A significant shift is underway in how Britons manage their money, with more than half of UK savers now turning to artificial intelligence tools for investment guidance. New research highlights a rapid adoption of platforms like ChatGPT, particularly among the young, even as trust in traditional institutions remains higher.
AI Adoption Accelerates Among Younger Investors
A survey of 1,000 adults conducted by STRAT7 found that 55 per cent have used AI-powered platforms for financial guidance over the past year. On average, each user invested approximately £2,350 based on such advice. This trend, first noted by City AM in October, shows a clear acceleration as individuals seek to bridge the UK's widening financial advice gap.
Usage is most prevalent among younger generations. Around four in five Gen Z and millennials have consulted tools like ChatGPT, Google Gemini, and Perplexity for financial questions. Strikingly, 14 per cent of Gen Z respondents stated they now rely on AI for all their financial guidance.
The Persistent Power of Traditional Advice
Despite the rise of AI, conventional sources continue to dominate final decision-making. The research indicates that 81 per cent of respondents used banks' websites, 76 per cent sought advice from family, and 75 per cent consulted experts. This reliance on trusted sources is reflected in satisfaction levels: over three-quarters were happy with guidance from banks' websites, compared to 67 per cent for AI-generated investment advice.
"People are clearly drawn to AI for low-cost, accessible guidance," said Sue van Meeteren, co-founder of STRAT7 Jigsaw. "But when decisions feel consequential, they still want reassurance from trusted institutions, lived experience and clear, objective explanations."
Regulatory Response and the Future of Advice
This behavioural shift coincides with regulatory changes designed to formalise and expand access to guidance. The Financial Conduct Authority (FCA) has announced new rules, effective from April 2026, that will allow high street banks to offer free guidance on pensions and investments. This move aims to close the advice gap and steer consumers away from unregulated sources.
In practice, AI currently acts more as a research assistant than a primary adviser. Only 10 per cent of people turn to AI first for financial guidance, while over a third use it mainly for budgeting rather than active investing. Interestingly, while older generations use AI less frequently, they deploy larger sums when they do, with Gen X and baby boomers investing an average of just over £3,100 using AI-based guidance.
The data paints a picture of a hybrid approach to personal finance, where innovative AI tools are used for exploration and initial research, but weighty financial decisions still default to human-centric, established channels.
