“I can let AI teach me like I was 5 years old”: Why Gen Z relies on artificial intelligence for financial and investment advice

This shift is subtle but important, and raises important questions about how much we should trust machines when it comes to money.

Bedtime Story Investors

For Mishra, the appeal of AI goes beyond convenience. It was freedom from judgment. “People around me have a lot of money. I was embarrassed to ask for help for my Rs 5,000 investment,” she admits.

I found it difficult to ask a friend. Asking my parents meant navigating the emotional minefield of talking about money. And what about financial advisors? “I don’t think I can afford anything nice yet,” she says.

What AI provided her with was a patient, available guide with no egos or fees. She asked the same question repeatedly in different ways and was able to get a clear answer each time. You can even ask her to explain concepts like compound interest in the simplest terms and she won’t hesitate to do so.

When millions of users ask similar AI prompts, they can focus on the same trades or themes, increasing the crowding risk of speculative assets. (Source: Freepik)

Over time, she moved from understanding basic terminology to comparing options to evaluating mutual funds based on five-year returns, and ultimately leveraging AI guidance on diversification to build what she calls a “balanced” stock portfolio.

“I have some faith in AI, but I don’t trust it blindly. I have made investments using AI, but it takes time to think it through,” she added.

Quick, easy and non-judgmental

Moni Shandilya, 26, a consultant at One Source, uses AI differently, but is driven by the same underlying impulse. For Shandiriya, it is primarily a tool for daily money habits. spending trackingmanage small savings and split your travel budget with friends.

“It’s quick and easy. You can always ask questions without feeling judged. Sometimes it’s easier than asking someone, especially if it’s a basic or ‘stupid’ question,” she says.

She recalls a time when, when planning a group trip, she followed the AI’s advice to split her savings and set aside a portion for a rainy day. She did it because the logic made sense and she felt the risk was low.

But when it came to stocks, she became more cautious and chose to hold back. “I asked my dad later because I wasn’t completely sure and wanted a human opinion,” she says.

This pattern is clear. AI is commonplace and humans are useful in high-stakes situations.

Abhirup Nag, 28, is even more cautious. He primarily uses AI to determine savings goals based on salary and plan travel budgets. When it comes to serious investing, he completely backs off.

“I have never received so much help in terms of key financial guidance from AI. I would much rather discuss it with my family and friends before investing,” says the expert. “AI is not for business investments. Rather, it is for office workers who need to spend their money wisely every month.”

expert opinion

Financial experts who are following this shift are not dismissive of AI, but they are clear-eyed about the AI ​​gap.

Adhil Shetty, CEO of BankBazaar, believes that AI has real utility in “everyday financial awareness such as understanding credit scores, comparing products, and deciphering financial jargon.” However, he points out that there are limits to its reliability that cannot be ignored.

Citing the BankBazaar Aspire Index 2025-26, Shetty points out that only 24% of Gen Z users reported being able to better manage their money thanks to AI, compared to 31% of older age groups. What’s even more surprising is that 8% of Gen Z users have already experienced it. direct economic loss Avoid over-reliance on AI tools. “This is not a small number for a generation that is still building its economic foundations,” he says.

AI can also make young investors more opinionated and sometimes overconfident (Source: freepik)

Kshitij Thakkar, founder of MTrust Investments, points out the more subtle danger of false confidence built on incomplete understanding. “AI often provides clear and convincing answers without conveying uncertainties, assumptions, or limitations. For younger investors, this can blur the line between information and advice,” says Tucker.

He also flags what he calls herd amplification. When millions of users ask similar AI prompts, they can focus on the same trades or themes, increasing the crowding risk of speculative assets.

There’s also the issue of liability. Unlike advisors, which are regulated by the Securities and Exchange Board of India, AI tools are not responsible for the results. “For Gen Z, the key risk is not using AI, but outsourcing decisions to AI,” says Tucker.

Information is available, but it is not yet effective

Experts note a clear trend: Knowing more about your finances doesn’t necessarily lead to better financial decisions.

Gen Z users are the most digitally savvy, but report the lowest economic attainment of all age groups, Shetty said. “The use of these tools has not yet translated into achieving financial goals,” he points out.

The gap between information and action, between understanding what SIP is and actually continuing to use SIP due to market declines, remains a very human problem.

The gap between knowledge and action—understanding what SIP is and actually sustaining SIP during market downturns—remains a fundamentally human challenge.

Mr. Tucker sees this shift changing the way younger clients interact with advisors. They come to your consultation already having done their AI homework, with model portfolios in hand, tax strategies planned, and questions sharpened. “This shortens the education stage and moves the conversation from basic guidance to validation, refinement, and risk adjustment,” he observes.

In some ways, AI has made Gen Z better customers, not fewer.

But there is also a flip side. AI also makes younger investors more opinionated and sometimes overconfident, requiring advisors to spend more time revising their assumptions. “Gen Z is not replacing advisors with AI; they are redefining the role of advisors from teachers to strategic partners,” Tucker said.

trust issues

Bruce Keith, CEO and co-founder of investorAi, offers a broader perspective. He said people have long avoided financial advisors for two main reasons: cost and trust. And AI can handle both. However, he cautioned against the idea that Gen Z is uniquely vulnerable to AI-driven misinformation.

“The people most at risk aren’t Gen Z; they’re older people who believe their answers are correct,” he says.

He believes his children, both of whom are Gen Z, have access to AI through college and are better equipped than most of their elders to “use and critique that response.”

However, cost remains a major barrier. For many young earners like Mishra, a quality financial advisor is out of reach for an initial Rs 5,000 investment. Keith agrees, pointing out that a hybrid model, where advisors leverage AI to offer a wide range of options, is ideal for many.

But for Gen Z, the expense will likely prevent them from using such services for several more years.

Great tool, but not enough

Returning to Mishra’s world, bedtime stories served as her foundation. She understands her portfolio better than she expected at age 25. But we are upfront about what AI cannot deliver.

“If I don’t influence the AI.” lose all my money “You might get the wrong data and you have nothing to lose,” she says. I can’t say it’s perfect, but you should be careful. ”

She concludes with something that reads more like a wish list for her future self than a critique of AI. “I think AI can be a great tool for people to start learning, but I would love to have a financial advisor someday, a really good advisor.”

Shetty also supports it. “Use AI to get information, but verify it before you act on it.”

After all, both AI and young investors are still learning, just at very different speeds and stakes.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Because individual financial situations vary, readers are encouraged to consult a qualified financial planner, advisor, or mental health professional before making any financial decisions.