The study into the financial and investment habits of 1,000 UK adults found that 10% of those who use AI for financial guidance say that they go to AI platforms first for financial advice, and that more than a third ( 36%) use it for advice on how to better manage their budgets.

The research found that younger generations were more likely to consult AI for financial advice – with 81% of gen Z and 80% of millennial participants claiming that they did so sometimes. Meanwhile, 14% of gen Z participants reported that they use it to answer all their financial questions.

However, according to the survey, the top three most influential sources of financial guidance overall are: banks’ websites (used by 81% of respondents); family members ( 76%) and Money Saving Expert ( 75%). Social media ranked far lower, with 40% of participants reporting that they use it for financial guidance.

Sue van Meeteren, co-founder, Strat7 Jigsaw, said: “The financial services industry can’t underestimate the impact of generative AI as a tool for advice and guidance, especially for younger savers and investors. 

“If traditional investments like home ownership are seen as out of reach for younger people, control over other investing channels will become more important than ever. It’s no surprise that people are looking to AI for low-cost advice, and traditional financial services bbrands need to take note if they don’t wish to become sidelined by this audience.”

The survey also found that Money Saving Expert and banks’ websites were the financial sources that left users feeling most satisfied with the outcome – over three-quarters ( 78% for both) of customers were satisfied with the advice they received.

In comparison, two-thirds ( 67%) were satisfied with the investment advice they received from AI sources – and 65% were happy with what they received from social media.

Van Meeteren added: “Financial firms and banks should not assume that emerging channels are the only way to capture the attention of younger audiences, because the traditional channels are clearly alive and well with customers of all ages. 

“What people need most is tailored, personalised education and guidance to ensure that they’re making the best possible financial and investment decisions, no matter their circumstances. They want to know what’s in it for them.”