Developing a good financial plan requires a mix of different resources, from one-on-one human advice to high-tech tools. Among the latter options is artificial intelligence, which is being embraced by a rising number of people as a way to improve their finances.
Nearly half of Americans (47%) feel “more comfortable” using artificial intelligence in their finances compared to a year ago, according to a new survey of 1,009 U.S. adults conducted by Empower. Although more than six in 10 respondents (62%) said the human component of financial advice is “more important” than AI, a similar percentage (61%) said they would use AI to complement human financial advisors.
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The Empower results are similar to separate studies conducted by other organizations. Research conducted last year by Experian found that 47% of consumers either have used or are considering using generative AI-powered tools to help with managing their personal finances.
Younger people are especially open to using AI. In the Experian study, two-thirds of Gen Zers and 62% of millennials said they already use the technology to manage their personal finances.
GOBankingRates broke down both studies to find out what a growing number of Americans are using AI for in their financial planning.
What Are Consumers Using AI for Specifically?
The use of AI in personal finance goes well beyond just creating budgets or tracking spending. In the Empower survey, these were the top nine areas respondents said they would feel comfortable using AI to help with financial decisions:
- Budget and expense tracking: 49% of respondents
- Retirement planning: 43%
- Everyday spending and recommendations: 40%
- Debt repayment strategies: 38%
- Tax planning and filing: 33%
- Mortgage options and home buying: 31%
- Investment portfolio management: 31%
- Insurance coverage selection: 28%
- College savings plans: 20%
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More than half of respondents said they would use AI in other finance-related areas, such as followingfinancial news(61% of respondents), researching new financial products (60%) and helping pick stocks (52%).
Why People Are Investing in AI Stocks
Although only a small percentage (13%) of respondents in the Empower survey said they are currently invested in AI-related stocks, more than one-third (37%) said they are “interested.” Here are the top reasons for investing in AI:
- Long-term financial growth: 66% of respondents
- Technology investments: 48%
- Staying ahead of market trends: 44%
- Portfolio diversification: 41%
In the Experian study, consumers said generative AI is most helpful for the following financial areas:
- Saving and budgeting: 60%
- Investment planning: 48%
- Improving their credit score: 48%
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This article originally appeared on GOBankingRates.com: More Americans Are Using AI With Finances — Here’s What They’re Using It for
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