BMO Survey: More Than a Third of Americans Using AI to Manage Finances

The BMO Real Financial Progress Index reveals a growing number of Americans, notably Gen Z, are increasingly using AI to manage their finances and investments. Among the 37% of Americans using AI to help manage their finances, the most common uses include learning more about personal finance topics (49%), creating and/or updating household budgets (48%), identifying new investment strategies (47%), building savings (47%), and creating and/or updating their financial plans (46%). While AI is helping Americans manage some aspects of finances, around two thirds (64%) say AI cannot understand how emotions influence financial planning. "AI offers great potential in the way we handle our finances, providing real-time insights and analysis. However, managing money is more than analytics; it is a deeply personal relationship shaped by emotions, experiences, and unique life circumstances," said Paul Dilda, Head, U.S. Consumer Strategy, BMO. "While AI handles technical aspects and routine tasks, a professional advisor brings a human touch, offering personalized guidance and understanding. Together, they create a holistic approach to financial management, ensuring more Americans stay on track towards their goals and make real financial progress." How Americans Are Using AI The survey highlights how AI is continuing to shape how Americans learn, work, and communicate, including:

• Reshaping Research: Nearly three in five (59%) are using AI to ask questions about topics of interest and 40% are using the technology for data analysis.
• Productivity Planning: 39% leverage AI to build business, travel, exercise and meal plans and/or manage their schedules.
• Changing Content Creation: Many Americans are using AI in their creative process including developing written drafts (43%) and photo and/or video editing (42%)
• Accessible Intelligence: More than half believe AI can help people make more informed financial decisions (53%) and makes financial planning more accessible for everyone (52%).
• Optimistic Outlook: Among Americans not using AI for their finances, nearly a third are considering using the technology to learn more about personal finance topics (32%), increase their savings (31%), find new investment strategies (29%), create and/or update their household budgets (29%) and financial plans (27%), and/or for retirement planning (27%).

The AI Generation Gap As Gen Z Americans begin navigating life changes, most are leveraging AI to plan for upcoming financial milestones – more than any generation. Gen Z are the most likely to use AI to ask questions about topics of interest (82%), create written drafts (75%), build business, travel, exercise and/or meal plans (67%), and manage their finances and investments (61%). In the last six months, 22% of Gen Z needed to make a large purchase such as a car, home, etc., 18% attended university or college, 15% switched jobs, and 13% started a business. However, 85% of Gen Z say concerns about their overall financial situation is the leading source of financial anxiety, followed by fear of unknown expenses (80%), housing costs (79%) and keeping up with monthly bills (76%). 58% of Gen Z believe AI can help people make more informed financial decisions and 55% are confident AI tools can help them make real financial progress. Making Real Financial Progress with BMO's Digital Tools Among the 89% of Americans who believe they are making real financial progress (4+ on 10-pt scale), 82% are confident in their financial situation and 45% believe AI-powered tools can help them make real financial progress. BMO offers the following savings tools and resources to help customers:

• BMO Total Look: Customers can easily view, track and manage their BMO and non-BMO financial information, including mortgages, checking and savings accounts, credit cards, investments, loans and more.
• BMO SmartProgress: A free online personal finance education platform that breaks down complex financial concepts like investing, retirement planning, homeownership and credit management.
• BMO CreditView: No-fee, no-impact access to your credit score so you can start monitoring and building credit to potentially save more by getting better interest rates on a home or auto loan.
• BMO Savings Builder Account: Receive rewards for reaching specific savings milestones, set and track personalized financial goals and monitor progress.
• BMO Real Financial Progress Hub: A free digital resource that allows customers to easily access personal finance advice and guidance, as well as tools and resources to reach their own specific financial goals.

About the BMO Real Financial Progress Index Launched in February 2021, the BMO Real Financial Progress Index is an indicator of how consumers feel about their personal finances and whether they are making financial progress. The index aims to spark dialogue that will help consumers reach their financial goals and to humanize a topic that causes anxiety for many – money. The research detailed in this document was conducted by Ipsos in the United States from May 31st to June 21st, 2024. A sample of n=2,501 adults ages 18+ in the United States were collected via the Ipsos panel. Quotas and weighting were used to ensure the sample's composition reflects that of the American population according to census parameters. This survey has a credibility interval of +/- 2.4 per cent 19 times out of 20, of what the results would have been had all American adults 18+ been surveyed.