A report has found that Gen Z and millennials are turning to AI for guidance on personal finance matters.

• A recent report by Experian reveals that approximately 67% of Gen Zers and 62% of millennials are utilizing artificial intelligence to assist with managing their personal finances.
• At least once a week, many people use AI for managing their finances, according to the report.
• Experts advise that while AI can be helpful, there are certain factors to take into account.

While AI can assist with tasks like resume writing and personal finance advice, financial advisors advise against relying solely on it.

According to a new report by Experian, 67% of Gen Zers and 62% of millennials are utilizing artificial intelligence to manage their personal finances. Users have stated that generative AI tools such as ChatGPT have been particularly helpful in areas such as saving and budgeting (60%), investment planning (48%), and credit score improvement (48%).

Christina Roman, consumer education and advocacy manager at Experian, stated that it is free, more accessible, and simplifies complex tasks like creating a budget.

From August 30 to Sept. 3, a survey polled 2,011 U.S. adults. The Gen Z respondents were between 18 and 27 years old, while millennials were between 28 and 43.

The holiday season brings increased risks for home insurance.

A smaller percentage of baby boomers (ages 60 to 78) have used or considered using generative AI as a financial tool compared to Gen Xers (ages 44 to 59) at 41%.

Experian reported that 98% of Gen Z and millennial adults had a positive experience with the software, according to data provided to CNBC.

It is advised to cross-check the information obtained through generative AI with external resources and experts before using it to create a budget or improve credit score.

Financial matters are often subject to misinformation, as Dawn C. Abernathy, a certified financial planner at Core Planning in Chesterfield, Missouri, pointed out. She has a background in engineering and software management.

Abernathy, who has worked in technology for several years and faced challenging problems, stated that he would carefully evaluate any response generated by any tool.

Pros and cons of using AI for financial advice

Abernathy stated that artificial intelligence can be advantageous for "very straightforward responses."

Roman requested the AI to create a budget that would help him save a specific amount of money, given that his monthly bills amount to approximately $1,500.

While AI can be helpful in simpler areas like investment advice and tax optimization, it may not be able to provide the same level of personalized guidance and expertise as a financial advisor.

"Abernathy stated that while AI tools may be useful in generating solutions, he would not fully trust them to produce the final solution and would need to verify and validate the results carefully."

Be cautious when using AI tools to protect your privacy.

Ensure that you're being cautious when inputting information into AI, as Roman advised.

Vet answers from AI

It's crucial to cross-check the information obtained from AI with other reliable sources and expert opinions before making any financial decisions.

Brenton Harrison, a CFP and founder of New Money, New Problems in Nashville, Tennessee, stated that the risk is being overly reliant on something that hasn't been thoroughly researched.

It's important to verify the accuracy of AI-generated information and seek professional advice from experts before making any financial decisions.