AI trend Aussie Gen Zers are jumping on

The future is here, and a new money trend has emerged, proving young people aren’t scared of it.

Artificial intelligence is slowly becoming mainstream, and Gen Zers are using it to learn how to manage their money.

Financial comparison website Compare Club surveyed 1000 Australians and found that nearly one in four reportedly uses AI to help make economic decisions.

The research also found that younger people are more likely to embrace the technology as a budgeting tool.

The future is here and is more effective than just using a calculator.

Renee, 27, lives in Sydney, works at a university, and has embraced the technology.

She initially started exploring AI for general purposes. Then, through conversations with mates, she realised she could also use the tool to help with budgeting.

Immediately, she found success using the tool and loved getting “personalised suggestions for budgeting strategies and investment opportunities.”

“I used AI to explore different forms of investing and how to maximise my weekly salary. The AI provided tailored advice based on my financial situation, which was more comprehensive than my previous research methods,” she told news.com.au.

Renee, 27, lives in Sydney, works at a university, and has embraced the technology Picture: Supplied.

Renee explained that using AI has been a game changer for her financially and has already helped her achieve personal goals.

“It provided detailed insights on investment options, helping me understand concepts like bonds, mutual funds, and index funds,” she said.

“While I haven’t started investing yet, I feel more knowledgeable when discussing finances with my investment-savvy friends.”

The technology has also helped her sort out her approach to money.

“I appreciate the straightforward layout and simplified explanations, which save me from sifting through numerous articles and conflicting advice,” she said.

“It enables me to have more in-depth conversations about finance due to the comprehensive answers it provides.”

Renee said AI has helped her sort out how to manage her money. Picture: iStock/Supplied

She’s learned about the 50/30/20 rule. Picture: iStock/Supplied

Leaning on artificial intelligence for financial advice has helped the 27-year-old understand how to make her money work for her.

“I’ve learned about various budgeting tools, techniques, and methods. One key concept I learned is the 50/30/20 rule for budgeting,” she said.

That’s 50 per cent on allocated necessities, rent, groceries, bills, 30 per cent on discretionary spending and 20 per cent on saving and investments.

Renee reckons that by following the advice given to her, she’s already saved $5,000 with it. The only thing she wouldn’t rely on the tool for is to complete her taxes.

“I currently use a family accountant for my taxes, which has been a convenient and reliable option for me. I hadn’t considered using AI for tax purposes mainly because I haven’t explored that possibility yet,” she said.

“At the same time, I’m open to the idea if it proves to be easier than working with an accountant.”

Research has found that young people are embracing AI. Picture: iStock

Kate Browne, head of research at Compare Club, said there’s clearly a trend of young people embracing AI.

“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,” she said.

“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.”

Ms Browne said she wouldn’t recommend anyone using the tool at tax time.

“AI is good for general advice, but we have found that the wheels tend to fall off entirely when it comes to specific advice. With privacy concerns around AI, we wouldn’t recommend putting in super-specific information,” she told news.com.au.

“While we might see bodies like the ATO using AI to help Aussies do their tax return in the future, the current platforms just aren’t worth the risk.”