More than a third of Americans use AI to manage finances

O BMO The Real Financial Progress Index reveals that a growing number of Americans, particularly Gen Z, are increasingly using AI to manage their finances and investments.

Among the 37% of Americans who use 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 their finances, about two-thirds (64%) say AI fails to understand how emotions influence financial planning.

“AI offers great potential in how 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 US 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 toward their goals and make real financial progress.”

How Americans are using AI

The research highlights how AI continues to shape the way Americans learn, work and communicate, including:

• Reframing 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% use AI to create 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 editing photos and/or videos (42%)
• Accessible intelligence: More than half believe AI can help people make more informed financial decisions (53%) and make financial planning more accessible for everyone (52%).
• Optimistic outlook: Among Americans who do not use 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 to navigate life changes, the majority are leveraging AI to plan for upcoming financial milestones — more than any generation. Gen Z is 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 past six months, 22% of Gen Zers have made a major purchase, such as a car, home, etc., 18% have attended college or university, 15% have changed jobs, and 13% have started a business. However, 85% of Gen Zers say that concerns about their overall financial situation are the main source of financial anxiety, followed by fears 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 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 financial information from BMO and other companies, including mortgages, checking and savings accounts, credit cards, investments, loans and more.
• BMO SmartProgress: A free online personal financial education platform that breaks down complex financial concepts such as investing, retirement planning, home ownership and credit management.
• BMO CreditView: No-fee, no-impact access to your credit score so you can start monitoring and building credit to save more by getting better interest rates on a home loan or auto loan.
• BMO Savings Builder Account: Get rewarded 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 allows customers to easily access personal finance advice and guidance, as well as tools and resources to achieve their own specific financial goals.

About the BMO Real Financial Progress Index

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

The survey 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 older in the United States was collected through the Ipsos panel. Quotas and weights were used to ensure that the composition of the sample reflects that of the U.S. population as measured by census parameters. This survey has a credibility interval of +/- 2.4 percent 19 times out of 20, of what the results would have been if all U.S. adults aged 18 and older had been surveyed.

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