Over a Third of Americans Use Artificial Intelligence to Manage Finances

THE HOMO The Real Financial Progress Index reveals that a growing number of Americans, particularly Generation Z, are increasingly using artificial intelligence to manage their finances and investments.

Among the 37% of Americans who use AI to 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%), and creating and/or updating their financial plans (46%). While AI does help Americans manage some aspects of finances, nearly two-thirds (64%) say AI fails to understand how emotions affect financial planning.

“AI offers great potential in the way we manage our finances, providing real-time insights and analysis. However, managing money is more than analysis; it is a deeply personal relationship shaped by emotions, experiences and unique life circumstances,” said Paul Dilda, head of U.S. consumer strategy at BMO. “While AI handles the technical aspects and routine tasks, a professional advisor brings a human touch, offering personalized guidance and insight. Together, they create a holistic approach to financial management, ensuring more Americans stay on track toward their goals and make real financial progress.”

How Americans Are Using Artificial Intelligence

The survey highlights how artificial intelligence continues to shape the way Americans learn, work and communicate, including:

• Reshaping search: 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% use AI to create business, travel, workout, and meal plans and/or manage their schedules.
• Shift in content creation: Many Americans are using AI in their creative process, including developing written drafts (43%) and editing photos and/or videos (42%)
• Accessible Intelligence: More than half of respondents believe that AI can help people make more informed financial decisions (53%) and make financial planning more accessible to all (52%).
• Optimistic Outlook: Among Americans who are 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 Generation Gap of Artificial Intelligence

As Americans in Gen Z begin to navigate life changes, the majority are leveraging AI to plan their next financial milestones, more than any other generation. Gen Z is most likely to use AI to ask questions about topics of interest (82%), create written drafts (75%), create business, travel, exercise and/or food plans (67%), and manage their finances and investments (61%).

In the past six months, 22% of Gen Z have had to make a major purchase such as a car, house, etc., 18% have attended college or university, 15% have changed jobs, and 13% have started a business. However, 85% of Gen Z say that worries about their overall finances are the main source of financial anxiety, followed by fear of unknown expenses (80%), housing costs (79%), and keeping up with monthly bills (76%).

58% of Gen Z believe AI can help people make more informed financial decisions, and 55% believe AI tools can help them make real financial progress.

Making Real Financial Progress with BMO Digital Tools

Among the 89% of Americans who believe they are making real financial progress (4+ on a 10-point scale), 82% are confident in their financial situation, and 45% believe AI-powered tools can help them make real financial progress.

BMO offers the following savings tools and resources to help customers:

• BMO Total Look: Customers can easily view, track and manage their BMO and non-BMO financial information, including mortgages, checking and savings accounts, credit cards, investments, loans and more.
• BMO SmartProgress: A free online personal finance education platform that breaks down complex financial concepts like investing, retirement planning, homeownership, and credit management.
• BMO CreditView: Fee-free, zero-impact access to your credit score, so you can start tracking and building your credit to potentially save more by getting a better interest rate on a home or car loan.
• BMO Savings Builder Account: Get rewards for reaching specific savings milestones, set and track personalized financial goals, and monitor your progress.
• BMO Real Financial Progress Hub: A free digital resource that provides clients with easy access to personal finance advice and guidance, as well as tools and resources to achieve their specific financial goals.

About the BMO Real Financial Progress Index

Launched in February 2021, the BMO Real Financial Progress Index is a gauge of how consumers feel about their personal finances and whether they are making financial progress. The index aims to spark a conversation that will help consumers reach their financial goals and humanize a topic that causes anxiety for many: money.

The research detailed in this document was conducted by Ipsos in the United States from May 31 to June 21, 2024. A sample of n=2,501 adults aged 18 and over in the United States was collected through the Ipsos panel. Quotas and weightings were used to ensure that the composition of the sample reflected that of the U.S. population according to the census. This survey has a credible interval of +/- 2.4 percent 19 times out of 20, compared to what the results would have been if all U.S. adults aged 18 and over had been surveyed.

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