Research from Cleo AI indicates that young adults are turning to artificial intelligence for financial advice to help them manage their money and develop more sustainable financial habits.
The study surveyed 5,000 UK adults aged 28 to 40 and found that the majority are saving significantly less than they would like. In this context, interest in AI-driven money management tools is rising. One in five respondents describe themselves as curious about using AI to manage their finances, while a further 12% say they are excited by the prospect.
Yet despite the interest in using AI in this context, confidence in personal financial management remains weak. More than a third of respondents (37%) report struggling with self-discipline around money, with impulse spending frequently undermining savings goals. Four in five believe they could improve their financial knowledge, pointing to a gap between intention and behaviour.
Adults aged 28 to 34 are around 15% more satisfied with their savings than those aged 35 to 40, and save around 33% more each month on average. The findings suggest that as people move through early adulthood, financial strain accumulates while access to effective, ongoing support does not increase at the same rate.
AI in money management
AI is being seen as a tool that might help regain financial control. Many respondents express comfort with using AI for routine financial tasks. Nearly two-thirds (64%) would trust AI to advise on disposable income, while more than half would allow AI to move money to avoid overdrafts (54%) or manage regular bill payments (52%).
Cleo’s CEO and founder, Barney Hussey-Yeo, states structural economic pressures are a major factor. Rising living costs, stagnant pay, low wages, and debt mean that many people are not mismanaging money so much as not having enough to make managing it worthwhile. In this context, AI tools positioned as practical, everyday assistance that can work with highly limited funds at its disposal rather than a tool for aspirational financial planning.
Younger respondents are driving adoption. Adults aged 28 to 34 are 8% more confident than those aged 35 to 40 in using AI-powered financial tools. However, trust remains a barrier: nearly a quarter of respondents (23%) prefer to begin with limited use of the technology and need evidence of value before significant engagement.
The research also highlights the regional disparities evident in the UK. Average monthly savings in the affluent South are 26% higher than in the North. Londoners save 33% more than the national average and around £250 more per month than those in Norwich. London (£431), Brighton (£401) and Edinburgh (£386) report the highest average monthly savings, while Newcastle (£185) and Cardiff in Wales (£184.95) sit at the bottom.
Implications for fintech decision-makers
The strongest signal in this evidence is not enthusiasm for AI per se, but demand for support under financial stress. High proportions citing poor self-discipline (37%) and low confidence in financial knowledge (80%) indicate that execution is the second problem.
Trust is a gating factor rather than a secondary concern. While headline willingness to delegate tasks such as overdraft avoidance is high, nearly a quarter of users want incremental proof before committing. This would favour modular product design and specific implementations in software rather than full automation from the outset. Evidence suggests adoption will be earned through demonstrated utility, not brand positioning.
Age-related divergence within a relatively narrow cohort (28–40) is notable. The sharp drop in savings satisfaction and contribution among those aged 35–40 (the time of life when most take on more responsibilities and financial burden) suggests that fintechs targeting young professionals only might miss those with materially different needs. For older millennials, tools that address cumulative obligations (housing, dependants, legacy debt, bills) are likely to be more relevant..
Regional savings disparities are large and persistent, with London outliers (where mean income is higher) masking much weaker savings capacity elsewhere. This weakens the case for nationally uniform products. Pricing, thresholds, nudges in the form of notifications and in-app messages may need regional bias if products are to feel realistic outside higher-income urban centres in the South of the UK.
(Image source: “Iced tea at Georgia’s” by Ed Yourdon is licensed under CC BY-NC-SA 2.0.)
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