What Gen Z Should Ask Before Using AI

Gen Z is exploring AI tools, reels and other material alongside traditional advisors and textbooks, but they need to take an informed approach

- Manas Malhotra

AI is quietly becoming a part of the lives of the Gen Z, who are savvier than the previous generations and are quick to embrace new technology, whether it's researching gadgets, submitting term papers, or checking out quick money-related advice.

Gen Z is now exploring AI tools, reels and other material alongside traditional advisors and textbooks for financial guidance. The 2025 CFA Institute Graduate Outlook survey shows that 91 per cent of young graduates trust human advisors. Parallely, 83 per cent also trust AI assistants like ChatGPT and 74 per cent trust robo-advisors.

Abhishek Kumar, a Securities and Exchange Board of India-registered investment advisor (Sebi RIA) and founder of Sahaj Money, says that Gen Z is drawn to AI tools because they are easy to use and low cost.

However, as accessible as they are, they may not always offer the full picture and even give wrong advice.

Are You Getting Right Advice?

Whether it's AI-generated reels promoting crypto tips or bots recommending stocks, many young investors get swayed without understanding the consequences, and risk ending up with the wrong advice.

Says Kumar: "This generation hasn't really experienced the risks of unregulated financial advice, so they are more willing to experiment. The guidance depends on the context you provide, and without sharing full financial details and risk tolerance, the advice might not fully suit you."

Kumar has had young clients who came seeking holistic advice from a Sebi RIA after being stung by irresponsible market trading based on general advice.

Take the case of a young user on Reddit, who shared his experience with AI-driven investing. "I made some money when I occasionally did options trading, but since last year I've been losing. The worst was when one of the companies in sustainable energy got bankrupt. The AI strategy I followed from ChatGPT cost me and I made losses."