Why Gen Z is turning to AI for money advice

Not too long ago, young people looking for financial guidance would typically seek advice from parents, bank representatives, financial planners or personal finance books.

Today, however, many are just as likely to consult ChatGPT, browse Reddit discussions or watch social media creators explain investing, budgeting and stock market trends in bite-sized videos.

As AI-powered tools become more advanced and financial content continues to proliferate across digital platforms, Gen Z is fundamentally changing the way it accesses and consumes money-related information.

Yet while chatbots can provide instant responses and finfluencers can make complex financial concepts more accessible, experts caution that ease of access should not be mistaken for reliability.

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The debate is no longer about whether Gen Z uses these platforms for financial advice - it is about where their trust ultimately lies when making decisions that could affect their savings, investments and long-term financial future.

'I prefer getting my stock and IPO updates from Instagram and YouTube creators'

Harsh Kumar, 23, who is an MBA student, shares with Firstpost that he massively uses AI for research as it is a new space and he hasn't explored it in depth when it comes to seeking financial guidance.

However, he says "I prefer getting my stock and IPO updates from Instagram and YouTube creators. I already follow people like Raj Shamani, Akshat Shrivastava, Pranjal Kamra, and CA Rachana Ranade, who break everything down in Hinglish before the news even catches up."

Sharing further with Firstpost, the student states that "word of mouth hits different too - that one bhaiya (brother) or chachu (uncle) who's always on these brokerage platforms, friends from college or office who invest, and even the random IPO forward in the family WhatsApp group. At times, I've received some of the best tips from my family."

When it comes to seeking more long-term financial tips, "I just open ET Markets or Moneycontrol, turn on notifications, and they ping me the second a big IPO drops or a stock moves," says Kumar.

'I started investing with the help of AI tools like Claude'

Another student named Radha Anjaria, 20, who is pursuing B.E in mechanical (engineering), says that her financial journey started with watching a reel.

"I personally, being Gen Z first, started investing by seeing a reel. That’s when I started investing in gold then started researching about trading," she shares.

Anjaria further shares that she invested gold with the help of AI tools. "I slowly started investing in it with the help of AI tools like Claude then started mutual funds also through AI and reels. So yeah, I mostly got influenced through AI and reels," she concludes.

Social media is becoming Gen Z's financial classroom

According to research by the CFA Institute and FINRA Foundation, 48 per cent of Gen Z investors use social media to learn about investing, making it their most popular source of investment information.

Platforms such as Instagram, YouTube, TikTok and Reddit have transformed financial education into bite-sized, easy-to-consume content, helping young people engage with money matters earlier than previous generations.

Interview: Mr Shobhit Mathur, Co-Founder, Ionic Wealth speaks to Firstpost

To better understand whether Gen Z is increasingly turning to artificial intelligence tools for financial advice, and whether this is emerging as a significant trend in personal finance, Firstpost spoke with Mr Shobhit Mathur, Co-Founder of Ionic Wealth.

Drawing on his experience in wealth management and investment advisory, Mathur shared insights into how younger investors are using AI-powered platforms, the opportunities these tools present, and the potential risks of relying on them for financial decision-making.

1. Gen Z is increasingly turning to AI tools like ChatGPT, Reddit and social media creators for financial advice. From a wealth management perspective, why do you think this generation is trusting digital platforms over traditional financial advisers?

The real shift is not that Gen Zs trust AI more than financial advisers; it is that they trust technology as the starting point of discovery. Having grown up with information at their fingertips, they expect financial guidance to be as accessible, personalized and interactive as every other digital experience.

AI tools and online communities have become the first stop for learning about investing because they are intuitive, engaging and freely accessible.

This generation is digitally native and is increasingly comfortable with a DIY investing journey that involves minimal human intervention for relatively simple decisions, such as investing in mutual funds or ETFs.

However, as financial goals become more complex and portfolios require long-term planning, the role of human expertise becomes increasingly important.

Decisions around asset allocation, tax optimisation, succession planning and behavioural discipline cannot be fully automated. AI can simplify information and improve accessibility, but it cannot replace domain expertise.

A useful analogy is healthcare. AI can help identify symptoms or provide preliminary information, but when it comes to diagnosis and treatment, consulting a qualified doctor remains indispensable.

Wealth management is no different. Technology may become the first point of engagement, but expert advice remains critical for building long-term financial resilience.

Gen Z is not moving away from traditional financial advisers, they are trusting a more accessible, time-efficient and intuitive way of accessing wealth management services.

The future of wealth management is therefore unlikely to be purely digital or purely human. It will be an omnichannel model, where AI enhances efficiency while human advisers provide context, judgment and conviction to future proof portfolios.

