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Research finds UK young adults are open to using AI for financial advice, especially as rising costs and stagnant incomes make traditional money management feel harder to sustain. New research from Cleo AI suggests that artificial intelligence is increasingly being viewed not as a futuristic extra, but as a practical support system for everyday financial decisions.
Based on a survey of 5,000 UK adults aged between 28 and 40, the findings paint a clear picture: most respondents are saving far less than they want to, and many feel stuck between good intentions and real-world pressures. Against this backdrop, AI-powered money tools are gaining attention as a possible way to close that gap.
Interest is already building. Around one in five respondents say they are curious about using AI to manage their finances, while another 12% describe themselves as actively excited by the idea. For a generation facing ongoing financial strain, AI is starting to look less like a novelty and more like a coping mechanism.
Financial Confidence Is Low, Despite Good Intentions
While openness to AI is growing, confidence in personal money management remains fragile. More than a third of respondents (37%) admit they struggle with self-discipline when it comes to spending, with impulse purchases often derailing savings plans. Even more striking, four in five participants believe they could improve their financial knowledge, highlighting a widespread sense of uncertainty about money decisions.
Age differences within the group are telling. Adults aged 28 to 34 report being about 15% more satisfied with their savings than those aged 35 to 40, and they save roughly 33% more each month on average. The data suggests that as people move deeper into adulthood, financial pressures accumulate faster than access to meaningful, ongoing support.
AI in Money Management: Practical Help Over Big Promises
For many respondents, AI represents a way to regain a sense of control. Comfort levels are highest when AI is used for specific, routine tasks rather than long-term strategy. Nearly two-thirds (64%) say they would trust AI to advise them on disposable income. More than half would allow it to move money to prevent overdrafts (54%) or manage regular bill payments (52%).
Cleo’s CEO and founder, Barney Hussey-Yeo, points to structural economic pressures as the real issue. Rising living costs, low wage growth, and persistent debt mean that many people are not failing at money management—they simply don’t have enough slack for traditional advice to feel useful. In that context, AI tools positioned as everyday assistants, capable of working within very tight budgets, are likely to resonate more than aspirational financial planning products.
Younger Millennials Lead Adoption, but Trust Still Matters
Adoption is being driven primarily by the younger end of the cohort. Adults aged 28 to 34 are around 8% more confident than those aged 35 to 40 when it comes to using AI-powered financial tools. Even so, trust remains a significant barrier. Almost a quarter of respondents (23%) say they would prefer to start with limited use and only increase their reliance on AI once it has clearly proven its value.
This cautious optimism suggests that while research finds UK young adults are open to using AI for financial advice, they are not ready to hand over full control without evidence that the technology genuinely helps.
Regional Savings Gaps Highlight Uneven Financial Reality
The research also underlines stark regional differences across the UK. Average monthly savings in the South are 26% higher than in the North. Londoners save 33% more than the national average and around £250 more per month than people in cities such as Norwich.
London (£431), Brighton (£401), and Edinburgh (£386) report the highest average monthly savings, while Newcastle (£185) and Cardiff (£184.95) sit at the bottom of the table. These gaps reflect not just income differences, but also uneven cost pressures and access to opportunity across regions.
What This Means for Fintech Decision-Makers
The clearest signal from the data is not excitement about AI itself, but demand for support under sustained financial stress. High levels of reported poor self-discipline (37%) and low confidence in financial knowledge (80%) suggest that execution, not intention, is the core challenge.
Trust acts as a gateway rather than an afterthought. Although many respondents are willing to delegate tasks like overdraft avoidance, a significant minority want proof before deeper engagement. This points toward modular product design, gradual automation, and clearly visible benefits rather than all-in solutions from day one. Adoption will be earned through usefulness, not branding.
The age split within the 28–40 group is also important. The sharp decline in savings satisfaction among those aged 35–40—often the stage when housing costs, dependants, and long-term obligations increase—suggests that fintechs focusing only on younger professionals may miss a group with very different needs. Tools that help manage cumulative financial burdens are likely to be more relevant for older millennials.
Finally, regional disparities weaken the case for one-size-fits-all products. London’s higher averages mask much tighter financial realities elsewhere. To feel credible outside high-income urban centres, fintech tools may need region-sensitive pricing, thresholds, and nudges through notifications or in-app messaging.
Overall, the message is clear: research finds UK young adults are open to using AI for financial advice, but only when it meets them where they are—financially stretched, cautious, and looking for practical help rather than big promises.
