Artificial intelligence is rapidly reshaping how Britons manage their finances, with more than half of UK adults now relying on tools like ChatGPT for financial guidance, according to new research by Lloyds Banking Group.
The study found that 56% of adults — equivalent to around 28.8 million people — have used AI platforms to help with decisions about budgeting, savings, pensions, and investments. Financial advice has overtaken all other uses of AI, surpassing tasks such as writing emails or documents (29%), finding recipes (20%), checking medical information (17%), and seeking career advice (14%).
Researchers say the findings reveal how quickly AI has entered everyday decision-making since becoming widely accessible less than three years ago. But they also warn that the growing reliance on unregulated technology could expose consumers to significant risks.
“AI is empowering millions to feel more confident about their financial decisions — but it’s vital they receive information they can trust,” said Jas Singh, Lloyds’ chief executive for consumer relationships.
The survey of 5,000 adults showed that one in three Britons now uses an AI tool at least once a week for financial information. While many use it for practical tasks such as budgeting or managing spending, others seek recommendations on investments, pensions, and taxes — areas that would normally require licensed professional advice.
Unlike financial institutions, AI tools are not subject to regulation. That means users have no legal recourse if they act on faulty or misleading information. Despite this, usage continues to climb. About 80% of respondents said they were concerned about receiving inaccurate advice, and 83% worried about how their data might be used.
Experts say the trend reflects Britain’s deepening “advice gap” — where millions cannot afford the average £1,000 fee for a traditional financial adviser. AI tools are filling that void. ChatGPT, developed by OpenAI, was the most popular platform, used by six in 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-assisted money management, suggesting the technology is already helping people make more efficient financial choices — at least in the short term.
The Financial Conduct Authority (FCA) is preparing new “targeted support” regulations, expected by late 2026, to allow financial firms to offer more personalised advice without full formal assessments. Still, Lloyds’ report indicates consumers are moving faster than regulators can adapt.
The FCA acknowledges AI’s potential to make financial information more accessible but continues to warn that human judgment and oversight remain critical. Consumers who act on AI-generated advice are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme if they lose money.
“Technology can help people take control of their money, but it cannot replace trust,” Singh said. “The future of financial advice must balance innovation with responsibility — ensuring that confidence doesn’t come at the cost of protection.”
