Artificial intelligence is gradually becoming a part of everyday life, and Gen Z is leading the charge in using it to improve their financial habits. A recent survey conducted by the financial comparison platform, Compare Club, revealed that nearly one in four Australians now use AI to help manage their finances and make smarter money decisions.

The survey, which included 1,000 participants, showed that younger generations are particularly quick to embrace AI as a budgeting tool, finding it both practical and accessible.

A Smarter Way to Manage Money

Take Renee, for example, a 27-year-old university employee living in Sydney. Initially, she began using AI for general tasks, but after chatting with friends, she realized she could also use the technology to streamline her budgeting and financial planning.

“I started exploring AI for basic purposes,” Renee explains, “but as soon as I found out it could help me with my finances, I jumped on board. The personalized budgeting strategies and investment suggestions were a game-changer.”

Renee immediately saw the benefits. “The AI tool offered tailored advice based on my specific financial situation, which was far more comprehensive than anything I’d researched on my own. It helped me learn about different investment strategies and ways to maximize my salary.”

Although she hasn’t yet ventured into the world of investing, she feels much more prepared to talk about finances with her more investment-savvy friends. “The AI introduced me to concepts like bonds and mutual funds, making me more confident in discussions,” she says.

Making Budgeting Simple

One of the standout features Renee appreciates is how AI simplifies her approach to budgeting. She follows the 50/30/20 rule, which divides her income into three categories: 50% for necessities, 30% for discretionary spending, and 20% for savings and investments.

Thanks to AI’s guidance, she’s already managed to save $5,000. “The tool made everything clear, from day-to-day budgeting to long-term financial planning,” she says. “I no longer have to sift through countless articles or deal with conflicting advice—AI makes the process so much easier.”

That said, when it comes to taxes, Renee still prefers a traditional method. “For my taxes, I use a family accountant, and that’s worked well for me. I haven’t looked into using AI for taxes yet, but I’m open to trying it in the future if it proves more efficient,” she adds.

AI and Gen Z’s Growing Trust

Kate Browne, head of research at Compare Club, highlighted that young Australians are increasingly relying on AI to simplify their financial lives.

“Our findings show that AI is becoming a go-to tool for many Australians, especially as the cost of living continues to rise. It’s helping people manage their finances more effectively without having to spend a lot on professional financial advice,” Browne explains.

However, she advises caution when it comes to using AI for specific tasks like tax preparation. “AI is great for general advice, but we’ve found it’s not yet ready to handle more detailed and sensitive tasks like tax returns. There are also privacy concerns to consider when sharing personal financial information with AI platforms.”

While AI may not yet replace professional financial services entirely, it’s clear that younger generations are leveraging the technology to take control of their finances in new and efficient ways. As AI continues to evolve, its role in personal finance is only likely to grow. However, it’s important to balance AI’s convenience with expert advice when dealing with more complex financial decisions.