- 61% of Gen Z use AI to help manage their finances andinvestments – more than any other generation.
- 64% do not believe AI understands how emotions influencefinancial planning.
CHICAGO, July 29,2024 /PRNewswire/ - The BMO Real Financial ProgressIndex reveals a growing number of Americans, notably Gen Z, areincreasingly using artificial intelligence (AI) to help managetheir finances and investments.
Among the 37% of Americans using AI to help manage theirfinances, the most common uses include learning more about personalfinance topics (49%), creating and/or updating household budgets(48%), identifying new investment strategies (47%), buildingsavings (47%), and creating and/or updating their financial plans(46%). While AI is helping Americans manage some aspects offinances, around two thirds (64%) say AI cannot understand howemotions influence financial planning.
"AI offers great potential in the way we handle our finances,providing real-time insights and analysis. However, managing moneyis more than analytics; it is a deeply personal relationship shapedby emotions, experiences, and unique life circ*mstances," saidPaul Dilda, Head, U.S. ConsumerStrategy, BMO. "While AI handles technical aspects and routinetasks, a professional advisor brings a human touch, offeringpersonalized guidance and understanding. Together, they create aholistic approach to financial management, ensuring more Americansstay on track towards their goals and make real financialprogress."
How Americans Are Using AI
The survey highlights how AI is continuing to shape howAmericans learn, work, and communicate, including:
- Reshaping Research: Nearly three in five (59%) are usingAI to ask questions about topics of interest and 40% are using thetechnology for data analysis.
- Productivity Planning: 39% leverage AI to buildbusiness, travel, exercise and meal plans and/or manage theirschedules.
- Changing Content Creation: Many Americans are using AIin their creative process including developing written drafts (43%)and photo and/or video editing (42%)
- Accessible Intelligence: More than half believe AI canhelp people make more informed financial decisions (53%) and makesfinancial planning more accessible for everyone (52%).
- Optimistic Outlook: Among Americans not using AI fortheir finances, nearly a third are considering using the technologyto learn more about personal finance topics (32%), increase theirsavings (31%), find new investment strategies (29%), create and/orupdate 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 areleveraging AI to plan for upcoming financial milestones – more thanany generation. Gen Z are the most likely to use AI to askquestions 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 largepurchase such as a car, home, etc., 18% attended university orcollege, 15% switched jobs, and 13% started a business. However,85% of Gen Z say concerns about their overall financial situationis the leading source of financial anxiety, followed by fear ofunknown expenses (80%), housing costs (79%) and keeping up withmonthly bills (76%).
58% of Gen Z believe AI can help people make more informedfinancial decisions and 55% are confident AI tools can help themmake real financial progress.
Making Real Financial Progress with BMO's DigitalTools
Among the 89% of Americans who believe they are making realfinancial progress (4+ on 10-pt scale), 82% are confident in theirfinancial situation and 45% believe AI-powered tools can help themmake real financial progress.
BMO offers the following savings tools and resources to helpcustomers:
- BMO Total Look: Customers can easily view, trackand manage their BMO and non-BMO financial information, includingmortgages, checking and savings accounts, credit cards,investments, loans and more.
- BMO SmartProgress: A free online personal financeeducation platform that breaks down complex financial concepts likeinvesting, retirement planning, homeownership and creditmanagement.
- BMO CreditView: No-fee, no-impact access to yourcredit score so you can start monitoring and building credit topotentially save more by getting better interest rates on a home orauto loan.
- BMO Savings Builder Account: Receive rewards forreaching specific savings milestones, set and track personalizedfinancial goals and monitor progress.
- BMO Real Financial Progress Hub: A free digitalresource that allows customers to easily access personal financeadvice and guidance, as well as tools and resources to reach theirown specific financial goals.
About the BMO Real Financial Progress Index
Launched inFebruary 2021, the BMO Real Financial ProgressIndex is an indicator of how consumers feel about their personalfinances and whether they are making financial progress. The indexaims to spark dialogue that will help consumers reach theirfinancial goals and to humanize a topic that causes anxiety formany – money.
The research detailed in this document was conducted by Ipsosinthe United StatesfromMay 31st toJune 21st, 2024. A sampleof n=2,501 adults ages 18+ inthe United Stateswerecollected via the Ipsos panel. Quotas and weighting were used toensure the sample's composition reflects that of the Americanpopulation according to census parameters. This survey has acredibility interval of +/- 2.4 per cent19 times out of 20, of what the results would have been hadall 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 yearsand counting, BMO is a diverse team of highly engaged employeesproviding a broad range of personal and commercial banking, wealthmanagement, global markets and investment banking products andservices to 13 million customers across Canada, the UnitedStates, and in select markets globally. Driven by a singlepurpose, to Boldly Grow the Good in business and life, BMOis committed to driving positive change in the world, and makingprogress for a thriving economy, sustainable future, and inclusivesociety.
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SOURCE BMO Financial Group
