning to artificial intelligence (AI) for financial advice, replacing the traditional sources of wisdom like parents. Tools such as OpenAI’s ChatGPT and Google’s Gemini have emerged as valuable allies for navigating financial challenges, including managing credit card debt and selecting stocks or exchange-traded funds (ETFs).
The Shift to AI: Financial Advice Reimagined
A survey conducted by Intuit Credit Karma revealed compelling statistics about the role of AI in personal finance. Approximately two-thirds of adults who have sought financial insights from AI reported that they did, in fact, follow the advice given. Notably, 80% of these users claimed that the AI assistance had positively impacted their finances.
However, it’s essential to approach these findings with caution. Over 50% of respondents admitted to making poor financial choices as a result of following AI-generated advice. The landscape is evolving, but it is far from infallible.
Who is Using AI for Financial Guidance?
Millennials and Gen Z are leading the charge when it comes to utilizing AI for financial insights. An impressive 82% of Gen Z and millennial users actively engage with AI tools for money management. The topics of interest vary widely, covering everything from basic personal finance to more specialized areas like tax filing and investment strategies.
Key Areas of Interest Among AI Users:
- Goal Setting and Action Plans (35%)
- Budgeting and Expense Management (34%)
- Optimizing Savings (33%)
- Stock Market Investing (32%)
AI serves not only as a source of guidance but also as a safe space for individuals to ask questions they might be hesitant to pose to others. In fact, 75% of respondents indicated that AI allows them to inquire about financial terms and practices they find embarrassing.
Extreme Financial Strategies: The Pursuit of Wealth
As its applications grow, some users are even utilizing AI for more ambitious financial goals, such as how to become a millionaire. On platforms like TikTok, creators have launched initiatives like the “90-day millionaire challenge,” encouraging viewers to follow AI-generated strategies for achieving financial independence.
A recent report from GoBankingrate highlighted ChatGPT’s response to a question about amassing wealth on a $60,000 salary. The AI claimed that it is feasible to achieve millionaire status through commitment and smart financial choices, suggesting steps like maximizing savings and growing income.
The Risks of Relying on AI for Financial Advice
Despite the appealing nature of AI, several experts caution against relying exclusively on artificial systems for financial guidance. A 2025 study from Investing in the Web discovered that ChatGPT incorrectly answered 35% of financial queries, with one in three responses being classified as hallucinations—an alarming concern for those seeking reliable advice.
Moreover, the risks associated with using AI for financial insights extend beyond misinformation. Experts caution that this reliance could expose users to fraud and identity theft, prompting 51% of Americans to express concerns regarding security and privacy.
Alternative Sources of Financial Advice
While AI is gaining traction as a financial advisor, many individuals are still turning to other resources for guidance. According to the Intuit Credit Karma survey, over half of the respondents are actively seeking financial information online. Notably, a quarter of these individuals consider social media as a reliable source, followed by search engines and, finally, AI tools.
Have you turned to AI for financial advice? We’d love to hear your experiences! Reach out to Jessica Coacci at jessica.coacci@fortune.com.
Conclusion
The usage of AI for financial decision-making among younger Americans is on the rise, but it comes with inherent risks. While the allure of accessible advice is strong, the importance of discerning reliable information cannot be overstated. As AI technology continues to develop, users should remain vigilant and explore a variety of sources for financial guidance.
