SEPTEMBER - Forget about the robots coming to take your job …. AI might just be able to help you save thousands of dollars every year. New research by financial comparison site Compare Club has found that Artificial Intelligence (AI) is rapidly becoming a go-to resource for Australians managing their personal finances. A growing number of us are using machine learning to help us with budgeting, cash flow management and tax returns.
The research, which surveyed 1000 Australians, found that nearly one in four people* have reported already using AI for financial decisions. That jumps up to nearly 3 in 4 (73.6%) who are willing to use AI for budgeting, while over half would consider using AI to help with their tax returns. Younger people (18-44), men, and higher-income groups are more likely to adopt AI for financial tasks.
"Our research shows that AI is already an everyday tool for many Australians looking to streamline their budgeting and simplify complex tasks like cash flow management and tax returns," said Kate Browne, Head of Research at Compare Club.
Of the people surveyed, more than 57% of respondents using AI were responsible for all their household expenses, and another 28.84% were jointly responsible for their household bills.
“What we’re seeing is that as the cost of living increases, people are looking for ways to save without spending thousands of dollars for financial advice,” said Ms Browne.
Interestingly, while most Aussies seek the help of family and friends as the most common strategy, they do not consider them the most trustworthy sources of information. 26.16% of people ranked AI as trustworthy behind social media (25.64) and professional advice (23.79%). Only 12.36% of Australians trusted family and friends.
ChatGPT emerged as the leading AI platform used by 80% of those who have employed AI for financial purposes. Bing AI and Gemini are the other popular platforms.
Renee Thomas, a full-time student engagement officer at a university in Sydney, recently saved $5000 by using AI to manage her finances. Initially, Renee relied on Google to find budget templates and strategies, but she soon transitioned to using AI tools like ChatGPT.
"The issue with Google is you have to know what to ask. ChatGPT has been helping to educate me on the options, and I ask it things like “how to invest” and “where to put my money”. AI gave me suggestions and taught me about bonds, mutual funds, and index funds—things I hadn't considered before," said Renee Thomas.
It also helped my budgeting. It suggested the 50/30/20 rule, which allocates 50% of my income to necessities like rent and groceries, 30% to wants, and 20% to savings. I managed to save $5,000 over a few months by making small, consistent savings,” said Renee Thomas.
Interestingly, while Renee trusts AI for financial advice, she still relies on a professional accountant for her tax returns. "I don't have any privacy concerns because I don't put in any private details," she adds.
"While it's clear that Australians are increasingly turning to AI for help wrangling their finances, the accuracy of the information remains a critical factor. AI can generate misinformation or may not distinguish between advice suitable for a US or UK market and advice with different rules and regulations. You always need to check the source and the information provided," said Kate Browne.
“Our research shows that AI is becoming a tool that Australians increasingly use. While it’s great to see Australians embracing new technology and wanting to learn more about their money, there’s still a need to balance convenience and confidence.”
-ENDS-
NOTES
*17% of all respondents
For media enquiries:
Jasmine Kostas
Media + Capital Partners
0425 327 224
jasmine.kostas@mcpartners.com.au
About Compare Club
Compare Club is one of Australia’s fastest-growing personal finance marketplaces. It helps Australians save money by navigating complicated and important financial decisions. Compare Club’s panel of experts offers bespoke advice to over 3.6 million members making 1 million product enquiries per year on key financial decisions, including health insurance, electricity and gas bills, and personal, car, and home loans. Compare Club is locally owned and employs 350 passionate staff across Sydney, Melbourne, and Brisbane and another 50 staff in Indonesia and the Philippines.
