Young people increasingly rely on influencers and AI when it comes to money. This is because they can answer complex questions more easily than banks. Experts say this also has to do with trust: young people prefer to trust peers or similar communities over large banks or institutions.
Generation Z is considered a “digital native,” meaning they are a group of people who have grown up with modern technologies like computers, the internet, and mobile phones from a young age.
And young people are used to getting solutions to problems at the push of a button. This also applies to more complex topics such as financial advice. Having grown up with this, they expect financial advice to be just as accessible as other topics. Here, AI provides an exciting alternative or at least a low-threshold entry point.
AI and influencers should be able to explain financial questions in a practical way
What does Gen Z use AI for specifically? Young people primarily use AI as a kind of entry and explanation tool: it helps in understanding terms, simulating scenarios, and providing initial ideas for budgeting, saving, or investing. It is therefore used more as a digital sparring partner than a full replacement for human advice. For example, Shobhit Mathur, co-founder of Ionic Wealth, explains (via Firstpost.com):
Generation Z is not turning away from traditional financial advisors but is relying on a more accessible, time-saving, and intuitive way to access wealth services.
The use of these technical tools, however, leads to a new problem: while AI may sound convincing, it often provides inaccurate or outdated information. This is particularly sensitive when it comes to financial questions, as small mistakes can have significant consequences.
In addition to AI, Generation Z is also increasingly relying on influencers on YouTube, Instagram, and TikTok. Some of them are popular for explaining finances in a practical way and not sounding dry or didactic like regular financial experts.
Jeel Gandhi, CEO of Under25, explained in an interview with FirstPost that trust among Generation Z is no longer built solely through banks. Instead, it is a mix of various aspects:
If you want to understand where Generation Z gets its financial advice from, you need to look at their definition of trust. For this generation, trust is no longer built only by traditional institutions but through a mix of peers, influencers, communities, and increasingly also through AI-powered tools.
In general, however, Generation Z is much more skeptical of artificial intelligence than it was a few years ago. This is primarily due to fears of job loss caused by AI or other tools affecting young people. Nevertheless, this is not enough to completely turn away from AI: Generation Z complains about AI, but that’s still not enough for a significant decision
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