Young generations look to AI for financial edge, but trust humans for the big decisions
More than half of both Gen Z and millennials say they are excited about AI and generative AI tools that could benefit their financial lives.
Younger Americans are more optimistic about the potential for artificial intelligence to improve their lives, including helping them reach their financial goals. More than half of both Gen Z and millennials say they are excited about AI and generative AI tools that could benefit their financial lives. Less excited were Gen X (44%) and baby boomers (33%), according to the latest findings from Northwestern Mutual’s 2024 Planning & Progress Study.
Advanced data analysis was the most exciting AI application for financial planning, survey respondents said. They also were interested in faster response times, increased efficiencies, improved customer service and greater opportunities for customization driven by AI.
However, those surveyed indicated they trust humans more than AI alone across core elements of financial planning, from creating a retirement plan to asking financial questions and managing budgets. Respondents were comfortable with financial advisors and providers using AI tools for common tasks like fraud detection, answering service calls, joining meetings and capturing notes, and more sophisticated tasks like predicting financial trends and modeling financial planning scenarios.
“It’s still very early in terms of how far the technology will go, but AI tools are going to allow for the mass automation of tasks, significantly reducing manual work and deeply improving efficiencies across not just financial services, but most industries,” said Christian Mitchell, executive vice president and chief customer officer at Northwestern Mutual.
“By alleviating the most tedious and administrative aspects of our work, it will free up precious time to focus on building human connections and deliverables that provide the greatest value. So, it is people who sit at the heart of this digital transformation. The expertise and personalization that financial advisors provide can’t be replicated or replaced by AI, but it can be enhanced. That’s why we believe the future is human + digital.”
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The study also explored people’s comfort level with AI in a few areas outside of financial planning. While very few are ready to replace humans with AI right away, trust levels in the emerging technology are fairly high.
For example, 40% of Americans have some level of trust in AI taking over for human umpires and referees in professional sports. Thirty-five percent trust AI to take over for nurses when collecting medical histories and current symptoms at doctor’s visits. About one-third said they trust AI to take over for artists in the production of movies, books, music and painting, and a similar percentage said AI could take over for educators to treat core curriculum classes.