- 61% of Gen Z use AI to help manage their finances and
investments – more than any other generation.
- 64% do not believe AI understands how emotions influence
financial planning.
CHICAGO, July 29,
2024 /PRNewswire/ - The BMO Real Financial Progress
Index reveals a growing number of Americans, notably Gen Z, are
increasingly using artificial intelligence (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%), and 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," said
Paul Dilda, Head, U.S. Consumer
Strategy, BMO. "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."
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. 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%).
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.
Making Real Financial Progress with BMO's Digital
Tools
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.
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: No-fee, no-impact access to your
credit score so you can start monitoring and building credit to
potentially save more by getting better interest rates on a home or
auto loan.
- BMO Savings Builder Account: Receive rewards for
reaching specific savings milestones, set and track personalized
financial goals and monitor progress.
- BMO Real Financial Progress Hub: A free digital
resource that allows customers to easily access personal finance
advice and guidance, as well as tools and resources to reach their
own specific financial goals.
About the BMO Real Financial Progress Index
Launched in February 2021, the BMO Real Financial Progress
Index is an indicator of how consumers feel about their personal
finances and whether they are making financial progress. The index
aims to spark dialogue that will help consumers reach their
financial goals and to 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 31st to
June 21st, 2024. A sample
of n=2,501 adults ages 18+ in the United States were
collected via the Ipsos panel. Quotas and weighting were used to
ensure the sample's composition reflects that of the American
population according to census parameters. This survey has a
credibility interval of +/- 2.4 per cent
19 times out of 20, of what the results would have been had
all American adults 18+ been surveyed.
About BMO Financial Group
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of
$1.4 trillion as of April 30, 2024. Serving customers for 200 years
and counting, BMO is a diverse team of highly engaged employees
providing a broad range of personal and commercial banking, wealth
management, global markets and investment banking products and
services to 13 million customers across Canada, the United
States, and in select markets globally. Driven by a single
purpose, to Boldly Grow the Good in business and life, BMO
is committed to driving positive change in the world, and making
progress for a thriving economy, sustainable future, and inclusive
society.
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SOURCE BMO Financial Group