Half of UK adults now use AI for financial advice, study finds

"Artificial intelligence is fast becoming Britain's most popular financial adviser, with more than half of adults now using platforms such as ChatGPT to help them make decisions about money, according to new research commissioned by Lloyds Banking Group. The study found that 56 per cent of UK adults - equivalent to 28.8 million people - have turned to AI tools for guidance on budgeting, savings, pensions and even investments. Financial advice has overtaken all other uses of AI, cited more often than help with writing emails or work documents (29 per cent), recipes (20 per cent), medical queries (17 per cent) or career advice (14 per cent)."

"Jas Singh, chief executive for consumer relationships at Lloyds, said: "AI is empowering millions to feel more confident about their financial decisions - but it's vital they receive information they can trust." The study of 5,000 adults found that one in three people uses an AI tool at least once a week for financial information or advice. Many users seek practical help - such as drawing up budgets - but others ask for recommendations on pensions, investments and tax, areas that would normally require regulated professional advice."

"Unlike banks or investment firms, which face strict rules on what they can tell customers, AI platforms are entirely unregulated. This raises the risk of people acting on incorrect or misleading information, with no legal protection if things go wrong. Despite those dangers, awareness among users remains mixed. Around 80 per cent of respondents said they were worried about receiving inaccurate advice, and 83 per cent expressed concern about data privacy - yet usage continues to grow rapidly."

Fifty-six per cent of UK adults, about 28.8 million people, have used AI tools for guidance on budgeting, savings, pensions and investments. Financial advice is the most common use of AI, cited more often than help with emails, recipes, medical queries or career advice. One in three people uses an AI tool at least once a week for financial information. Many users seek practical help such as drawing up budgets, while others request recommendations on pensions, investments and tax that would normally require regulated professional advice. AI platforms are unregulated, creating risks of incorrect or misleading guidance without legal protection. Around 80% of respondents worry about accuracy and 83% about data privacy, yet usage continues to grow.

Read at Business Matters