2. AI can make financial information more accessible, but money decisions often require context and personal understanding. What are the biggest risks of relying on AI tools or finfluencers for investment advice?

The democratization of financial information is a positive development, but easy access to information should not be confused with sound investment advice.

AI tools and social media creators can simplify concepts and make investing more accessible, but they cannot fully understand an individual's financial goals, risk appetite, liquidity needs or tax considerations.

The biggest risk is treating AI-generated responses or social media opinions as definitive investment advice. Markets are dynamic and influenced by factors such as economic cycles, policy decisions, geopolitical events and investor sentiment, many of which cannot be accurately predicted by algorithms or generalized content.

Similarly, finfluencers often create content for mass audiences, which may not be suitable for every investor's unique circumstances.

A resilient portfolio is built on disciplined asset allocation, diversification and long-term planning rather than chasing trends or relying on generic recommendations.

3. Do you see AI replacing human financial advisers in the future, or will the future of wealth management be a combination of technology and human expertise?

AI will fundamentally transform wealth management, but it is more likely to augment and empower advisers than replace them.

Every major technological innovation has automated routine tasks while increasing the value of strategic decision-making and wealth management will be no different.

AI can dramatically improve research, portfolio analytics, client servicing and personalization, making advice more scalable. But trust, empathy and judgment remain uniquely human capabilities, especially during periods of market volatility when investor behaviour often look for outcomes more than investment selection itself.

The next decade will likely see the emergence of a ‘Omnichannel Model’ of wealth management, where AI handles information processing and execution, while human advisers focus on strategic planning and complex financial decisions.

Why Gen Z trusts more than traditional financial institutions

According to Jeel Gandhi, CEO of Under25, trust for Gen Z is no longer built solely through banks, financial institutions or traditional experts. Instead, it is shaped by a mix of peers, creators, online communities and increasingly, AI-powered tools.

“If you want to understand where Gen Z gets financial advice from, you have to look at their definition of trust. For this generation, trust is no longer built only through traditional institutions, but through a mix of peers, creators, communities, and increasingly, AI-led tools," says Gandhi.

This shift has dramatically changed how young people engage with money. Financial information is now available instantly, often explained in simpler, more relatable ways than traditional financial literature.

“So access to financial information today is far more immediate and easy to understand, which is enabling more young people to start engaging with money matters earlier and more independently than before."

Platforms such as Reddit, creator-led content and AI tools like ChatGPT have helped make conversations around investing, budgeting and personal finance less intimidating for first-time learners.

However, Gandhi cautions that easier access to information does not always mean better context. Unlike traditional financial advice, which typically comes with regulatory oversight and standardised frameworks, online advice often presents multiple viewpoints that users must evaluate for themselves.

“This shift means that information doesn’t always come with the same level of context or standardisation as traditional sources. As a result, Gen Z often navigates multiple perspectives, cross-checking, and validating decisions through a mix of sources."

The result is a generation that is increasingly self-directed in its financial decision-making, but also one that must learn to distinguish credible advice from noise.

“This makes financial advice today more inclusive and widely available, but also places greater importance on clarity, credibility, and context in how that information is shared and consumed.”

AI is emerging as a new financial adviser

A survey by BMO Financial Group found that 61 per cent of Gen Z respondents use AI tools to manage their finances.

Many use AI-powered platforms to learn about personal finance, create budgets, develop savings plans and even explore investment strategies. The appeal lies in the instant, personalised responses that AI tools can provide, often without the intimidation associated with traditional financial advice.

Gen Z is investing younger than ever

Research suggests that Gen Z is entering the world of investing at a much younger age than previous generations.

A CFA Institute study found that 82 per cent of Gen Z investors started investing before the age of 21.

Easier access to financial information, commission-free investing platforms and the rise of online financial communities have all contributed to a generation that is becoming financially engaged earlier in life.

Trust is shifting from institutions to multiple sources

Unlike previous generations, Gen Z does not rely on a single source of financial advice.

Studies show that young investors often combine insights from social media creators, online communities, AI tools and professional advisers before making financial decisions.

This approach reflects a broader shift in how trust is formed, with many young people preferring to cross-check information across multiple platforms rather than depend solely on traditional institutions.

Human advice still matters

Despite the growing popularity of AI and finfluencers, human financial advice remains important. A recent CFA Institute survey found that more than 90 per cent of affluent Gen Z and millennial investors use some form of paid financial advice, whether through traditional advisers, robo-advisers, accountants or lawyers.

The findings suggest that rather than replacing professional guidance, AI and social media are increasingly complementing.