According to a report by AustralianSuper, almost one in five (17 per cent) of Australians use AI for financial advice, particularly those aged 18 to 29, of whom 28 per cent use the technology for the same purpose, compared to 6 per cent aged over 60.
While most people do not use the AI advice alone when making decisions, with 37 per cent of Australians not trusting the technology for financial advice at all, 54 per cent of those who do use the tech for advice cross-check the information, and 32 per cent said they consult a financial professional.
However, 25 per cent said they acted on the advice given by the AI.
Most of the financial information users sought was to compare financial products, at 45 per cent, closely followed by a better understanding of retirement finances and superannuation, at 44 per cent. An equal number of people used it to estimate what they would need to retire.
However, a majority of Australians still have reservations about AI, with 59 per cent of respondents saying they didn’t trust where the information came from.
That being said, 34 per cent of all age groups showed interest in tailored AI solutions for financial advice. In 18- to 19-year-olds, that number jumped to 57 per cent if the technology was secure and personal.
Last month, the Australian Securities and Investments Commission (ASIC) released advice for Australians looking to use AI for financial advice.
Through its Moneysmart website, ASIC posted the tips in response to the growing number of people using the technology for financial information.
ASIC warns that users of AI need to be careful about the advice it gives, and its lack of credentials and credibility, while also raising concerns about privacy, encouraging users not to share unnecessary personal or financial information with AI tools.
That being said, it acknowledges that the technology does have applications for financial advice, stating that AI tools can summarise large amounts of data, answer questions or provide definitions, highlight market trends, and point users in roughly the right direction on where to look for more specific and tailored advice.
“While AI can be used as a learning tool, it should always be checked against trusted, independent sources to verify claims before acting on any information it gives you. We always encourage consumers to research broadly and not to rely on one source (whether AI or otherwise) when making decisions about their finances,” ASIC said in a press release.
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