AI becomes go-to financial advisor for Gen Z, millennials

Generative AI is now the preferred choice for millennials and Gen Zs in managing finances. Experian’s new survey found that 67% of Gen Z and 62% of millennials in the U.S. use AI tools for everything from budgeting to improving their credit.

ChatGPT and similar platforms help streamline financial planning, saving, and investment management. According to Christina Roman from Experian, AI’s appeal lies in its accessibility, simplicity, and zero cost. “It’s free. It’s more accessible. It simplifies complex tasks like creating a budget.”

Financial advisors urge caution with AI

The survey, taken between August 30 and September 3, included 2,011 U.S. adults. Gen Z respondents were aged 18 to 27, while millennials ranged from 28 to 43. It also shows a steep generational divide: 41% of Gen Xers and just 28% of baby boomers said they had tried or considered using AI for financial help. Also, 98% of Gen Z and millennial users reported a positive experience with AI finance tools.

But financial advisors remain skeptical. Dawn C. Abernathy, a financial planner, warns that AI alone shouldn’t be anyone’s only source for financial advice. “We see misinformation on financial matters all the time,” she said, noting that she would always double-check AI-generated answers.

Abernathy added that while AI can handle basic tasks like budget calculations, its accuracy wanes in complex areas such as tax planning or investment strategies. Roman explained that for users looking to save or improve credit scores, AI offers an entry point.

But when it comes to complicated financial decisions, human expertise remains critical. Abernathy says he wouldn’t trust AI to generate a complete solution without thorough vetting, saying, “I would absolutely have to check and vet that very carefully.”

AI demand sparks growth at Amazon

Amazon is riding the wave of AI’s popularity, with the company reporting a 19% year-on-year revenue increase for Amazon Web Services (AWS), totaling $27.5 billion. Andy Jassy, Amazon’s CEO, described this surge as a “once in a lifetime opportunity” for the tech giant.

AWS, which is already a multibillion-dollar operation, saw “triple digit” growth in its AI business, although exact figures were not disclosed. As companies scramble to adopt AI, they’re also increasing demand for cloud storage, an area where AWS has capitalized.

Amazon’s also dealing with increased capital spending, with $22.6 billion invested in property and equipment last quarter, nearly doubling last year’s $12.5 billion. Jassy expects Amazon’s total capital expenditure to reach $75 billion this year, a trend he expects to continue. “The faster we grow demand, the faster we have to invest capital in data centers and networking gear and hardware,” he said.

Amazon’s other business areas also benefited, with total revenue rising 11% to $159 billion. Net income hit $15.3 billion, topping analysts’ expectations of $12.2 billion. The company projects holiday season sales between $181.5 billion and $188.5 billion, aligning with analysts’ forecasts.

Amazon’s advertising revenue jumped 19% to $14.3 billion, and its shares rose 6% in after-hours trading, pushing the company’s market valuation beyond $2 trillion.