Britain’s most AI-savvy generation has a financial confidence gap

According to new analysis from Lloyds Banking Group, more than three in four (76%) 18 to 24-year-olds have used AI for personal finance – making them the UK's most enthusiastic adopters of AI for money management

Yet confidence managing money online appears to grow with age. Among people who use digital tools to manage their finances, 64% of 18 to 24-year-olds say they feel confident about their finances, rising steadily to 85% among those aged 65 to 74.

The findings challenge a common assumption that younger people have the advantage when it comes to managing money online. While younger adults have grown up with technology, older generations appear to combine digital tools with years of financial experience. Many are also embracing AI more readily than age-related stereotypes suggest, with 47% of 55 to 64-year-olds and 35% of 65 to 74-year-olds having used AI for personal finance.

For younger adults then, there is a clear opportunity as they build life experience and financial knowledge, to turn to translate their digital confidence into greater financial confidence.

The findings come from Generation gains, a spotlight on financial empowerment from Lloyds Banking Group's Consumer Digital Index which explores how digital tool use changes to different goals throughout life.

What people use AI for changes sharply as their financial lives do: 

• Among people who have used AI for personal finance, almost two thirds (64%) of 25 to 34-year-olds use it for budgeting and planning - the highest of any generation. 
• Nearly three in ten (28%) 35 to 44-year-olds have turned to AI for mortgage advice.
• More than half (57%) of 55 to 64-year-olds have used AI to compare insurance products.

Older generations are embracing digital finance on their own terms 

Use of digital tools is not limited to the young as older generations are also reaping the benefits from using digital tools. Many people aged 55 and over are embracing AI for personal finance, with nearly half of 55 to 64-year-olds and more than a third of 65 to 74-year-olds having used it. Among 65 to 74-year-olds who use digital tools, more than half say they help them feel more in control of their money.

Older generations tend to be more selective in how they use technology, favouring trusted sources such as banks and in-person advice alongside digital tools. Despite this caution, among over-75-year-olds who do embrace digital tools, almost a third report positive outcomes, more than any other age group. 

Digital engagement is proving valuable for those nearing or in midlife too. Among 35 to 44-year-olds who have used AI for personal finance, over half use it for budgeting and planning, helping them make progress towards major financial goals such as reducing debt and preparing for a mortgage. 

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