Generative AI as a Financial Tool
Nearly two-thirds of U.S. adults who have tried generative AI have used it for financial guidance, according to a Credit Karma survey reported by the New York Times. Most respondents said the tools improved their situation, particularly younger users, with more than 80% of Gen Z and millennials tapping chatbots like ChatGPT or Google’s Gemini for budgeting, saving, or investing.
Success Stories and Risks
Some users reported notable benefits. Myra Donohue, 28, said she used ChatGPT to create a budget when her family faced debt and unemployment, calling it a free alternative to professional help. Delaware real estate agent Jennifer Allan turned her debt battle into a viral 30-day TikTok challenge, following AI prompts that included donating plasma, reclaiming unclaimed funds, and even selling a watermelon with her debt amount written on it. She managed to cut her credit card balance nearly in half.
Others experienced setbacks. Alexander Stuart used chatbot advice to learn stock trading. While his initial trades earned returns, he later lost money after the AI delivered outdated financial data. Financial advisers caution that chatbots often take questions literally, may omit important details, and should not replace certified professionals.
Why Users Embrace AI
Despite potential pitfalls, many Americans turn to AI for its speed, accessibility, and anonymity. The tools offer a low-cost, judgment-free way to address money concerns that people might otherwise avoid discussing with a financial adviser. While success stories highlight AI’s potential to inspire better habits, the high rate of reported mistakes underscores the importance of skepticism and cross-checking advice with reliable sources.
