Time to read : 3 Minutes
In a world where AI is encroaching into every aspect of our lives, it’s also fast becoming a sought after tool for managing personal finance.
In our latest research, we found:
Nearly one in four Aussies is using AI for financial decisions.
Almost three in four people are willing to use AI for budgeting.
More than half of the respondents said they would consider using AI to help with tax returns.
With Aussies stretched for time and money, many of us are looking at AI tools for help with finances.
Compare Club’s Head of Research, Kate Browne explains: “Many people are doing it tough in the cost of living crisis, so it’s not surprising that Aussies are looking for ways to manage finances better. AI is fast becoming another aid in the financial tool kit with many Australians turning to AI for help with setting up budgets and getting simple explainers on money.”
Be aware: AI can’t do everything. Hannah Blackiston recently tested AI tax tools and found them lacking when it came to advice but helpful for organising finances.
In which areas of personal finance are Aussies using AI for help?
The common areas Aussies are looking for answers – or solutions – to improve their finance knowledge include:
investing money
budgeting
saving
cash flow management
tax returns.
While budgeting and cash flow management are two areas that Aussies are confident in their abilities, many have used AI or are willing to use AI in the future to help with budgeting (76.05%) and cash flow management (67.24%).
This suggests that having some level of confidence could be a factor as to how receptive we are in using AI tools to help with personal finance decision making.
But can you trust AI?
The research found that Aussies appear to have more trust in AI, as well as social media and professional financial advisers than people in their own networks.
While many commonly turn to friends and family for finance matters, only 12.36% would trust them.
But as for trusting the information, a critical factor to consider when using AI is the accuracy of what it’s spitting out.
Kate says that one good question to ask is whether the information you’re being served is Australian and from a reputable source.
“Unless you’re using AI for something general, such as budgeting, there are different rules and regulations for financial advice from one country to another. Also, AI can generate misinformation so specific needs should be double checked against another and more reputable source.” says Kate.
How one Aussie has already saved $5,000
Renee Thomas, a full-time worker at a leading Sydney university, had been wanting to manage her finances better. She initially jumped on Google to search budget templates and tools, but found there were limitations in the resources.
Turning to AI, Renee started experimenting with Chat GPT. She found it to be more intuitive as it assisted with the right prompts. The suggestions introduced Renee to new ways of investing. These were ways that Renee had never considered like bonds, mutual funds and index funds.
Renee also learnt about the 50/30/20 rule for budgeting. While this approach may not be right for everyone, it worked very well for Renee. She was able to allocate 50% of her income to necessities such as rent and groceries. 30% was allocated to things she wanted and 20% was saved.
Over the course of 10 months, the small savings added up to a massive $5,000. Renee’s savings are an example of how households can use AI to get started and save.
Bottom line
Aussies turning to AI – and putting their trust in AI for personal finance – is a sign that we’re invested in improving finances with the convenience of new technology.
Yes but… double check everything. AI can and does make mistakes or “hallucinations”. It’s always wise to cross check what you’re being told by a machine. Maintaining a bit of skepticism is not a bad thing.
Go deeper:
About the AI Index:
Our survey results included responses from 1,000 Australian households from New South Wales, Victoria, Queensland, South Australia and Western Australia, aged between 18 and 55+.
Financial Disclaimer
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.
