Artificial Intelligence has taken the world by storm. Here’s how Americans are using it to help with their finances
Artificial Intelligence (AI) has had many breakthroughs in the past few years, and more and more households are beginning to incorporate it in their daily routines. The BMO Real Financial Progress Index reveals a growing number of Americans, notably Gen Z, are increasingly using AI to help manage their finances and investments.
Among the 37% of Americans using AI to help manage their finances, the most common uses include:
- Learning more about personal finance topics (49%),
- Creating and/or updating household budgets (48%)
- Identifying new investment strategies (47%)
- Building savings (47%)
- Creating and/or updating their financial plans (46%).
While AI is helping Americans manage some aspects of finances, around two thirds (64%) say AI cannot understand how emotions influence financial planning.
“AI offers great potential in the way we handle our finances, providing real-time insights and analysis. However, managing money is more than analytics; it is a deeply personal relationship shaped by emotions, experiences, and unique life circumstances. While AI handles technical aspects and routine tasks, a professional advisor brings a human touch, offering personalized guidance and understanding. Together, they create a holistic approach to financial management, ensuring more Americans stay on track towards their goals and make real financial progress.”
– Paul Dilda
Head, U.S. Consumer Strategy, BMO
How Americans Are Using AI
The survey highlights how AI is continuing to shape how Americans learn, work, and communicate, including:
- Reshaping Research: Nearly three in five (59%) are using AI to ask questions about topics of interest and 40% are using the technology for data analysis.
- Productivity Planning: 39% leverage AI to build business, travel, exercise and meal plans and/or manage their schedules.
- Changing Content Creation: Many Americans are using AI in their creative process including developing written drafts (43%) and photo and/or video editing (42%)
- Accessible Intelligence: More than half believe AI can help people make more informed financial decisions (53%) and makes financial planning more accessible for everyone (52%).
- Optimistic Outlook: Among Americans not using AI for their finances, nearly a third are considering using the technology to learn more about personal finance topics (32%), increase their savings (31%), find new investment strategies (29%), create and/or update their household budgets (29%) and financial plans (27%), and/or for retirement planning (27%).
The AI Generation Gap
As Gen Z Americans begin navigating life changes, most are leveraging AI to plan for upcoming financial milestones – more than any generation. In fact, Gen Z are the most likely to use AI to ask questions about topics of interest (82%), create written drafts (75%), build business, travel, exercise and/or meal plans (67%), and manage their finances and investments (61%).
In the last six months, 22% of Gen Z needed to make a large purchase such as a car, home, etc., 18% attended university or college, 15% switched jobs, and 13% started a business. However, 85% of Gen Z say concerns about their overall financial situation is the leading source of financial anxiety, followed by fear of unknown expenses (80%), housing costs (79%) and keeping up with monthly bills (76%).
Still, 58% of Gen Z believe AI can help people make more informed financial decisions and 55% are confident AI tools can help them make real financial progress. Among the 89% of Americans who believe they are making real financial progress (4+ on 10-pt scale), 82% are confident in their financial situation and 45% believe AI-powered tools can help them make real financial progress.
Learn more about how BMO can help customers make real financial progress.