smart money app plum found that 61% of young people trust AI to make financial forecasts and make savings and investment decisions. The study of smart money apps is based on research focused on AI banking.
plum An AI Banking survey of 2,000 UK adults found that more than half of 18- to 34-year-olds are satisfied with AI-powered financial forecasting. 45% of the same age group are confident about sharing data to save money. Only 15% of people over the age of 55 are willing to disclose the same data.
In addition, 50% of younger demographics felt comfortable trusting AI to make and execute their savings and investment decisions. Plum suggests that this could mark a major shift away from traditional financial advice and toward things like money management apps and AI advisors.
Moreover, many findings suggest that attitudes have changed in favor of AI. 58% of the youngest group were open to using AI to prevent fraud or perform facial recognition. Compared to a total of 52% of all ages, we see more young people considering using AI over time.
Other aspects of the AI Banking survey on saving money showed similar results. Only 40% of the respondents agreed. Following these results, the most important conclusion seems to be that young people are seeing broader applications for AI. This age group appears to be more open to experimenting with AI inside and outside financial services.
Skepticism Remains Around AI
Only 1 in 5 (18%) across all age groups felt they could benefit from an AI-powered financial app. Even among the youngest age group, 1 in 4 (24%) thought AI-powered apps would help them financially. Survey results show that while young people appear to be more open to using AI, the full transition is yet to be completed and considerable skepticism remains.
When we asked those surveyed if they understood how AI could make their lives better, 46% said they didn’t. The results highlight that many people generally do not see AI as a benefit in most life situations. Instead, people seem to understand AI in smaller, more specific contexts.
Victor TrokudesPlum’s CEO and co-founder gave the verdict on the research.
Trokoudes explains the results of the AI banking research: But what we are really starting to see are useful, real-world applications of AI in our everyday lives.
“They may not rule the world, but this kind of AI is having a democratizing effect on financial services, which is very exciting. It means everyone has cheap access to services that were gatekeepers for those with enough money to do so.
“That said, our data show that even among young people, more education is needed to better understand the technology they use. While you may be familiar with using AI, you still struggle to understand the broader benefits of adopting AI-like technologies in general.
“This speaks to the broader issues we face in the fintech space. We need to not let complexity and jargon alienate us.”