Report: Rising inflation pushing more consumers to AI for financial advice

More consumers are turning to artificial intelligence for financial advice as consumer prices continued to increase at a brisk clip earlier this summer, according to a recent report from J.D. Power. .The share of financially vulnerable consumers jumped to 40 percent in July. The increase drove the proportion of financially unhealthy households — classified as vulnerable, overextended, or stressed — to 64 percent, its highest mark in a year. Inflation remained the top concern for consumers, with 71 percent saying prices are rising faster than their incomes, up from 66 percent in June.As wallets tightened, more than half of consumers used AI for financial advice. ChatGPT was the most popular tool, cited by 52 percent of users overall, including 63 percent of those under 40. Google Gemini drew stronger adoption among consumers over 40, with 23 percent.Consumers turned to AI most often for saving strategies — 45 percent — and credit-related questions — 41 percent. That’s followed by investing, budgeting and general financial education. Thirteen percent of respondents used AI for banking and financial services daily, while 27 percent said they never use it for such tasks — highlighting uneven adoption.An even 36 percent share listed investing in the stock market, budgeting or managing expenses and general financial education as among the most sought-after financial topics when using AI. The surge in AI-driven financial guidance presents both a challenge and an opportunity for banks, according to J.D. Power. “As banks hope to build better relationships with consumers, leveraging new technology and effectively building awareness behind it could be a key cog in building trust and might even help some consumers get a better handle on their financial health,” according to the report.