Gen Z is Tapping into AI for Help with Finance and Investing, BMO Index Finds

A growing number of Canadians are using artificial intelligence technology to help manage their finances and investments.

According to the BMO Real Financial Progress Index, an indicator of how consumers feel about their personal finances and whether they are making financial progress, one-third of Canadians are now using AI to help manage money.

Among the 33% of Canadians using AI to help manage their finances, the most common uses include learning more about personal finance topics (45%); creating and/or updating household budgets (43%); identifying new investment strategies (42%); building savings (40%); and creating and/or updating their financial plans (40%).

The impersonal nature of AI can help keep emotion out of investing, believes Gayle Ramsay, Head of Everyday Banking Segment & Customer Growth for BMO.

“AI is a transformative technology that can instantly analyze information and generate ideas,” says Ramsay, “but people’s relationship with money is complex, personal and emotional.”

Not surprisingly, younger Canadians appear more likely to leverage AI for financial management purposes. Among Gen Z, 55% use AI in this context, which reflects a broader trend of younger folks being the most likely to use AI in general. Moreover, concerns about their overall financial situation is the leading source of financial anxiety for more than 90% of Gen Z, according to BMO.

Overall, more than half of Canadians believe AI can help people make more informed financial decisions and makes financial planning more accessible for everyone, which suggests an optimism toward the technology even among those who aren’t yet utilizing AI.

“By making it easier to help manage finances, AI is proving a powerful tool to build financial literacy and make informed financial decisions,” Ramsay stated. “Together with guidance from a professional advisor, more Canadians can be empowered to conveniently manage their money, achieve their goals and make real financial progress.”

The BMO Real Financial Progress Index launched in February 2021.