Embracing Generative AI for Financial Success

I’ve spent more than 20 years helping people across the country learn about credit and personal finance through a variety of forums and channels and helping people increase their financial knowledge is a personal passion. We know many consumers are hungry for tools and resources to improve their understanding of credit and personal finance. The challenge often is determining the most effective means to reach consumers and disseminate information.

In the early days of my career, this looked like scheduling events on evenings and weekends, printing and mailing brochures and building rudimentary web pages. Over time, print has almost disappeared, and we began reaching consumers via our “online credit advice column” (years later we learned that was among the first blogs in our industry) and engaging directly through social media and video conferences.

Today, we’re entering another new and exciting era with the emergence of generative artificial intelligence (AI) solutions and capabilities.

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Generative AI is a technological advancement that promises to revolutionize many industries, much like the introduction of the internet and the smartphone in their time. Just as these innovations transformed how we communicate, access information and manage our daily lives, generative AI has the potential to reshape how we approach learning about and managing our personal finances.

Many Americans are already taking notice. In fact, new research from my company reveals 63% of consumers are familiar with generative AI, including a notable 84% of Gen Zers and 79% of Millennials. Most of these consumers are not just aware of generative AI; they’re actively using it to learn about new topics, including personal finance. Nearly half of respondents have either used or are considering using AI-powered tools to manage their finances, with an impressive 96% reporting positive experiences.

The appeal of generative AI

For many, the draw of the technology lies in its accessibility and efficiency. In many cases it’s free, easy to use, can save consumers both time and money — and they feel good using it.

Our research indicates that 67% of users feel more productive and make decisions faster with the help of generative AI. These tools can assist with tasks such as answering basic finance questions, helping users understand key concepts like credit scores or interest rates and even offering personalized suggestions for creating a budget.

For young consumers who don’t have access to financial literacy programs in school, or parents who are willing and equipped to share financial knowledge, generative AI can be a game-changing resource available at their fingertips.

Three tips to keep in mind when using generative AI

As with any new tool, it’s important to be mindful of potential limitations and responsible use. If you’re currently leveraging or are considering leveraging generative AI to learn more about or manage your personal finances, here are three tips to keep in mind to protect your financial health in the long run:

• Remember the fundamentals. While generative AI can be a valuable tool for financial management, it's important not to overlook traditional methods of protecting your financial health and credit, including checking your credit reports and scores regularly.
• Validate information. Generative AI tools rely on the data they are trained on, and there's a lot of misinformation about credit scores and financial management online. Always verify AI-generated financial advice with trusted sources.
• Use AI responsibly. Many generative AI tools collect and store user data. Be careful about sharing personal information, to help ensure your data remains secure.

There is no one-size-fits-all solution to improving financial literacy and health. Generative AI is a promising addition to the toolkit, but it should be used in conjunction with other financial resources and practices.

By combining traditional approaches to financial literacy with the innovative capabilities of generative AI, consumers can navigate their financial journeys more effectively.

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