published : 2023-08-26

AI in Demand for Personal Financial Management, Research Suggests

Increasing Number of US Citizens Trust AI with their Finances

A close-up shot of a person interacting with an AI interface on their digital tablet, depicting the increasing trust in AI for personal finances. Taken with Canon EOS 5D Mark IV.

As Artificial Intelligence (AI) permeates several sectors, a new study has thrown light on its rising popularity in a very personal area of life: finance. According to the study by Qualtrics on behalf of Intuit Credit Karma, Americans are wholeheartedly interested in utilizing the benefits of generative AI for personal financial management.

Breaking down the data, it appears that 40% of respondents expressed that personal finances were an area where they could use the guidance of generative AI. Health, food and nutrition, and workplace productivity were other significant areas that garnered interest.

Supriya Gupta, Vice President of product at Credit Karma, explained that generative AI democratizes access to financial assistance. This help can be crucial for a large number of Americans who need guidance in financial management, particularly those dealing with daily money matters with limited access to often expensive financial advisors.

Of those surveyed, a significant 38% admitted to having unanswered questions about managing their money. Intriguingly, 43% said they would be open to using generative AI to manage their finances and solve these problems.

An over-the-shoulder view of a user examining multiple financial accounts on their computer, illustrating the desire for a complete financial overview. Taken with Nikon D850.

The trust in AI increases further among users already familiar with generative AI, with this number jumping to 57%. If properly used, a significant number of Americans seem ready to trust this technology more than humans to manage their finances.

Respondents, familiar with AI tools, acknowledged their power and potential to provide a comprehensive overview of their financial status. In turn, many said they found this appealing enough to consider integrating AI for their personal finance management.

The survey also gave insights into the American financial goals that consumers want AI to help achieve. The data pointed towards assistance with paying down debt, budgeting, managing expenses, and plans for retirement and savings optimization.

Convenience appeared to play a significant role in AI's appeal. The surveyed consumers appreciated the 24/7 availability of AI-based financial advice. 44% liked the idea of accessing answers at any time, and 30% expressed the desire to instantly understand their overall financial position across multiple accounts and investments.

A detailed image of a secure and encrypted data stream, symbolising the essential need for security and privacy in the use of AI in personal finance. Taken with Sony a7R IV.

But, not everything was rosy regarding the use of AI. Several users flagged issues such as a lack of personalization, inconsistent quality, and redundancy as areas of concern. As much as AI is growing in the finance sector, it still has hurdles to overcome.

To establish trust with an AI platform provider, respondents wanted familiar institutions like banks (30%), tech companies (21%) and personal finance apps (20%) to provide these AI-powered financial management tools. Security and privacy were considered key to build this trust—37% wanted tech regulations and security measures protecting sensitive personal data in place, 35% sought credibility and accuracy of the data used, and 26% desired personalized advice based on their individual financial circumstances.