Younger adults use AI most for money, but older generations trust it more
Younger adults use AI most for money, but it’s the over 65s who trust it most.
Artificial intelligence is firmly and noisily in the news at the moment, with both positive and negative takes on how it’s used.
It’s a powerful tool that can cut the time it takes to complete the most mundane of tasks, and can even assist with more delicate work, such as reviewing scans and x-rays for something the human eye might miss.
Inevitably, with any new technology, it’s only as good as the person using it, and it will also be used for the wrong reasons. The pace of technological change is outstripping those responsible for monitoring and legislating it. It’s also worth remembering how power hungry AI datacentres are, and how much water they need for cooling, particularly against a backdrop of drought and low rainfall.
We’re all familiar with the trope that younger generations adapt more easily to change, particularly technological change, while older generations are seen as slower to adopt and more wary of it, often relying on younger family members to help them get set up.
There’s more than a grain of truth in that. Older people tend to feel more comfortable with what they already know, while younger people absorb change more readily.
What the Lloyds research found
That pattern holds for AI too, but with one exception, according to research from Lloyds Banking Group, which looked at how its customers use AI to manage their finances.
The analysis found that while younger adults are well versed in how the digital world works, it’s actually the older generation who have taken to using technology for managing money, drawing on their longer experience.
The findings come from Generation Gains, a spotlight on financial empowerment from Lloyds Banking Group’s Consumer Digital Index, which looks at how digital tool use changes according to a person’s goals at different stages of life.
The research found that 76% of 18 to 24 year olds have used AI to manage their personal finances, making this age group the most enthusiastic adopters of AI for money management, so far in line with the usual assumption about younger people and technology.
However, confidence in managing money online appears to grow with age. Among those who use digital tools to manage their finances, 64% of 18 to 24 year olds say they feel confident doing so, rising to 85% of those aged 65 to 74.
What this suggests is that older generations bring a greater depth of financial understanding to the digital tools they use. For younger people building their financial knowledge, particularly around larger commitments such as mortgages, there’s a clear opportunity to close that confidence gap over time.
As Jas Singh, CEO, Consumer Relationships at Lloyds Banking Group, commented on the findings:
“Younger people have grown up with technology, which is a great start for making the most of digital tools to manage money, but confidence with money is something that’s built over time – and it’s the combination of the right tools and knowledge that is the real sweet spot for financial empowerment.
What’s encouraging is that many younger adults are already using tools like AI to help manage their finances, while older generations are proving they’re just as willing to embrace digital tools when they see value in them.
Younger people bring digital confidence and curiosity, while older generations bring experience and financial know-how. There is a real opportunity for generations to learn from each other, while technology can play a positive role in helping more people feel in control of their finances.”
Confidence with money matters when buying a home too
That same combination of the right tools and the right knowledge matters just as much when it comes to buying a home. Appointing a solicitor is a necessary step, but managing the sometimes bewildering legal side of a property transaction doesn’t have to mean paying over the odds. A value-for-money firm like Best Value Conveyancing can provide a focused, quality service while keeping a firm handle on cost. If you’d like to see how AI itself can help with the budgeting side of a property purchase, we’ve covered that in more detail here.
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