UK Consumers Embrace AI for Personal Finance Despite Trust Concerns

TL;DR: Personal finance has become the number one usage of AI in the UK, with 28.8 million adults (more than half of the adult population) using AI tools to manage their money over the past 12 months. Whilst consumers employ chatbots for budgeting, savings goals and investment research, 83% express concerns about data privacy and 80% worry about receiving outdated information.

Personal Finance Tops AI Use Cases

Personal finance is now the number one usage of AI in the United Kingdom, according to research from Lloyds Bank, as people increasingly turn to chatbots for help with budgeting, saving and financial education.

The most common use of AI for personal finance is helping to plan savings goals, with 53% using the technology for this purpose. Some 52% use AI to plan budgets, and 51% for financial education. However, AI is also being employed for future financial planning, investment research, debt management and tax preparation.

Some 45% said they have used AI for insurance comparisons and advice, whilst 39% and 37% used it for future planning and investment research, respectively. The figures follow earlier research from Checkout.com indicating that two out of five households would let AI spend their money if it meant saving time on menial tasks like paying bills.

Digital Confidence Grows

Lloyds reports that as many as 87% of people are now confident using the internet, an increase of four million people over the past five years. With this digital confidence, the number of those using mobile banking apps has tripled to 21 million.

Jas Singh, chief executive of consumer relationships at Lloyds, stated: “AI is rapidly transforming how people manage their money, with the potential for millions of consumers to feel more confident and in control of their personal finances. From everyday budgeting to planning for the future, we’re already seeing people use the technology to make smarter choices and build financial resilience.”

Trust Barriers Remain Critical

The main barrier with AI adoption remains a lack of trust, according to Lloyds. Eighty-three per cent are concerned about their data privacy and eight in ten worry about receiving outdated information. Some 70% express concern about a lack of tailoring to their personal circumstances.

Singh added: “As AI becomes a bigger part of our financial lives, trust is the next frontier. People want to be sure the information they receive is accurate, secure and truly tailored to their needs. That’s why banks have a vital role—not just in providing cutting-edge technology, but in combining it with trusted expertise and a deep understanding of our customers.”

Real-World Application

For 34-year-old Nicola, a data analyst from Brighton, AI has become the first place she goes for help with her finances. She says ChatGPT has helped her find a reward credit card that fits her needs, with AI explaining the benefits and application process of various options.

“It was so quick. If I’d tried to do that research myself, it would’ve taken ages,” she said. Nicola has also used AI when remortgaging to find out the best time to look for a new deal and to understand terminology. “Finances can be a bit overwhelming, but I feel like it’s educating me,” she added.

The research suggests that whilst AI adoption for personal finance has reached significant scale, addressing trust concerns around data privacy, accuracy and personalisation will be essential for deeper integration into financial decision-making processes.

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