Artificial intelligence is fast becoming the UK’s most popular financial advisor, according to new research commissioned by Lloyds Banking Group. More than half of adults now use platforms like ChatGPT to make decisions about money.
The study found that 56 percent of adults in the UK – equivalent to 28.8 million people – have used AI tools to guide budgeting, savings, pensions and even investing. Financial advice has overtaken all other uses of AI and is mentioned more often than help with writing emails or work documents (29 percent), prescriptions (20 percent), medical questions (17 percent) or career advice (14 percent).
Researchers said the results showed how quickly AI has entered mainstream decision-making since it became widely available less than three years ago, but warned that the trend also exposed consumers to new risks.
Jas Singh, managing director of consumer relations at Lloyds, said: “AI is giving millions of people the power to feel more confident about their financial decisions – but it’s important they get information they can trust.”
The study of 5,000 adults found that one in three use an AI tool for financial information or advice at least once a week. Many users are looking for practical help – such as creating budgets – but others ask for advice on pensions, investments and taxes, areas that would normally require regular professional advice.
Unlike banks or investment firms, which are subject to strict rules about what they can tell their customers, AI platforms are completely unregulated. This increases the risk of people acting on false or misleading information and having no legal protection if something goes wrong.
Despite these dangers, user awareness remains mixed. Around 80 percent of respondents said they were worried about receiving inaccurate advice and 83 percent expressed privacy concerns – yet usage continues to grow rapidly.
Experts say the boom reflects a deeper problem in Britain’s financial system: the “advice gap”, where millions of people cannot afford the around £1,000 that a traditional financial adviser costs for a full review of their affairs.
ChatGPT, the AI chatbot developed by OpenAI, was the most used tool, cited by six out of ten respondents, followed by Google’s Gemini, Microsoft’s Copilot and Meta’s AI assistants integrated into WhatsApp and Facebook.
Users reported saving an average of £399 a year through AI-powered money management, suggesting the technology is helping people make more informed decisions in everyday life – at least in the short term.
The Financial Conduct Authority (FCA) is preparing to introduce new “targeted support” rules by the end of 2026, allowing regulated firms to offer more tailored guidance without having to carry out a full financial fact finding. However, the Lloyds study suggests that consumers are already well ahead of the regulatory curve.
The FCA has acknowledged the potential of AI to simplify complex information and improve accessibility, but continues to emphasize that human judgment remains crucial. The regulator is understood to be considering website updates to help consumers understand both the benefits and limitations of generative AI.
Consumers who respond to AI-generated recommendations are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme if they suffer financial loss.
Financial experts warn that while AI can make financial knowledge more accessible, it also risks normalizing untested advice.
Ignorance, fear of risk and frustration with the complexity of financial products have long led people to make poor decisions, the report said. AI could help close this gap – or, without neglecting it, widen it – by providing fast and personalized answers.
Singh concluded: “Technology can help people take control of their money, but it cannot replace trust. The future of financial advice must combine innovation with responsibility – and ensure trust does not come at the expense of protection.”
