82% trust AI for financial information and guidance

An extremely large proportion of people trust AI with financial information and guidance, probably more than they should. 

Recent survey data from financial comparison platform BestMoney found that a huge number of people are using AI for financial advice. It found that 82% trust AI for financial information and guidance, 58% said they have actually used AI to seek information or guidance on finance, and 82% say they are doing so more frequently than 12 months ago. While people ask AI about all sorts of financial topics, the three most common types of queries have to do with investing, budgeting and saving, followed by taxes, then retirement planning. 

The poll found people are also taking action on this advice. Data shows that 76% have actually taken action or made a financial decision based on AI guidance. Of those people, 65% said the result was good. Consequently, the poll found that 64% said their finances have improved since using AI and 74% said they feel more confident with finance since using AI. 

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As for why, the main reason is speed: 63% cited the speed at which one can get an answer as their reason for turning to AI for financial advice, while 56% cited cost and 55% cited responsiveness. Then, in fourth place, there was a noticeable drop: only 29% said they turned to AI because of the quality of its advice, and only 19% said it was because they thought AI was more private. 

While people generally are not turning to AI for every last matter, they are using it a lot. The poll found that half of the respondents use AI for financial advice "some of the time," while 29% use it "most of the time" and 7% use it "all the time." On the other side, 14% use it "rarely." 

Readers may wonder why people are turning to AI versus their accountants, many of whom have access to specialized AI tools themselves. The poll found, however, that nearly one in two respondents believe AI is superior to all the people in their life when it comes to asking for financial information and guidance. This is further reflected in the 32% of people who said the financial advice given to them by AI "has never fallen short." This response was outdone only by the 38% who complained that AI advice is "too generic." 

The results echo data in a survey last year from Pearl.com, an AI professional service platform, which found 27% believe AI can give them all the financial advice they'd ever need. This is despite the fact that the Pearl poll also found that  20% of people have acted on financial advice given to them by AI, and 19% of people reported losing $100 or more due to following this advice. Similar to those citing "cost," many of those in the Pearl poll felt professional services were too expensive, so even if they wanted to talk to a human accountant about something, they believed they would not be able to afford it. 

But another factor could be declining trust in experts overall. While not strictly accounting-related, the Pearl survey did find that 37% said their trust in doctors declined over the past year, a figure that jumped to 41% for men. It also found that 22% trust social media influencers' advice more than doctors' advice, 23% trust AI medical advice more than doctors, and 28% trust their family's medical advice more than doctors. 

The BestMoney report suggested that people may be putting a little too much faith in AI. 

"AI is a fantastic way to educate yourself and get quick answers to simple financial questions, and we encourage people to use it that way," said Yoni Cohen, senior editor at BestMoney, in the report. "But when it comes to making big decisions that affect your life and family, a professional can bring experience, judgment and nuance that no AI tool can fully replicate."

Other data bears out this recommendation. The aforementioned Pearl poll found that 20% of people have acted on financial advice given to them by AI, and 19% of people reported losing $100 or more due to following this advice. Similarly, a poll from Credit Karma found that, of those who seek out financial advice from generative AI, 85% have acted on the recommendations given to them and, while 80% say their financial situation has improved thanks to gen AI, 52% say they have made a poor financial decision or mistake based on the information they received.