How AI is Shaping the Financial Future of Young People

The Growing Influence of AI

Artificial intelligence is widely viewed as one of the most influential technological advancements of the 21st century. From voice-activated assistants such as Siri and Alexa to services such as OpenAI, AI is increasingly being incorporated into everyday life, whether visibly or operating in the background.

AI continues to adapt and learn at a rate that experts describe as difficult to measure. A European Commission survey in 2025 found that 63.8% of those aged 16–24 have used AI tools (Eurostat, 2026), while a YouGov (2025) survey found that 34% of adults used AI regularly within the past 12 months. Despite growing adoption, only 18% of Britons say they trust AI systems to make decisions or take actions on their behalf. It is a key topic that continues to shape society, particularly in workplaces and education. However, this raises important questions: how trustworthy is AI, and are concerns about its presence justified?

AI and the Next Generation

AI tools are not entirely new. Alexa, Siri, and similar services have been available for some time as major tech companies continue to compete for innovation. For many users, these advancements have streamlined processes and made everyday tasks more efficient. The speed at which AI has entered mainstream use has been significant, with experts suggesting its growth is becoming increasingly difficult to measure.

Research carried out by Nominet (2026) found that more than half of young Britons believe AI tools make their lives easier. Liz Kendall, Secretary of State for Science, Innovation and Technology, stated:

“This research shows that young people are embracing AI in remarkable ways, using it to learn and save time. This is exactly how we want technology to support people of all ages. But its true benefits will not be realised until AI is both safe and accessible to everyone.”

Technology has developed rapidly since the introduction of the first modern smartphones in 2007. These advancements have shaped a generation that has grown up in a post-iPhone world. However, concerns about AI remain valid. There is growing uncertainty around the data it collects, its long-term impact, and whether increasing reliance on AI could negatively affect young people in the future. These questions remain largely unanswered.

Trust, Security and the Rise of AI Scams

A YouGov (2025) survey found that 75% of Britons are concerned about AI posing a threat to humanity.

Some of these concerns relate to the rise in scams. Kevin Peachey (2026), reporting on the UK Finance annual fraud report for BBC News, noted that scammers stole almost £1.3 billion in 2025, with criminals increasingly using AI-powered techniques and social engineering to manipulate victims into sharing personal and financial information. As technology continues to advance, cyberattacks are also becoming more sophisticated and widespread.

Beyond investing, AI is increasingly helping young people manage budgets, compare savings products, improve financial literacy and identify potential scams. As these tools become more sophisticated, they may play a growing role in everyday financial decision-making.

AI in Everyday Financial Life

For many young people, AI has become a useful tool for improving their financial understanding. Tools such as ChatGPT can explain investment terms, budgeting strategies and different financial products in a matter of seconds, making financial information more accessible than ever before.

In fact, research reported by Finextra (2025) suggests that younger adults are increasingly looking beyond traditional sources of financial information. The study found that 22% of 21–24-year-olds obtain financial guidance through social media platforms, while 67% of those aged 25–34 and 53% of those aged 21–24 use AI tools such as ChatGPT for financial guidance.

While this highlights the growing influence of technology in personal finance, it also raises important concerns. Although AI can be an excellent educational tool, it relies on information that is already publicly available and cannot reliably predict future market movements. AI platforms are also not regulated by the Financial Conduct Authority (FCA), meaning users do not receive the same protections associated with regulated financial advice.

For those considering investments, AI can be a useful starting point for research and learning, but it should not be viewed as a replacement for professional financial advice. Where appropriate, guidance from regulated financial advisers should always be considered before making important financial decisions.

How AI is Transforming Finance

There is no doubt that AI has had a significant impact on the financial world. AI-driven stocks have surged, with major companies such as Nvidia leading the way as a key player in AI computing, while AMD has also risen following a multi-year agreement with OpenAI, according to IG. This highlights strong growth potential across computing and related technology sectors. Similarly, AI cloud providers have experienced substantial growth over the past year, reflecting strong investor interest in emerging technologies.

Despite this, experts from the Bank of England have warned that widespread use of autonomous AI models in investment strategies could lead to correlated trading positions, potentially increasing market volatility during periods of economic stress.

Like other emerging trends such as cryptocurrency, investing in AI-related stocks carries significant volatility. Many developing companies experience rapid growth and decline, making outcomes difficult to predict and increasing the risk of capital loss. While investing is often encouraged in the current market, the approach taken depends largely on an individual’s risk tolerance.

Building a Financial Future in the Age of AI

Fixed-term cash ISAs currently offer interest rates of around 4–5%, while standard savings accounts typically offer lower returns of approximately 2–3%. Platform providers also offer Stocks and Shares ISAs, with returns and risk levels varying depending on investment choices.

Another option is Structured Products, which may offer higher upside potential but carry capital risk. However, these investments provide capital protection features designed to return the initial investment if certain conditions are not breached. Structured Deposits operate in a similar way but include additional FSCS protection, similar to that found in savings accounts and cash ISAs. These options vary in return and risk and can be used alongside other investment instruments to build diversified portfolios.

For young investors, consistent long-term contributions can help build financial stability and reduce pressure to invest large sums later in life.

Financial advice should always be sought from qualified professionals. While AI tools such as ChatGPT can provide general information, they carry risks as they may not always reflect the most up-to-date financial data, particularly in fast-moving markets.

Sources:

Eurostat (2026) – 64% of 16–24-year-olds used AI in 2025
YouGov (2025) – Brits are happy to use AI but still don’t trust it
Nominet (2026) – Almost all young Brits use AI – more than half say it makes life better
UK Safer Internet Centre (2026) – AI and Young People’s Everyday Lives, Learning and Emotional Wellbeing
BBC News / UK Finance (2026) – Surge in scams as fraudsters use AI to target people
Bank of England – Financial Stability Report
IG – AI Stocks and Market Analysis
Finextra / Aqua (2025) – Two-thirds of young adults relying on AI for financial advice