How people in US are using ChatGPT for financial advice

More people are turning to generative AI chatbots for financial advice, whether it's for debt management, better saving strategies or stock picks, writes Kailyn Rhone

- Kailyn Rhone

When Myra Donohue's father, who is a financial planner, offered to help her with her finances, she politely declined.

With a background in accounting, she didn't want anyone else's help managing her $5,000 of credit card debt, not to mention car payments and other bills. But once Ms Donohue, 28, sat down with her finances, she realised how overwhelming the process would be, especially with two young sons and her partner recently laid off from his electrician's job.

She found a way to approach it in July, in a Facebook post about how to tackle your finances in seven steps. Step 1 was simple: List your income and fixed expenses and create a zero-based budget, a method that assigns a specific job to every dollar earned. Remembering how quick ChatGPT had been when she tried using it for other tasks, she decided to plug her numbers into the artificial intelligence chatbot and ask it to create a personalised financial plan.

Ms Donohue said she wasn't surprised by the advice the chatbot offered, but she was pleased by how quickly - within seconds - it generated a tailored budget for her.

AI chatbots have taken on many roles, including therapist, career coach, even romantic partner or friend. As more than half of Americans manage their finances on their own, many are turning to chatbots like OpenAI's ChatGPT and Google's Gemini for help tackling debt, finding better ways to save or figuring out how to invest in the stock market.

(The New York Times has sued OpenAI for use of copyrighted work. OpenAI has denied the claims.)

Two-thirds of adults who have used generative AI said they had used it for financial advice, and around 80% of those who acted on that advice said it had improved their financial situation, according to a recent survey of more than 1,000 people by Intuit Credit Karma. Younger generations are especially receptive: Around 82% of Generation Z and millennial AI users reported using it for financial guidance.