SAN FRANCISCO—Credit unions have from the time of their founding been there with advice and counsel when members reached out for financial help—but now many consumers say they are turning to artificial intelligence, instead.
The creates an emerging question: where do credit unions fit when the various generative AI services such as ChatGPT, Gemini and others are asked by consumers for money help. The answer, at least for now, is some good news—with a review by the CU Daily finding credit unions are prominently listed when the chatbots are asked for advice.
According to a new survey from Credit Karma:
- 66% of Americans surveyed who have used GenAI before say they use it to seek financial advice, rising to 82% of Gen Z and 82% of Millennials.
- 80% of respondents who acted on financial advice from an AI tool say it improved their financial situation.
- 75% of those who use GenAI say that GenAI allows them to ask the financial questions they’re too embarrassed to ask others.
Yahoo Finance noted that questions related to finance rank as the second most common use case for GenAI (41%), just behind health and wellness (44%).
“And it’s not just the occasional one-off question,” Yahoo Finance said. “Nearly two-thirds (65%) of GenAI users say they seek financial guidance from AI often…”
The FAQs
According to the analysis, those turning to GenAI for financial guidance use it for everything from help with the fundamentals to more complex topics, such as tax filing and investing.
Credit Karma found that among respondents using GenAI to seek financial advice, the most common topics include:
- Financial education and basic personal finance concepts (35%)
- Financial goal setting and action plans (35%)
- Budgeting and expense management (34%), optimizing savings (33%)
- Investing in the stock market (32%)
The survey found that when it comes to consumer sentiment around GenAI in general, 79% of users find the information generated to be accurate and 71% consider it helpful.
“But it’s not all without risk,” Yahoo Finance noted of the Credit Karma survey. “Of those who have acted on financial advice they received from GenAI, 52% say they have made a poor financial decision or mistake based on the information they received.”
For most users, GenAI is where they like to start, with 80% of those who have acted on financial advice they received from GenAI saying they still research and validate the advice before taking action.
Where Americans are Turning
Credit Karma said it further found consumers are turning to a mix of resources for advice. The survey found:
- Among the 51% of Americans who seek financial advice or information online, 27% consider social media the most useful source, followed by Google or other search engines (20%), with GenAI tools like ChatGPT or Gemini close behind (18%).
- Of those who have used GenAI for financial advice, nearly half (48%) say it’s faster and more direct than social media, 45% say it explains financial concepts more clearly or in simpler terms, and 44% believe it delivers more personalized advice based on the individual’s specific situation.
