Why Gen Z Is Using Artificial Intelligence for Financial and Investment Advice?

Key Takeaways

1. According to Experian, 67% of indian youth now use AI to manage their personal finances, which involves planning investments and improving credit scores.

2. A World Economic Forum survey observes that 41% of Gen Z and Millennials are open to allowing AI to manage their investments. 

What Has Happened? 67% of Gen Z Now Use AI Tools Like ChatGPT for Financial Guidance

In India, Young people manage their finances via AI tools such as OpenAI's ChatGPT and Google's Gemini, which help them deal with credit card debt, stocks and ETFs. 

Two-thirds of adults who used AI for financial advice say they followed it, and 80% say it improved their finances.

What was the previous update? The WEF 2024 Report had already spotted an AI Investment Trend Among Youth.

The WEF Global Retail Investor Outlook 2024 found that AI-driven investing is more and more popular in emerging markets. 

In this area, almost 48% of investors across all age groups are open to using AI for financial decisions because it is easy to use and accessible.

Gen Z and AI Finance: A Revolution With Real Risks

A report highlights that Gen Z accounts for more than 27% of India's population, a very high share, and that more youth are being added to this crew day by day. 

They all depend on AI tools and tech to manage personal finance, invest via mobile apps, and use digital tools for financial education.

According to a 2025 report, researchers asked ChatGPT about 100 financial questions. AI answered 35% of them incorrectly, with one in three answers being hallucinations. 

Over half of users also admitted that they had taken a bad financial decision through AI, and 51% of Americans worried about their security when using AI for finance. 

The Way This Trend Affects Young Investors in India

A 2023 report found that over 60% of Gen Z Indians save regularly, and almost 35% start investing their money when they turn 25. 

After the COVID-19 pandemic, young Indians' financial awareness has increased. Now, Gen Z cares about their risk and is more comfortable with digital tools.

Here’s a brief overview of how Gen Z uses AI for financial topics in India and around the world:
 

In India, EY recommends that banks build goal-based financial planning with AI-powered tools, gamified savings tools, and ethical AI models to serve Gen Z and ensure a personalised, responsible plan. 

What Do Experts Say? Use AI as a Starting Point, Not the Final Word

Financial experts warn that AI should not be your only resource. 

Christina Roman of Experian notes that while AI is “free, accessible, and simplifies complex tasks like creating a budget.”

Tools may fall fast for difficult needs like tax optimisation and personalised investment advice.

Experts suggest that AI tools are best used as a starting point for basic financial questions. 

For more complicated investment challenges, such as a certified human financial advisor is still important for navigating personalised questions, risk profiling, and long-term strategy. 

One thing you should always know is to verify AI-generated answers and never share sensitive personal or financial details with AI platforms to avoid data privacy risks.

Conclusion

Gen Z's growing trust in AI for finance is changing the process of investing in India. AI offers speed and ease of access; it must be combined with human expertise, verified sources, and strong data privacy practices to support safe, sound financial decisions. 

FAQs

Why do two-thirds of Gen Z rely on social media for financial advice?  

Two-thirds of Gen Z rely on social media for financial advice due to its high accessibility, relatability, and the rapid, easy-to-digest nature of content from "finfluencers" on platforms like TikTok, YouTube, and Reddit.

Is using generative AI tools for financial investing strategies safe? 

These tools may not have adequate security measures in place to protect your personal data.